Ducommun (NYSE:DCO) Sets New 1-Year High – Still a Buy?

Ducommun Incorporated (NYSE:DCO)’s stock price reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $156.38 and last traded at $155.6630, with a volume of 249096 shares traded. The stock had previously closed at $150.04.

Analysts Set New Price Targets

Several research analysts have weighed in on DCO shares. The Goldman Sachs Group upped their price target on Ducommun from $134.00 to $151.00 and gave the stock a “buy” rating in a research note on Monday, April 20th. Citigroup lifted their price target on shares of Ducommun from $141.00 to $167.00 and gave the company a “buy” rating in a report on Monday, May 18th. B. Riley Financial increased their price objective on shares of Ducommun from $155.00 to $187.00 and gave the company a “buy” rating in a report on Wednesday, May 13th. Royal Bank Of Canada boosted their target price on Ducommun from $150.00 to $155.00 and gave the stock an “outperform” rating in a research report on Wednesday, May 13th. Finally, Wall Street Zen cut Ducommun from a “buy” rating to a “hold” rating in a report on Monday, May 25th. Five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $162.00.

Ducommun Price Performance

The company has a current ratio of 3.67, a quick ratio of 2.59 and a debt-to-equity ratio of 0.44. The firm’s 50-day moving average price is $140.96 and its 200-day moving average price is $121.00. The stock has a market capitalization of $2.35 billion, a PE ratio of -65.96 and a beta of 1.06.

Ducommun (NYSE:DCO) last issued its quarterly earnings data on Tuesday, May 12th. The aerospace company reported $0.75 earnings per share for the quarter, topping the consensus estimate of $0.68 by $0.07. Ducommun had a positive return on equity of 8.41% and a negative net margin of 4.11%.The company had revenue of $209.02 million for the quarter, compared to analysts’ expectations of $199.61 million. During the same period in the previous year, the firm posted $0.83 earnings per share. The firm’s revenue for the quarter was up 7.7% on a year-over-year basis. On average, equities analysts forecast that Ducommun Incorporated will post 4.07 EPS for the current fiscal year.

Insider Activity

In related news, VP Rajiv A. Tata sold 1,612 shares of the stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $145.00, for a total value of $233,740.00. Following the sale, the vice president directly owned 33,171 shares of the company’s stock, valued at $4,809,795. This represents a 4.63% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Laureen S. Gonzalez sold 589 shares of the firm’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $151.99, for a total transaction of $89,522.11. Following the completion of the sale, the vice president directly owned 11,172 shares of the company’s stock, valued at approximately $1,698,032.28. The trade was a 5.01% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 7,883 shares of company stock valued at $1,200,336. 5.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Ducommun

Several hedge funds and other institutional investors have recently modified their holdings of DCO. Optiver Holding B.V. purchased a new stake in Ducommun in the first quarter worth $27,000. EverSource Wealth Advisors LLC grew its holdings in shares of Ducommun by 618.8% in the second quarter. EverSource Wealth Advisors LLC now owns 345 shares of the aerospace company’s stock worth $29,000 after purchasing an additional 297 shares during the last quarter. State of Wyoming bought a new position in shares of Ducommun in the first quarter worth about $35,000. Healthcare of Ontario Pension Plan Trust Fund purchased a new position in Ducommun in the 1st quarter worth about $56,000. Finally, Wealth Enhancement Advisory Services LLC bought a new stake in Ducommun during the 3rd quarter valued at about $63,000. 92.15% of the stock is currently owned by hedge funds and other institutional investors.

About Ducommun

Ducommun Incorporated, through its Electronics and Structures segments, provides engineered products and integrated systems for the global aerospace, defense and space markets. The Electronics segment focuses on high-reliability electronic assemblies, cable and wire harnesses, connector systems and harsh environment electronics for flight-critical applications. In the Structures segment, Ducommun manufactures complex metallic and composite components such as flight control surfaces, skin panels, heat exchangers and other aerostructures for commercial and military platforms.

Founded in 1849 in California as a hardware and stagecoach parts supplier, Ducommun expanded into aerospace manufacturing during World War II and has since grown its capabilities through targeted acquisitions and organic investments.