Vulcan Materials (NYSE:VMC) Sets New 1-Year Low - Should You Sell?

Shares of Vulcan Materials (NYSE:VMC - Get Free Report) hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $224.09 and last traded at $225.07, with a volume of 336103 shares traded. The stock had previously closed at $235.17.

Wall Street Analysts Forecast Growth

VMC has been the subject of several research reports. Raymond James lowered their price objective on shares of Vulcan Materials from $298.00 to $295.00 and set an "outperform" rating for the company in a research report on Thursday, January 16th. Royal Bank of Canada increased their price objective on shares of Vulcan Materials from $269.00 to $286.00 and gave the stock a "sector perform" rating in a research report on Wednesday, February 19th. Morgan Stanley raised their target price on shares of Vulcan Materials from $295.00 to $300.00 and gave the company an "equal weight" rating in a research report on Monday, February 24th. Citigroup decreased their target price on shares of Vulcan Materials from $325.00 to $301.00 and set a "buy" rating for the company in a research report on Monday, January 6th. Finally, Stephens reaffirmed an "overweight" rating and issued a $325.00 target price on shares of Vulcan Materials in a research report on Thursday, January 2nd. Five equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. Based on data from MarketBeat, Vulcan Materials presently has a consensus rating of "Moderate Buy" and a consensus target price of $303.08.

Remove Ads

Vulcan Materials Stock Performance

The company has a debt-to-equity ratio of 0.60, a current ratio of 1.83 and a quick ratio of 2.02. The stock has a market cap of $29.26 billion, a price-to-earnings ratio of 32.33, a P/E/G ratio of 2.03 and a beta of 0.80. The company's fifty day simple moving average is $261.37 and its two-hundred day simple moving average is $261.33.

Vulcan Materials (NYSE:VMC - Get Free Report) last posted its earnings results on Tuesday, February 18th. The construction company reported $2.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.76 by $0.41. Vulcan Materials had a net margin of 12.30% and a return on equity of 12.83%. The firm had revenue of $1.85 billion during the quarter, compared to analyst estimates of $1.81 billion. During the same quarter in the prior year, the business posted $1.46 EPS. On average, analysts forecast that Vulcan Materials will post 8.69 earnings per share for the current year.

Vulcan Materials Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, March 24th. Investors of record on Monday, March 10th will be given a dividend of $0.49 per share. The ex-dividend date is Monday, March 10th. This represents a $1.96 annualized dividend and a yield of 0.89%. This is a positive change from Vulcan Materials's previous quarterly dividend of $0.46. Vulcan Materials's dividend payout ratio is presently 28.61%.

Hedge Funds Weigh In On Vulcan Materials

Several institutional investors have recently added to or reduced their stakes in VMC. Norges Bank bought a new position in Vulcan Materials during the fourth quarter valued at about $380,369,000. Principal Financial Group Inc. grew its position in Vulcan Materials by 19.9% during the third quarter. Principal Financial Group Inc. now owns 5,320,570 shares of the construction company's stock valued at $1,332,431,000 after buying an additional 884,580 shares during the period. Proficio Capital Partners LLC grew its position in Vulcan Materials by 28,529.4% during the fourth quarter. Proficio Capital Partners LLC now owns 523,631 shares of the construction company's stock valued at $134,694,000 after buying an additional 521,802 shares during the period. BNP Paribas Financial Markets grew its position in Vulcan Materials by 239.8% during the fourth quarter. BNP Paribas Financial Markets now owns 739,003 shares of the construction company's stock valued at $190,094,000 after buying an additional 521,508 shares during the period. Finally, Alkeon Capital Management LLC grew its position in Vulcan Materials by 54.1% during the fourth quarter. Alkeon Capital Management LLC now owns 1,282,001 shares of the construction company's stock valued at $329,769,000 after buying an additional 450,000 shares during the period. Institutional investors own 90.39% of the company's stock.

About Vulcan Materials

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.