Hudson Bay Capital Management LP has decreased its holdings in Vulcan Materials Company (NYSE: VMC) by 15% during the second quarter of 2023, as revealed in its latest Form 13F filing with the Securities and Exchange Commission. Following the sale of 7,840 shares, the fund now owns 44,480 shares of the construction materials company, valued at approximately $11.6 million.
Several other institutional investors have also adjusted their positions in Vulcan Materials recently. Brighton Jones LLC acquired a new stake in the company valued at about $497,000 during the fourth quarter. Kovitz Investment Group Partners LLC increased its ownership by 4.9% in the first quarter, bringing its total to 12,833 shares worth around $2.99 million after acquiring an additional 594 shares.
Aberdeen Group plc made a significant increase of 143.9% in its stake during the same period, now holding 106,540 shares valued at $24.61 million. American Century Companies Inc. boosted its holdings by 8.9%, owning 215,285 shares worth approximately $50.23 million. Additionally, Raymond James Financial Inc. increased its stake by 1.1%, with 293,949 shares valued at $68.58 million. Notably, institutional investors and hedge funds currently hold 90.39% of Vulcan Materials’ stock.
In related insider trading news, senior vice president David P. Clement sold 2,000 shares on November 19, 2023, at an average price of $288.55, totaling $577,100. Following this transaction, Clement retains 832 shares valued at approximately $240,073.60, representing a significant reduction in ownership of 70.62%.
Similarly, SVP Denson N. Franklin III sold 665 shares on December 10, 2023, at an average price of $295.00, amounting to $196,175. After this sale, Franklin III holds 8,284 shares valued at $2.44 million, reflecting a decrease of 7.43% in ownership. Collectively, insiders sold 13,336 shares valued at $3.91 million in the last quarter, with corporate insiders owning just 0.61% of the stock.
Vulcan Materials reported its quarterly earnings on October 30, 2023, announcing earnings of $2.84 per share, exceeding analysts’ expectations of $2.72 by $0.12. The company achieved a net margin of 14.19% and a return on equity of 13.47%, with revenue reaching $2.29 billion, slightly above the anticipated $2.28 billion. Year-on-year, revenue increased by 14.4%, with the previous year’s earnings per share recorded at $2.22. Analysts forecast an earnings per share of $8.69 for the current year.
In terms of dividends, Vulcan Materials announced a quarterly dividend of $0.49 per share, paid on November 25, 2023, to shareholders recorded as of November 10, 2023. This dividend translates to an annualized amount of $1.96 and a yield of 0.7%, with a payout ratio of 23.28%.
Several analysts have recently updated their ratings for Vulcan Materials. Stifel Nicolaus set a target price of $327.00, while Wells Fargo & Company upgraded the stock to a “hold” rating. Weiss Ratings reaffirmed a “buy (b)” rating, and JPMorgan Chase & Co. raised their target price from $330.00 to $340.00, giving the company an “overweight” rating. In contrast, Royal Bank of Canada reduced its target price from $279.00 to $278.00 with a “sector perform” rating.
Currently, two investment analysts rate Vulcan Materials as a Strong Buy, eleven maintain a Buy rating, and three have assigned a Hold rating. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” with a target price of $317.58.
Vulcan Materials Company, headquartered in the United States, specializes in the production and supply of construction aggregates. It operates through four primary segments: Aggregates, Asphalt, Concrete, and Calcium, providing essential materials for various construction projects, including highways, residential, and commercial infrastructure.
