Preformed Line Products (NASDAQ:PLPC) Shares Up 10.5% - Still a Buy?

Key Points

• PLPC shares rose 10.5% to about $307.94, though trading volume was 33% below its average. The stock’s move put it above the analyst consensus price target of $275.
• Analyst sentiment remains positive, with a consensus “Strong Buy” rating from two analysts after recent upgrades, despite one firm slightly downgrading its buy rating.
• Preformed Line Products reported quarterly EPS of $3.56, beating estimates of $3.37, while revenue of $209.5 million fell short of the $215 million consensus. The company also pays a $0.21 quarterly dividend, yielding about 0.3%.

Preformed Line Products Company (NASDAQ:PLPC - Get Free Report) shot up 10.5% during trading on Tuesday. The stock traded as high as $307.50 and last traded at $307.94. Approximately 76,012 shares changed hands during mid-day trading, a decline of 33% from the average daily volume of 113,442 shares. The stock had previously closed at $278.68.

Wall Street Analyst Weigh In

A number of research firms have weighed in on PLPC. Freedom Capital upgraded shares of Preformed Line Products from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 4th. Weiss Ratings lowered shares of Preformed Line Products from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, October 23rd. Finally, Wall Street Zen raised shares of Preformed Line Products from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 1st. One analyst has rated the stock with a Strong Buy rating and one has given a Buy rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Strong Buy" and an average price target of $275.00.

Preformed Line Products Price Performance

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 has a market capitalization of $1.51 billion, a price-to-earnings ratio of 25.86 and a beta of 0.90. The stock has a 50 day moving average price of $389.15 and a 200-day moving average price of $341.97.

Preformed Line Products (NASDAQ:PLPC - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The technology company reported $3.56 EPS for the quarter, beating the consensus estimate of $3.37 by $0.19. The firm had revenue of $209.50 million during the quarter, compared to the consensus estimate of $215.00 million. Preformed Line Products had a return on equity of 12.16% and a net margin of 7.58%.

Preformed Line Products Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, October 20th. Stockholders of record on Thursday, October 1st were issued a dividend of $0.21 per share. The ex-dividend date of this dividend was Thursday, October 1st. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.3%. Preformed Line Products's dividend payout ratio is presently 7.05%.

Insider Activity at Preformed Line Products

In other news, Director Glen E. Corlett sold 2,000 shares of the firm's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $457.02, for a total value of $914,040.00. The transaction was disclosed in a filing with the SEC, which is available through this link. 33.00% of the stock is owned by company insiders.

Institutional Trading of Preformed Line Products

Several large investors have recently bought and sold shares of PLPC. Nykredit A S acquired a new stake in shares of Preformed Line Products during the 2nd quarter worth approximately $30,000. Sterling Capital Management LLC lifted its holdings in Preformed Line Products by 844.4% in the third quarter. Sterling Capital Management LLC now owns 85 shares of the technology company's stock valued at $35,000 after acquiring an additional 76 shares during the last quarter. Heritage Family Offices LLP acquired a new position in Preformed Line Products in the third quarter valued at approximately $44,000. IFP Advisors Inc lifted its holdings in Preformed Line Products by 142.5% in the third quarter. IFP Advisors Inc now owns 194 shares of the technology company's stock valued at $79,000 after acquiring an additional 114 shares during the last quarter. Finally, Avalon Trust Co acquired a new position in Preformed Line Products in the second quarter valued at approximately $82,000. Hedge funds and other institutional investors own 41.19% of the company's stock.

About Preformed Line Products

Preformed Line Products Company NASDAQ: PLPC designs and manufactures products and systems used to construct, maintain and protect overhead and underground networks. The company serves the telecommunications, energy, data communications, cable television, renewable energy and transportation markets.

Its product portfolio includes formed-wire products, fiber-optic cable hardware, connectors, splicing and closure systems, protective devices, enclosures and other network-infrastructure components.

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.