Wall Street Zen Upgrades Ducommun (NYSE:DCO) to Buy

Ducommun (NYSE:DCO) was upgraded by investment analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued on Saturday.

Several other research firms have also commented on DCO. Weiss Ratings lowered Ducommun from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, August 4th. Royal Bank Of Canada increased their target price on Ducommun from $175.00 to $200.00 and gave the stock a “sector performer” rating in a research note on Friday. Citigroup raised their target price on Ducommun from $167.00 to $216.00 and gave the company a “buy” rating in a report on Wednesday, July 1st. The Goldman Sachs Group lifted their target price on Ducommun from $134.00 to $151.00 and gave the company a “buy” rating in a research report on Monday, April 20th. Finally, Truist Financial boosted their price target on shares of Ducommun from $136.00 to $150.00 and gave the stock a “buy” rating in a research note on Tuesday, May 26th. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $180.80.

Ducommun Stock Performance

Shares of DCO stock opened at $196.43 on Friday. The company has a debt-to-equity ratio of 0.39, a quick ratio of 2.38 and a current ratio of 3.36. The firm has a market cap of $2.97 billion, a P/E ratio of -105.04 and a beta of 1.04. The firm’s 50 day moving average price is $171.49 and its 200-day moving average price is $145.18. Ducommun has a one year low of $84.76 and a one year high of $210.39.

Ducommun (NYSE:DCO) last posted its earnings results on Thursday, August 6th. The aerospace company reported $1.18 earnings per share for the quarter, beating the consensus estimate of $0.98 by $0.20. The firm had revenue of $224.49 million during the quarter, compared to the consensus estimate of $214.32 million. Ducommun had a negative net margin of 3.10% and a positive return on equity of 9.20%. The firm’s revenue for the quarter was up 11.0% on a year-over-year basis. During the same quarter last year, the firm earned $0.88 EPS. As a group, equities research analysts predict that Ducommun will post 4.19 EPS for the current year.

Insiders Place Their Bets

In other Ducommun news, VP Jerry L. Redondo sold 5,682 shares of the company’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $154.36, for a total transaction of $877,073.52. Following the completion of the sale, the vice president directly owned 62,034 shares of the company’s stock, valued at $9,575,568.24. This represents a 8.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, VP Rajiv A. Tata sold 1,612 shares of the company’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $145.00, for a total value of $233,740.00. Following the sale, the vice president owned 33,171 shares of the company’s stock, valued at $4,809,795. This trade represents a 4.63% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 7,883 shares of company stock valued at $1,200,336. Insiders own 5.00% of the company’s stock.

Institutional Investors Weigh In On Ducommun

A number of institutional investors have recently added to or reduced their stakes in DCO. BlackRock Inc. acquired a new position in Ducommun during the second quarter worth $359,395,000. Alliancebernstein L.P. lifted its holdings in Ducommun by 1,993.3% in the second quarter. Alliancebernstein L.P. now owns 302,969 shares of the aerospace company’s stock valued at $25,034,000 after acquiring an additional 288,496 shares during the period. Loomis Sayles & Co. L P acquired a new stake in Ducommun in the fourth quarter valued at $26,028,000. Deutsche Bank AG purchased a new stake in shares of Ducommun during the 2nd quarter worth $41,095,000. Finally, Diamond Hill Capital Management LLC Investment Advisor purchased a new stake in shares of Ducommun during the 2nd quarter worth $22,810,000. Hedge funds and other institutional investors own 92.15% of the company’s stock.

Key Ducommun News

Here are the key news stories impacting Ducommun this week:

• Positive Sentiment: Second-quarter adjusted earnings were $1.18 per share, exceeding the $0.98 consensus estimate and rising from $0.88 a year earlier. Revenue increased 11% year over year to $224.49 million, also ahead of expectations. Ducommun Q2 earnings report
• Positive Sentiment: Management highlighted record revenue and gross margin, while remaining performance obligations reached an all-time high. The backlog provides greater visibility into future aerospace and defense sales. Ducommun second-quarter results
• Positive Sentiment: Growth in engineered products and strong missile-related demand were identified as key drivers of the quarterly outperformance, supporting the company’s exposure to defense and aerospace programs. DCO Q2 deep dive
• Neutral Sentiment: Royal Bank of Canada raised its price target from $175 to $200 but maintained a “sector performer” rating. The new target represents only about 1.8% potential upside based on the reference price, suggesting analysts see fairly limited near-term appreciation. RBC Ducommun price target update
• Negative Sentiment: Despite the earnings beat, Ducommun continues to report a negative net margin, and its elevated valuation—reflected in a price-to-earnings ratio below zero—could make the stock sensitive to profit-taking after its substantial run toward the 12-month high.

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.