UBS Recommends Buy on Vulcan Materials Despite Slight Price Target Drop
On November 7, 2024, UBS commenced coverage of Vulcan Materials (NYSE:VMC), issuing a Buy rating. This marks a significant endorsement from a major financial institution.
Analyst Predicts Minor Decline in Price Target
As of October 22, 2024, analysts have set the average one-year price target for Vulcan Materials at $280.46 per share. This forecast varies widely, with estimates ranging from a low of $170.81 to a high of $325.50. Despite this optimistic outlook, the average target suggests a 3.49% decrease from the most recent closing price of $290.61 per share.
Strong Revenue Growth Expected
Projected annual revenue for Vulcan Materials is estimated at $8.39 billion, reflecting a robust increase of 13.40%. Furthermore, the anticipated annual non-GAAP earnings per share (EPS) stands at 8.30.
Fund Investor Sentiment Remains Positive
Currently, 1,656 funds or institutions hold positions in Vulcan Materials, showcasing a slight increase of 3 investors (0.18%) over the last quarter. These funds allocate an average of 0.31% of their portfolios to VMC, representing an increase of 4.32%. Over the past three months, total shares owned by institutions have grown by 4.30%, reaching 149,108,000 shares. The put/call ratio for VMC reads at 0.63, hinting at a bullish outlook in the market.
Institutional Holdings Overview
Among the significant shareholders, State Farm Mutual Automobile Insurance retains 9,667,000 shares, holding 7.32% of the company, unchanged from last quarter. Massachusetts Financial Services currently owns 7,188,000 shares, representing a 5.44% stake, but has seen a 1.25% drop in ownership from the previous 7,277,000 shares, marking a 7.40% decrease in portfolio allocation for VMC.
JPMorgan Chase has increased its holdings, now with 6,325,000 shares, reflecting a 4.79% ownership after rising 21.69% from 4,953,000 shares previously. However, the firm reduced its portfolio allocation in VMC by a significant 82.31% this quarter. Principal Financial Group also holds 5,321,000 shares (4.03% ownership), up 16.63% from 4,436,000 shares but also reduced its portfolio allocation by 48.24%. Lastly, the Vanguard Total Stock Market Index Fund holds 4,172,000 shares (3.16% ownership), a modest increase of 0.43% from 4,155,000 shares, while decreasing its portfolio weight by 11.01% in the last quarter.
About Vulcan Materials
(Company Overview)
Vulcan Materials Company is a key player in the construction industry, based in Birmingham, Alabama. As a member of the S&P 500 index, it is the largest producer of construction aggregates in the United States, specializing in crushed stone, sand, and gravel. The company also manufactures asphalt and ready-mixed concrete, establishing substantial influence in aggregates-based construction materials.
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