Preformed Line Products (NASDAQ:PLPC) Shares Break Above 200 Day Moving Average - Time to Sell?

Key Points

• PLPC shares broke above their 200-day moving average, reaching $441.39 before trading at $423.33. The stock is up significantly relative to its $358.94 200-day average, while the consensus price target of $275 implies substantial downside.
• Preformed Line Products reported strong quarterly results, with EPS of $4.49 versus the $2.41 estimate and revenue of $212.68 million compared with the $193 million consensus.
• Analyst sentiment is mixed but averages a “Buy” rating; the company also declared a $0.21 quarterly dividend, while a director recently sold 2,000 shares at an average price of $457.02.

Preformed Line Products Company (NASDAQ:PLPC - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $358.94 and traded as high as $441.39. Preformed Line Products shares last traded at $423.33, with a volume of 68,162 shares trading hands.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on PLPC shares. Freedom Capital raised Preformed Line Products from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 4th. Weiss Ratings downgraded Preformed Line Products from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, September 18th. Finally, Wall Street Zen raised Preformed Line Products from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 1st. One investment analyst has rated the stock with a Strong Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $275.00.

Preformed Line Products Trading Down 1.5%

The company has a debt-to-equity ratio of 0.07, a current ratio of 2.99 and a quick ratio of 1.88. The stock's 50-day moving average is $403.41 and its two-hundred day moving average is $358.94. The company has a market cap of $2.07 billion, a P/E ratio of 47.67 and a beta of 0.93.

Preformed Line Products (NASDAQ:PLPC - Get Free Report) last posted its earnings results on Wednesday, July 29th. The technology company reported $4.49 EPS for the quarter, topping analysts' consensus estimates of $2.41 by $2.08. The business had revenue of $212.68 million during the quarter, compared to the consensus estimate of $193.00 million. Preformed Line Products had a net margin of 5.82% and a return on equity of 10.64%.

Preformed Line Products Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 20th. Investors of record on Thursday, October 1st will be issued a $0.21 dividend. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $0.84 annualized dividend and a dividend yield of 0.2%. Preformed Line Products's payout ratio is presently 9.46%.

Insider Activity at Preformed Line Products

In related news, Director Glen E. Corlett sold 2,000 shares of the company's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $457.02, for a total transaction of $914,040.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 33.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Preformed Line Products

A number of large investors have recently made changes to their positions in PLPC. Wasatch Advisors LP lifted its stake in shares of Preformed Line Products by 234.3% in the 2nd quarter. Wasatch Advisors LP now owns 377,367 shares of the technology company's stock worth $154,932,000 after purchasing an additional 264,478 shares during the period. BlackRock Inc. purchased a new position in shares of Preformed Line Products in the second quarter worth approximately $93,241,000. HighTower Advisors LLC grew its position in Preformed Line Products by 4.8% during the second quarter. HighTower Advisors LLC now owns 1,014,731 shares of the technology company's stock valued at $416,608,000 after buying an additional 46,664 shares during the period. Ranger Investment Management L.P. bought a new stake in Preformed Line Products during the second quarter valued at approximately $7,940,000. Finally, Bank of New York Mellon Corp purchased a new stake in Preformed Line Products during the second quarter valued at approximately $7,582,000. 41.19% of the stock is currently owned by institutional investors.

Preformed Line Products Company Profile

Preformed Line Products Company NASDAQ: PLPC manufactures products and systems used to construct, maintain and improve overhead and underground networks. Its customers include electric utilities, telecommunications providers, cable operators and other infrastructure companies.

The company's offerings include products for transmission and distribution lines, substation and utility applications, communications networks, broadband and data infrastructure, and renewable-energy installations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.