Martin Marietta Materials (NYSE:MLM) Hits New 1-Year Low - Time to Sell?

Key Points

• Martin Marietta Materials fell to a new 52-week low of $502.36, below its 50-day and 200-day moving averages, amid a broader decline in the stock.
• Despite the price weakness, analysts maintain a “Moderate Buy” consensus, with an average price target of $667.53 versus the recent trading level near $503.
• The company exceeded quarterly earnings and revenue expectations, with revenue rising 21% year over year, and increased its quarterly dividend to $0.84 per share.

Martin Marietta Materials, Inc. (NYSE:MLM - Get Free Report) hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $502.36 and last traded at $503.20, with a volume of 912665 shares traded. The stock had previously closed at $511.98.

Analyst Ratings Changes

MLM has been the subject of several recent analyst reports. Berenberg Bank set a $556.00 price objective on shares of Martin Marietta Materials and gave the stock a "hold" rating in a research report on Tuesday, June 2nd. Wolfe Research set a $648.00 price target on shares of Martin Marietta Materials in a research report on Tuesday, August 4th. Oppenheimer initiated coverage on Martin Marietta Materials in a research report on Thursday, May 28th. They issued a "market perform" rating for the company. Stephens dropped their price objective on Martin Marietta Materials from $700.00 to $680.00 and set an "overweight" rating on the stock in a research note on Friday, July 31st. Finally, Raymond James Financial set a $660.00 target price on Martin Marietta Materials in a research note on Friday, July 31st. Twelve research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $667.53.

Martin Marietta Materials Stock Performance

The company has a market capitalization of $30.23 billion, a price-to-earnings ratio of 12.36, a P/E/G ratio of 2.22 and a beta of 1.10. The company has a 50 day moving average price of $550.13 and a 200 day moving average price of $582.57. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.73 and a current ratio of 1.41.

Martin Marietta Materials (NYSE:MLM - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The construction company reported $5.00 earnings per share for the quarter, topping analysts' consensus estimates of $4.76 by $0.24. The business had revenue of $1.95 billion for the quarter, compared to the consensus estimate of $1.87 billion. Martin Marietta Materials had a return on equity of 9.49% and a net margin of 36.73%.The firm's revenue for the quarter was up 21.0% on a year-over-year basis. During the same period in the prior year, the business earned $5.43 EPS. Equities research analysts predict that Martin Marietta Materials, Inc. will post 19.07 earnings per share for the current fiscal year.

Martin Marietta Materials Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 1st will be given a dividend of $0.84 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This is a positive change from Martin Marietta Materials's previous quarterly dividend of $0.83. This represents a $3.36 dividend on an annualized basis and a dividend yield of 0.7%. Martin Marietta Materials's payout ratio is currently 8.26%.

Hedge Funds Weigh In On Martin Marietta Materials

A number of large investors have recently modified their holdings of MLM. Bank of Nova Scotia bought a new stake in Martin Marietta Materials during the second quarter valued at $3,650,000. Northwestern Mutual Wealth Management Co. increased its stake in Martin Marietta Materials by 14,332.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 77,792 shares of the construction company's stock worth $48,438,000 after acquiring an additional 77,253 shares during the last quarter. Victory Capital Management Inc. increased its stake in Martin Marietta Materials by 51.8% in the 4th quarter. Victory Capital Management Inc. now owns 2,448,928 shares of the construction company's stock worth $1,524,853,000 after acquiring an additional 836,120 shares during the last quarter. Stephens Inc. AR raised its holdings in shares of Martin Marietta Materials by 11.2% in the 4th quarter. Stephens Inc. AR now owns 51,326 shares of the construction company's stock valued at $31,958,000 after acquiring an additional 5,150 shares in the last quarter. Finally, Gradient Investments LLC boosted its position in shares of Martin Marietta Materials by 18.6% during the 2nd quarter. Gradient Investments LLC now owns 49,559 shares of the construction company's stock valued at $28,581,000 after acquiring an additional 7,772 shares during the last quarter. 95.04% of the stock is currently owned by institutional investors.

About Martin Marietta Materials

Martin Marietta Materials, Inc NYSE: MLM is a leading producer of aggregates and heavy building materials serving the construction and infrastructure markets. The company operates quarries, sand and gravel pits, and other extraction sites to supply crushed stone, sand and gravel, and a range of value‑added products for use in roads, bridges, commercial and residential construction, and other civil engineering projects.

In addition to its core aggregates business, Martin Marietta manufactures and sells asphalt, ready‑mixed concrete and related materials and services.

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