Vulcan Materials (NYSE:VMC) Rating Lowered to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Vulcan Materials (VMC) from a "hold" to a "strong sell" in a note issued Wednesday.
• Analyst views are mixed — some firms (JPMorgan, Wall Street Zen, Wells Fargo) trimmed ratings or targets while Citigroup and Truist raised targets and issued buys; MarketBeat's consensus remains a Moderate Buy with a $326.29 target.
• Vulcan missed quarterly estimates (EPS $1.70 vs. $2.11 expected; revenue $1.91B vs. $1.95B expected) and the stock is trading around $263.61, below its 50-day and 200-day moving averages (~$303 and ~$297).

Vulcan Materials (NYSE:VMC - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Wednesday,Zacks.com reports.

A number of other analysts also recently commented on the company. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $320.00 target price (down from $335.00) on shares of Vulcan Materials in a research report on Wednesday, March 4th. Wall Street Zen cut Vulcan Materials from a "hold" rating to a "sell" rating in a research report on Saturday, February 21st. Wells Fargo & Company cut their price target on Vulcan Materials from $317.00 to $315.00 and set an "equal weight" rating for the company in a research note on Wednesday, February 18th. Citigroup boosted their price objective on shares of Vulcan Materials from $345.00 to $365.00 and gave the stock a "buy" rating in a research report on Monday, March 2nd. Finally, Truist Financial increased their price objective on shares of Vulcan Materials from $320.00 to $360.00 and gave the company a "buy" rating in a research note on Thursday, February 19th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Vulcan Materials currently has a consensus rating of "Moderate Buy" and a consensus target price of $326.29.

Vulcan Materials Price Performance

VMC stock opened at $263.61 on Wednesday. The firm has a 50 day moving average of $302.85 and a 200-day moving average of $296.95. Vulcan Materials has a 12-month low of $218.87 and a 12-month high of $331.09. The company has a current ratio of 2.69, a quick ratio of 1.97 and a debt-to-equity ratio of 0.51. The company has a market cap of $34.42 billion, a price-to-earnings ratio of 32.46, a PEG ratio of 1.99 and a beta of 1.05.

Vulcan Materials (NYSE:VMC - Get Free Report) last released its quarterly earnings results on Tuesday, February 17th. The construction company reported $1.70 earnings per share for the quarter, missing analysts' consensus estimates of $2.11 by ($0.41). Vulcan Materials had a return on equity of 12.56% and a net margin of 13.56%.The firm had revenue of $1.91 billion during the quarter, compared to analyst estimates of $1.95 billion. During the same quarter in the prior year, the company earned $2.17 EPS. The business's revenue was up 3.2% on a year-over-year basis. As a group, equities analysts expect that Vulcan Materials will post 8.69 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Melissa H. Anderson sold 1,137 shares of the stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $303.72, for a total transaction of $345,329.64. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 0.62% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Westside Investment Management Inc. lifted its holdings in shares of Vulcan Materials by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 84 shares of the construction company's stock worth $25,000 after acquiring an additional 42 shares during the period. NBT Bank N A NY purchased a new stake in Vulcan Materials in the fourth quarter valued at approximately $26,000. Greykasell Wealth Strategies Inc. acquired a new position in Vulcan Materials during the third quarter worth approximately $29,000. Birchwood Financial Partners Inc. acquired a new position in Vulcan Materials during the fourth quarter worth approximately $29,000. Finally, Godsey & Gibb Inc. purchased a new position in Vulcan Materials during the fourth quarter worth approximately $30,000. Institutional investors and hedge funds own 90.39% of the company's stock.

Vulcan Materials Company Profile

Vulcan Materials Company NYSE: VMC is a U.S.-based producer of construction materials that supplies the building and infrastructure markets. The company's primary products include construction aggregates such as crushed stone, sand and gravel, as well as asphalt mixes and ready-mixed concrete. These materials are used in a wide range of projects including highways, commercial and residential construction, and public infrastructure.

Vulcan operates an integrated network of quarries, asphalt plants and concrete facilities to produce and deliver materials to contractors, municipalities and private developers.

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