Ducommun (NYSE:DCO) Shares Gap Down - Should You Sell?

Key Points

• Ducommun shares fell sharply: The stock opened at $157.47 versus a prior close of $168.59 and was last trading near $154.74.
• Analyst sentiment remains positive overall: Five analysts rate Ducommun a Buy and three rate it a Hold, producing a consensus “Moderate Buy” rating and a $201.50 price target.
• Recent operating results were better than expected: Ducommun reported quarterly EPS of $1.18 versus the $0.98 consensus estimate, while revenue rose 11% year over year to $224.49 million.

Ducommun Incorporated (NYSE:DCO - Get Free Report)'s stock price gapped down prior to trading on Friday. The stock had previously closed at $168.59, but opened at $157.47. Ducommun shares last traded at $154.7420, with a volume of 22,710 shares traded.

Analyst Ratings Changes

DCO has been the subject of a number of recent research reports. Weiss Ratings downgraded Ducommun from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, September 18th. The Goldman Sachs Group reissued a "buy" rating on shares of Ducommun in a research report on Monday, August 10th. Truist Financial raised their price objective on shares of Ducommun from $150.00 to $209.00 and gave the company a "buy" rating in a research report on Thursday, August 13th. Wall Street Zen upgraded Ducommun from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Finally, Guggenheim initiated coverage on Ducommun in a research note on Friday, October 9th. They set a "buy" rating and a $246.00 target price for the company. Five analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $201.50.

Ducommun Stock Performance

The company has a market cap of $2.36 billion, a price-to-earnings ratio of -83.46 and a beta of 1.03. The company has a debt-to-equity ratio of 0.39, a quick ratio of 2.38 and a current ratio of 3.36. The company has a fifty day moving average of $174.03 and a two-hundred day moving average of $165.35.

Ducommun (NYSE:DCO - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The aerospace company reported $1.18 earnings per share for the quarter, beating the consensus estimate of $0.98 by $0.20. Ducommun had a positive return on equity of 9.20% and a negative net margin of 3.10%. The company had revenue of $224.49 million during the quarter, compared to analysts' expectations of $214.32 million. During the same quarter in the prior year, the firm posted $0.88 earnings per share. The business's quarterly revenue was up 11.0% on a year-over-year basis. Equities research analysts anticipate that Ducommun Incorporated will post 4.26 EPS for the current year.

Insider Transactions at Ducommun

In other Ducommun news, CEO Stephen Oswald sold 2,500 shares of the stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $203.95, for a total value of $509,875.00. Following the sale, the chief executive officer directly owned 383,864 shares in the company, valued at $78,289,062.80. This represents a 0.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 5.00% of the company's stock.

Hedge Funds Weigh In On Ducommun

Institutional investors and hedge funds have recently made changes to their positions in the business. BlackRock Inc. purchased a new stake in shares of Ducommun in the 2nd quarter worth about $359,395,000. Paradigm Capital Management Inc. NY bought a new position in shares of Ducommun in the 2nd quarter worth approximately $142,704,000. Van ECK Associates Corp lifted its position in Ducommun by 68.4% during the second quarter. Van ECK Associates Corp now owns 427,603 shares of the aerospace company's stock valued at $79,196,000 after purchasing an additional 173,616 shares in the last quarter. Moore Capital Management LP bought a new stake in shares of Ducommun during the 2nd quarter valued at $44,236,000. Finally, Deutsche Bank AG bought a new position in Ducommun in the 2nd quarter worth approximately $41,095,000. Institutional investors own 92.15% of the company's stock.

Ducommun Company Profile

Ducommun Incorporated NYSE: DCO is a manufacturer of engineered components, assemblies and systems for the aerospace, defense and space industries. The company supplies products used in commercial aircraft, military platforms, launch vehicles, satellites and other mission-critical applications.

Its offerings include structural components and assemblies, precision-machined parts, composite structures, electronic and electromechanical systems, circuit-card assemblies, wire harnesses and other specialized products.

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