Valmont Industries (NYSE:VMI) Trading Up 5.6% - Should You Buy?

Key Points

• Valmont Industries shares rose 5.6% in mid-day trading, reaching as high as $572.69 and last trading near $571.00, though volume was below average.
• Analyst sentiment remains mostly positive, with an average rating of “Moderate Buy” and an average target price of $525.25, even as one firm downgraded the stock to hold.
• The company posted strong recent results, beating quarterly EPS and revenue estimates, while also announcing a $0.77 quarterly dividend payable July 15.

Valmont Industries, Inc. (NYSE:VMI - Get Free Report)'s stock price was up 5.6% during mid-day trading on Tuesday . The company traded as high as $572.69 and last traded at $571.00. Approximately 147,958 shares were traded during trading, a decline of 23% from the average daily volume of 192,117 shares. The stock had previously closed at $540.62.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on VMI shares. Weiss Ratings cut Valmont Industries from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday. DA Davidson boosted their target price on Valmont Industries from $415.00 to $450.00 and gave the stock a "neutral" rating in a report on Wednesday, February 18th. JPMorgan Chase & Co. boosted their target price on Valmont Industries from $480.00 to $510.00 and gave the stock an "overweight" rating in a report on Wednesday, February 18th. Wall Street Zen raised Valmont Industries from a "buy" rating to a "strong-buy" rating in a research report on Sunday, May 31st. Finally, Oppenheimer set a $600.00 price target on Valmont Industries and gave the stock an "outperform" rating in a research report on Thursday, May 28th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $525.25.

Valmont Industries Stock Performance

The stock has a 50-day simple moving average of $491.13 and a 200-day simple moving average of $451.08. The company has a market capitalization of $11.06 billion, a price-to-earnings ratio of 31.63, a price-to-earnings-growth ratio of 1.26 and a beta of 1.34. The company has a current ratio of 2.38, a quick ratio of 1.59 and a debt-to-equity ratio of 0.47.

Valmont Industries (NYSE:VMI - Get Free Report) last announced its earnings results on Tuesday, April 21st. The industrial products company reported $5.51 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.72 by $0.79. Valmont Industries had a return on equity of 24.94% and a net margin of 8.91%.The company had revenue of $1.03 billion for the quarter, compared to analyst estimates of $994.85 million. During the same period in the prior year, the company posted $4.32 EPS. Valmont Industries's quarterly revenue was up 6.2% on a year-over-year basis. On average, analysts anticipate that Valmont Industries, Inc. will post 22.83 earnings per share for the current year.

Valmont Industries Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Friday, June 26th will be paid a dividend of $0.77 per share. This represents a $3.08 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date is Friday, June 26th. Valmont Industries's dividend payout ratio is presently 17.10%.

Insider Transactions at Valmont Industries

In other Valmont Industries news, Director Mogens C. Bay sold 17,500 shares of the business's stock in a transaction on Friday, April 24th. The stock was sold at an average price of $492.34, for a total transaction of $8,615,950.00. Following the completion of the transaction, the director owned 112,309 shares in the company, valued at approximately $55,294,213.06. The trade was a 13.48% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 1.42% of the company's stock.

Institutional Investors Weigh In On Valmont Industries

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Invesco Ltd. lifted its holdings in Valmont Industries by 8.3% in the 3rd quarter. Invesco Ltd. now owns 422,997 shares of the industrial products company's stock valued at $164,009,000 after acquiring an additional 32,382 shares during the last quarter. Earnest Partners LLC boosted its position in shares of Valmont Industries by 1.7% in the 3rd quarter. Earnest Partners LLC now owns 399,388 shares of the industrial products company's stock valued at $154,855,000 after purchasing an additional 6,799 shares during the period. Geode Capital Management LLC increased its stake in Valmont Industries by 3.5% in the 4th quarter. Geode Capital Management LLC now owns 369,059 shares of the industrial products company's stock worth $148,509,000 after purchasing an additional 12,480 shares in the last quarter. Sei Investments Co. increased its stake in Valmont Industries by 3.1% in the 3rd quarter. Sei Investments Co. now owns 290,948 shares of the industrial products company's stock worth $112,809,000 after purchasing an additional 8,715 shares in the last quarter. Finally, AQR Capital Management LLC increased its stake in Valmont Industries by 118.8% in the 3rd quarter. AQR Capital Management LLC now owns 282,610 shares of the industrial products company's stock worth $108,884,000 after purchasing an additional 153,418 shares in the last quarter. 87.84% of the stock is owned by institutional investors and hedge funds.

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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