Valmont Industries (NYSE:VMI) Sees Unusually-High Trading Volume - Here's Why

Key Points

• Valmont Industries shares traded heavily, with 127,993 shares changing hands and the stock last trading at $467.16, below its prior close of $467.96.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $587. Recent targets range from $600 to $678, although Zacks downgraded the stock to “Hold.”
• The company exceeded quarterly expectations, reporting $6.14 in EPS and $1.12 billion in revenue, while year-over-year revenue rose 6.5%. Valmont also declared a quarterly dividend of $0.77 per share, representing a 0.7% yield.

Valmont Industries, Inc. (NYSE:VMI - Get Free Report) shares saw unusually-strong trading volume on Wednesday . 127,993 shares were traded during mid-day trading, a decline of 35% from the previous session's volume of 197,876 shares.The stock last traded at $467.1570 and had previously closed at $467.96.

Wall Street Analyst Weigh In

VMI has been the topic of a number of research reports. Oppenheimer set a $600.00 target price on shares of Valmont Industries and gave the stock an "outperform" rating in a report on Thursday, May 28th. Weiss Ratings upgraded shares of Valmont Industries from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday. Stifel Nicolaus upped their price target on Valmont Industries from $645.00 to $678.00 and gave the company a "buy" rating in a report on Monday, July 20th. Zacks Research downgraded Valmont Industries from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 20th. Finally, JPMorgan Chase & Co. lifted their target price on Valmont Industries from $600.00 to $620.00 and gave the stock an "overweight" rating in a report on Wednesday, July 22nd. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Valmont Industries currently has a consensus rating of "Moderate Buy" and a consensus price target of $587.00.

Valmont Industries Stock Performance

The firm's 50-day moving average price is $511.57 and its two-hundred day moving average price is $486.28. The company has a quick ratio of 1.55, a current ratio of 2.35 and a debt-to-equity ratio of 0.42. The firm has a market capitalization of $8.98 billion, a PE ratio of 18.11, a P/E/G ratio of 1.07 and a beta of 1.34.

Valmont Industries (NYSE:VMI - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The industrial products company reported $6.14 EPS for the quarter, topping analysts' consensus estimates of $5.80 by $0.34. Valmont Industries had a net margin of 11.70% and a return on equity of 25.57%. The firm had revenue of $1.12 billion during the quarter, compared to analyst estimates of $1.09 billion. During the same quarter last year, the business posted $4.88 EPS. The company's revenue was up 6.5% on a year-over-year basis. As a group, research analysts predict that Valmont Industries, Inc. will post 23.08 earnings per share for the current fiscal year.

Valmont Industries Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Friday, September 25th will be issued a dividend of $0.77 per share. The ex-dividend date is Friday, September 25th. This represents a $3.08 dividend on an annualized basis and a dividend yield of 0.7%. Valmont Industries's payout ratio is currently 11.99%.

Insider Buying and Selling at Valmont Industries

In related news, Director Theodor Werner Freye sold 800 shares of the stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $495.00, for a total value of $396,000.00. Following the completion of the sale, the director directly owned 2,805 shares of the company's stock, valued at approximately $1,388,475. This represents a 22.19% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO John L. Schwietz acquired 208 shares of the firm's stock in a transaction on Thursday, July 23rd. The shares were acquired at an average price of $486.14 per share, with a total value of $101,117.12. Following the completion of the transaction, the chief financial officer directly owned 2,992 shares in the company, valued at approximately $1,454,530.88. This trade represents a 7.47% increase in their position. The disclosure for this purchase is available in the SEC filing. 1.42% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Vanguard Personalized Indexing Management LLC boosted its stake in shares of Valmont Industries by 0.9% during the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 2,303 shares of the industrial products company's stock valued at $927,000 after buying an additional 21 shares during the period. Allen Capital Group LLC raised its holdings in shares of Valmont Industries by 2.2% during the fourth quarter. Allen Capital Group LLC now owns 1,130 shares of the industrial products company's stock worth $455,000 after acquiring an additional 24 shares in the last quarter. Public Employees Retirement System of Ohio boosted its position in Valmont Industries by 0.4% during the third quarter. Public Employees Retirement System of Ohio now owns 7,565 shares of the industrial products company's stock valued at $2,933,000 after purchasing an additional 29 shares during the last quarter. Rothschild Investment LLC boosted its position in Valmont Industries by 7.1% during the fourth quarter. Rothschild Investment LLC now owns 453 shares of the industrial products company's stock valued at $182,000 after purchasing an additional 30 shares during the last quarter. Finally, Balefire LLC grew its stake in Valmont Industries by 5.1% in the first quarter. Balefire LLC now owns 701 shares of the industrial products company's stock valued at $280,000 after purchasing an additional 34 shares in the last quarter. Institutional investors and hedge funds own 87.84% of the company's stock.

Valmont Industries Company Profile

Valmont Industries, Inc NYSE: VMI is a diversified industrial manufacturer specializing in infrastructure and agricultural products. Headquartered in Omaha, Nebraska, the company engages in the design, production and distribution of engineered products that support water management, power transmission, lighting and traffic infrastructure. Valmont's solutions range from center-pivot and lateral-move irrigation systems to utility poles, transmission towers, lighting structures and highway traffic signal support structures.

The company operates through several core business segments.

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