Vulcan Materials (NYSE:VMC) Hits New 1-Year High - Still a Buy?

Key Points

• Vulcan Materials reached a new 52-week high of $310.50, up from a previous close of $302.75, with a trading volume of 351,798 shares.
• Despite the stock hitting a high, Morgan Stanley has lowered its price target from $303.00 to $285.00, while Citigroup increased its target to $321.00, indicating mixed analyst ratings.
• The company has announced a quarterly dividend of $0.49, set to be paid on November 25th, reflecting a 0.6% dividend yield with a payout ratio of 27.37%.

Vulcan Materials Company (NYSE:VMC - Get Free Report) hit a new 52-week high on Tuesday . The company traded as high as $309.67 and last traded at $310.50, with a volume of 351798 shares trading hands. The stock had previously closed at $302.75.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Morgan Stanley lowered their price objective on Vulcan Materials from $303.00 to $285.00 and set an "equal weight" rating for the company in a research note on Monday, July 28th. Wells Fargo & Company upgraded Vulcan Materials to a "hold" rating in a research report on Wednesday, October 8th. Citigroup reiterated a "buy" rating and issued a $321.00 target price (up previously from $305.00) on shares of Vulcan Materials in a research report on Monday, August 4th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Vulcan Materials in a research report on Wednesday, October 8th. Finally, Royal Bank Of Canada decreased their target price on Vulcan Materials from $286.00 to $279.00 and set a "sector perform" rating for the company in a research report on Friday, August 1st. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, Vulcan Materials has an average rating of "Moderate Buy" and a consensus target price of $308.58.

Vulcan Materials Stock Up 2.1%

The firm has a 50 day simple moving average of $294.71 and a two-hundred day simple moving average of $271.82. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.13 and a current ratio of 1.67. The stock has a market cap of $40.84 billion, a P/E ratio of 43.17, a P/E/G ratio of 2.46 and a beta of 0.92.

Vulcan Materials (NYSE:VMC - Get Free Report) last announced its earnings results on Thursday, July 31st. The construction company reported $2.45 earnings per share for the quarter, missing the consensus estimate of $2.65 by ($0.20). The business had revenue of $2.10 billion for the quarter, compared to the consensus estimate of $2.23 billion. Vulcan Materials had a net margin of 12.52% and a return on equity of 12.81%. The firm's revenue was up 4.4% on a year-over-year basis. During the same period in the previous year, the firm earned $2.35 EPS. Equities research analysts predict that Vulcan Materials Company will post 8.69 earnings per share for the current year.

Vulcan Materials Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, November 25th. Investors of record on Monday, November 10th will be issued a $0.49 dividend. This represents a $1.96 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is Monday, November 10th. Vulcan Materials's payout ratio is presently 27.37%.

Insider Activity

In other news, SVP David P. Clement sold 698 shares of Vulcan Materials stock in a transaction on Friday, September 12th. The stock was sold at an average price of $298.56, for a total transaction of $208,394.88. Following the transaction, the senior vice president owned 2,832 shares in the company, valued at approximately $845,521.92. The trade was a 19.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.61% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Farther Finance Advisors LLC lifted its position in shares of Vulcan Materials by 70.3% in the third quarter. Farther Finance Advisors LLC now owns 1,798 shares of the construction company's stock worth $553,000 after buying an additional 742 shares during the last quarter. Confluence Investment Management LLC lifted its position in shares of Vulcan Materials by 10.7% in the third quarter. Confluence Investment Management LLC now owns 2,970 shares of the construction company's stock worth $914,000 after buying an additional 288 shares during the last quarter. Somerset Trust Co lifted its position in shares of Vulcan Materials by 3.3% in the third quarter. Somerset Trust Co now owns 2,438 shares of the construction company's stock worth $750,000 after buying an additional 77 shares during the last quarter. Brighton Jones LLC lifted its position in shares of Vulcan Materials by 13.8% in the third quarter. Brighton Jones LLC now owns 2,552 shares of the construction company's stock worth $785,000 after buying an additional 309 shares during the last quarter. Finally, Arthur M. Cohen & Associates LLC acquired a new stake in shares of Vulcan Materials in the third quarter worth about $215,000. Hedge funds and other institutional investors own 90.39% of the company's stock.

Vulcan Materials Company Profile

Vulcan Materials Company, together with its subsidiaries, produces and supplies construction aggregates primarily in the United States. It operates through four segments: Aggregates, Asphalt, Concrete, and Calcium. The company provides crushed stones, sand and gravel, sand, and other aggregates; and related products and services that are applied in construction and maintenance of highways, streets, and other public works, as well as in the construction of housing and commercial, industrial, and other nonresidential facilities.

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