Preformed Line Products (NASDAQ:PLPC) Stock Breaks Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• PLPC shares fell below their 200-day moving average, reaching $352.22 before last trading at $369.68, down 1.5%; the 50-day average is significantly higher at $416.76.
• Despite the technical weakness, analysts maintain a “Strong Buy” consensus, although the average price target of $275 is below the current share price.
• The company recently exceeded quarterly earnings and revenue estimates, while declaring a $0.21-per-share quarterly dividend; insiders own 33% of the stock, and a director recently sold 2,000 shares.

Preformed Line Products Company (NASDAQ:PLPC - Get Free Report) shares passed below its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $373.15 and traded as low as $352.22. Preformed Line Products shares last traded at $369.68, with a volume of 67,522 shares trading hands.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. Weiss Ratings upgraded Preformed Line Products from a "hold (c+)" rating to a "buy (b)" rating in a report on Thursday, October 8th. Wall Street Zen upgraded Preformed Line Products from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 1st. Finally, Freedom Capital upgraded Preformed Line Products from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Strong Buy" and an average price target of $275.00.

Preformed Line Products Stock Down 1.5%

The business's fifty day moving average is $416.76 and its two-hundred day moving average is $373.15. The company has a market cap of $1.81 billion, a P/E ratio of 41.63 and a beta of 0.90. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.88 and a current ratio of 2.99.

Preformed Line Products (NASDAQ:PLPC - Get Free Report) last issued 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 for 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 business also recently declared a quarterly dividend, which will be paid on Tuesday, October 20th. Stockholders of record on Thursday, October 1st will be paid a dividend of $0.21 per share. This represents a $0.84 annualized dividend and a dividend yield of 0.2%. The ex-dividend date of this dividend is Thursday, October 1st. Preformed Line Products's payout ratio is currently 9.46%.

Insider Activity

In related news, Director Glen E. Corlett sold 2,000 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $457.02, for a total value of $914,040.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 33.00% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Nykredit A S bought a new stake in Preformed Line Products during the 2nd quarter valued at $30,000. Avalon Trust Co bought a new position in shares of Preformed Line Products during the 2nd quarter worth $82,000. Fifth Third Bancorp bought a new position in shares of Preformed Line Products during the 1st quarter worth $85,000. State of Wyoming bought a new position in shares of Preformed Line Products during the 2nd quarter worth $165,000. Finally, Odyssean LLC bought a new position in shares of Preformed Line Products during the 2nd quarter worth $216,000. 41.19% of the stock is currently owned by hedge funds and other institutional investors.

Preformed Line Products Company Profile

Preformed Line Products Company NASDAQ: PLPC designs and manufactures products and systems used to build, maintain and protect overhead and underground networks. Its customers include electric utilities, telecommunications providers, broadband operators, cable television companies and other infrastructure contractors.

The company's product portfolio includes formed-wire products for transmission and distribution lines, such as dead-end fittings, splices, suspension hardware, armor rods and vibration-control equipment.

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