Ducommun (NYSE:DCO) Stock Price Down 5.5% - Here's Why

Key Points

• Ducommun shares fell 5.5% to about $163.29 in mid-day trading, with volume down 93% versus the average daily level.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $192.60; recent firms raised targets as high as $209.
• The company recently beat quarterly expectations, reporting $1.18 in EPS versus $0.98 expected and revenue of $224.49 million, up 11% year over year.

Shares of Ducommun Incorporated (NYSE:DCO - Get Free Report) dropped 5.5% during mid-day trading on Tuesday . The company traded as low as $163.09 and last traded at $163.29. 16,245 shares changed hands during trading, a decline of 93% from the average daily volume of 221,373 shares. The stock had previously closed at $172.73.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on DCO shares. Weiss Ratings raised Ducommun from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, September 1st. 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 note on Thursday, August 13th. Wall Street Zen raised Ducommun from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Royal Bank Of Canada raised their price objective on Ducommun from $175.00 to $200.00 and gave the company a "sector performer" rating in a research note on Friday, August 7th. Finally, The Goldman Sachs Group reissued a "buy" rating on shares of Ducommun in a report on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $192.60.

Ducommun Price Performance

The company has a debt-to-equity ratio of 0.39, a current ratio of 3.36 and a quick ratio of 2.38. The firm has a market capitalization of $2.45 billion, a PE ratio of -86.71 and a beta of 1.04. The company has a 50-day moving average price of $180.07 and a 200-day moving average price of $156.81.

Ducommun (NYSE:DCO - Get Free Report) last announced its 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 negative net margin of 3.10% and a positive return on equity of 9.20%. The firm had revenue of $224.49 million during the quarter, compared to the consensus estimate of $214.32 million. During the same quarter in the previous year, the company posted $0.88 EPS. The firm's revenue for the quarter was up 11.0% on a year-over-year basis. Sell-side analysts forecast 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 Ducommun 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 completion of the sale, the chief executive officer directly owned 383,864 shares of the company's stock, valued at approximately $78,289,062.80. The trade was a 0.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 5.00% of the company's stock.

Institutional Investors Weigh In On Ducommun

Hedge funds and other institutional investors have recently made changes to their positions in the business. Allworth Financial LP acquired a new stake in Ducommun in the 2nd quarter worth about $26,000. Public Employees Retirement System of Ohio purchased a new position in shares of Ducommun during the 2nd quarter worth about $33,000. Optiver Holding B.V. acquired a new stake in shares of Ducommun in the first quarter worth approximately $27,000. State of Wyoming purchased a new stake in Ducommun in the first quarter valued at approximately $35,000. Finally, Nykredit A S acquired a new position in Ducommun during the second quarter worth approximately $55,000. Hedge funds and other institutional investors own 92.15% of the company's stock.

About Ducommun

Ducommun Incorporated is a diversified manufacturing company that provides engineered products and production services primarily for the aerospace and defense industries. The company supplies components and assemblies used in commercial aircraft, military platforms, space systems and other specialized applications.

Ducommun's Electronic Systems business produces electronic and electromechanical assemblies, interconnect systems, high-reliability components, RF and microwave products, and other systems used in avionics, communications, radar and defense applications.

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