Ducommun (NYSE:DCO) Rating Increased to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Ducommun (NYSE:DCO) from a hold rating to a buy rating in a research note released on Saturday.

Several other equities analysts have also weighed in on the stock. Citigroup increased their price objective on shares of Ducommun from $167.00 to $216.00 and gave the company a “buy” rating in a report on Wednesday, July 1st. Royal Bank Of Canada upped their target price on shares of Ducommun from $175.00 to $200.00 and gave the company a “sector performer” rating in a research report on Friday. The Goldman Sachs Group increased their price target on Ducommun from $134.00 to $151.00 and gave the company a “buy” rating in a research note on Monday, April 20th. Weiss Ratings lowered Ducommun from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday. Finally, Truist Financial lifted their price objective on 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 given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $180.80.

Ducommun Price Performance

Shares of DCO stock opened at $196.43 on Friday. The firm has a market cap of $2.96 billion, a price-to-earnings ratio of -105.04 and a beta of 1.04. Ducommun has a 12 month low of $84.76 and a 12 month high of $210.39. The company has a quick ratio of 2.59, a current ratio of 3.67 and a debt-to-equity ratio of 0.44. The stock has a 50-day moving average price of $171.49 and a 200 day moving average price of $144.97.

Ducommun (NYSE:DCO) last released its earnings results on Thursday, August 6th. The aerospace company reported $1.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.98 by $0.20. The company had revenue of $224.49 million for 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 9.31%. The company’s revenue was up 11.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.88 EPS. Research analysts expect that Ducommun will post 4.19 EPS for the current year.

Insider Buying and Selling

In related news, VP Laureen S. Gonzalez sold 589 shares of the business’s stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $151.99, for a total transaction of $89,522.11. Following the completion of the transaction, the vice president owned 11,172 shares in the company, valued at approximately $1,698,032.28. The trade was a 5.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Jerry L. Redondo sold 5,682 shares of the stock in a transaction 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 owned 62,034 shares in the company, valued at approximately $9,575,568.24. This trade represents a 8.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 7,883 shares of company stock valued at $1,200,336 in the last 90 days. 5.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Ducommun

Large investors have recently made changes to their positions in the stock. Optiver Holding B.V. bought a new stake in Ducommun in the 1st quarter valued at $27,000. EverSource Wealth Advisors LLC increased its holdings in Ducommun by 618.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 345 shares of the aerospace company’s stock worth $29,000 after purchasing an additional 297 shares in the last quarter. State of Wyoming bought a new position in Ducommun during the 1st quarter worth about $35,000. Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in shares of Ducommun in the 1st quarter valued at about $56,000. Finally, KBC Group NV acquired a new stake in shares of Ducommun in the 1st quarter valued at about $71,000. 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.

Ducommun Company Profile

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.