The stock price of Vulcan Materials Co (NYSE: VMC) has dropped by -1.50 compared to previous close of 264.89. Despite this, the company has seen a fall of -6.18% in its stock price over the last five trading days. seekingalpha.com reported 2024-12-19 that Vulcan Materials, a leading construction aggregates supplier, shows strong long-term potential due to operational efficiency, pricing power, and strategic acquisitions like Wake Stone. Despite Q3’24 weather-related disruptions and weaker shipments, Vulcan expanded margins and increased free cash flow by 36% year to date. The company’s quasi-monopoly status and ability to raise prices yearly justify its premium valuation and make it a strong candidate for long-term investors.
Is It Worth Investing in Vulcan Materials Co (NYSE: VMC) Right Now?
Vulcan Materials Co (NYSE: VMC) has a higher price-to-earnings ratio of 41.09x compared to its average ratio, The 36-month beta value for VMC is at 0.83. Analysts have varying views on the stock, with 12 analysts rating it as a “buy,” 3 rating it as “overweight,” 7 as “hold,” and 1 as “sell.”
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The public float for VMC is 131.00M, and currently, shorts hold a 1.35% of that float. The average trading volume for VMC on December 20, 2024 was 867.73K shares.
VMC’s Market Performance
VMC’s stock has seen a -6.18% decrease for the week, with a -6.15% drop in the past month and a 3.52% gain in the past quarter. The volatility ratio for the week is 2.50%, and the volatility levels for the past 30 days are at 1.88% for Vulcan Materials Co. The simple moving average for the past 20 days is -7.13% for VMC’s stock, with a 0.59% simple moving average for the past 200 days.
Analysts’ Opinion of VMC
Many brokerage firms have already submitted their reports for VMC stocks, with UBS repeating the rating for VMC by listing it as a “Buy.” The predicted price for VMC in the upcoming period, according to UBS is $349 based on the research report published on November 07, 2024 of the current year 2024.
JP Morgan, on the other hand, stated in their research note that they expect to see VMC reach a price target of $270, previously predicting the price at $245. The rating they have provided for VMC stocks is “Neutral” according to the report published on March 22nd, 2024.
VMC Trading at -4.68% from the 50-Day Moving Average
After a stumble in the market that brought VMC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -12.53% of loss for the given period.
Volatility was left at 1.88%, however, over the last 30 days, the volatility rate increased by 2.50%, as shares sank -6.08% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +7.98% upper at present.
During the last 5 trading sessions, VMC fell by -6.18%, which changed the moving average for the period of 200-days by -2.40% in comparison to the 20-day moving average, which settled at $280.96. In addition, Vulcan Materials Co saw 14.94% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at VMC starting from Clement David P, who sale 887 shares at the price of $285.95 back on Nov 25 ’24. After this action, Clement David P now owns 773 shares of Vulcan Materials Co, valued at $253,638 using the latest closing price.
DAVID P CLEMENT, the Officer of Vulcan Materials Co, proposed sale 887 shares at $285.95 during a trade that took place back on Nov 25 ’24, which means that DAVID P CLEMENT is holding shares at $253,638 based on the most recent closing price.
Stock Fundamentals for VMC
Current profitability levels for the company are sitting at:
- 0.18 for the present operating margin
- 0.26 for the gross margin
The net margin for Vulcan Materials Co stands at 0.11. The total capital return value is set at 0.1. Equity return is now at value 11.14, with 5.89 for asset returns.
Based on Vulcan Materials Co (VMC), the company’s capital structure generated 0.3 points at debt to capital in total, while cash flow to debt ratio is standing at 0.43. The debt to equity ratio resting at 0.42. The interest coverage ratio of the stock is 8.39.
Currently, EBITDA for the company is 2.06 billion with net debt to EBITDA at 1.75. When we switch over and look at the enterprise to sales, we see a ratio of 5.12. The receivables turnover for the company is 7.27for trailing twelve months and the total asset turnover is 0.52. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.86.
Conclusion
In conclusion, Vulcan Materials Co (VMC) has had a mixed performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
