Vulcan Materials (NYSE:VMC) Shares Break Below 200-Day Moving Average - Time to Sell?

Key Points

• Shares slipped below the 200-day moving average: Vulcan Materials traded as low as $276.70 and last changed hands at $278.53, below the $279.63 average.
• Analyst sentiment remains moderately positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $311.94, based on 12 Buy, 9 Hold, and 1 Sell rating.
• Quarterly results were mixed: EPS of $2.83 narrowly beat estimates, while revenue of $2.18 billion fell short of expectations and declined 4.7% year over year. The company also declared a $0.52 quarterly dividend.

Shares of Vulcan Materials Company (NYSE:VMC - Get Free Report) crossed below its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of $279.63 and traded as low as $276.70. Vulcan Materials shares last traded at $278.5250, with a volume of 578,267 shares trading hands.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on VMC shares. Stifel Nicolaus lifted their target price on shares of Vulcan Materials from $320.00 to $342.00 and gave the company a "buy" rating in a research note on Monday, November 9th. JPMorgan Chase & Co. cut their price target on Vulcan Materials from $320.00 to $300.00 and set a "neutral" rating for the company in a research note on Tuesday, October 13th. Raymond James Financial decreased their price target on Vulcan Materials from $320.00 to $308.00 and set an "outperform" rating on the stock in a report on Friday, October 16th. Stephens boosted their price objective on Vulcan Materials from $285.00 to $315.00 and gave the company an "overweight" rating in a research report on Monday, November 2nd. Finally, BMO Capital Markets reaffirmed a "market perform" rating on shares of Vulcan Materials in a research note on Monday, September 21st. Twelve investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $311.94.

Vulcan Materials Stock Performance

The company has a debt-to-equity ratio of 0.47, a current ratio of 1.43 and a quick ratio of 0.96. The company has a market cap of $35.75 billion, a PE ratio of 32.96, a price-to-earnings-growth ratio of 2.89 and a beta of 0.99. The business has a fifty day simple moving average of $258.94 and a two-hundred day simple moving average of $279.63.

Vulcan Materials (NYSE:VMC - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The construction company reported $2.83 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.81 by $0.02. The business had revenue of $2.18 billion for the quarter, compared to the consensus estimate of $2.24 billion. Vulcan Materials had a return on equity of 13.03% and a net margin of 13.77%. The business's revenue was down 4.7% compared to the same quarter last year. During the same period last year, the business posted $2.84 EPS. Research analysts anticipate that Vulcan Materials Company will post 8.89 earnings per share for the current year.

Vulcan Materials Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, November 24th. Investors of record on Monday, November 9th will be issued a $0.52 dividend. The ex-dividend date of this dividend is Monday, November 9th. This represents a $2.08 dividend on an annualized basis and a yield of 0.7%. Vulcan Materials's dividend payout ratio is presently 24.62%.

Insiders Place Their Bets

In other Vulcan Materials news, Director J. Hill sold 28,000 shares of the stock in a transaction that occurred on Tuesday, November 3rd. The stock was sold at an average price of $285.40, for a total transaction of $7,991,200.00. Following the transaction, the director owned 30,209 shares in the company, valued at approximately $8,621,648.60. This represents a 48.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.65% of the company's stock.

Institutional Trading of Vulcan Materials

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Burkett Financial Services LLC acquired a new stake in Vulcan Materials in the 2nd quarter valued at $25,000. Meeder Asset Management Inc. lifted its holdings in Vulcan Materials by 71.7% during the first quarter. Meeder Asset Management Inc. now owns 103 shares of the construction company's stock valued at $28,000 after purchasing an additional 43 shares in the last quarter. Clearstead Trust LLC purchased a new position in Vulcan Materials during the second quarter valued at $37,000. Mowery & Schoenfeld Wealth Management LLC acquired a new stake in Vulcan Materials in the 2nd quarter worth about $51,000. Finally, Western Wealth Management LLC acquired a new stake in shares of Vulcan Materials in the first quarter worth approximately $57,000. 90.39% of the stock is currently owned by hedge funds and other institutional investors.

Vulcan Materials Company Profile

Vulcan Materials Company is a U.S.-based producer of construction materials, with its core business focused on aggregates such as crushed stone, sand and gravel. These materials are used in roads, buildings and other infrastructure projects. The company also produces asphalt mix and ready-mixed concrete, serving customers in the construction and infrastructure industries. Its operations are concentrated across the southern and western United States, as well as parts of the Mid-Atlantic region. Founded in 1909 and headquartered in Birmingham, Alabama, Vulcan Materials has grown into one of the largest producers of construction aggregates in the United States.

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