Zacks Investment Research Downgrades Valmont Industries (VMI) to Sell

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Zacks Investment Research lowered shares of Valmont Industries (NYSE:VMI) from a hold rating to a sell rating in a report issued on Friday.

According to Zacks, “Valmont has underperformed the industry it belongs to over a year. Valmont faces certain challenges in its irrigation business. Uncertainties around potential impacts of tariffs and trade policies coupled with low net farm income levels are causing farmers to delay their irrigation purchase decisions in North America. The utility business also faces headwind from a challenging environment in Northern Europe and project delays.”

Other equities analysts have also issued research reports about the company. ValuEngine raised Valmont Industries from a sell rating to a hold rating in a research note on Wednesday, July 18th. Stifel Nicolaus increased their target price on Valmont Industries from $135.00 to $145.00 and gave the company a hold rating in a research note on Wednesday, July 25th. Boenning Scattergood lowered Valmont Industries from an outperform rating to a neutral rating in a research note on Friday, July 13th. Finally, TheStreet lowered Valmont Industries from a b- rating to a c+ rating in a research note on Thursday, October 4th. Two equities research analysts have rated the stock with a sell rating and three have given a hold rating to the company. The stock has an average rating of Hold and a consensus price target of $173.33.

Shares of VMI traded up $0.43 during trading hours on Friday, hitting $128.87. 107,095 shares of the stock traded hands, compared to its average volume of 104,956. The company has a quick ratio of 2.20, a current ratio of 2.83 and a debt-to-equity ratio of 0.64. Valmont Industries has a 1-year low of $126.85 and a 1-year high of $176.35. The firm has a market capitalization of $3.10 billion, a PE ratio of 18.49, a price-to-earnings-growth ratio of 1.97 and a beta of 1.00.

Valmont Industries (NYSE:VMI) last released its earnings results on Monday, July 23rd. The industrial products company reported $1.98 earnings per share for the quarter, beating the consensus estimate of $1.94 by $0.04. Valmont Industries had a return on equity of 13.89% and a net margin of 3.74%. The firm had revenue of $682.41 million for the quarter, compared to analyst estimates of $709.92 million. During the same quarter in the prior year, the firm posted $2.01 earnings per share. Analysts anticipate that Valmont Industries will post 7.61 EPS for the current year.

The business also recently announced a quarterly dividend, which will be paid on Monday, October 15th. Shareholders of record on Friday, September 28th will be paid a $0.375 dividend. This represents a $1.50 annualized dividend and a yield of 1.16%. The ex-dividend date of this dividend is Thursday, September 27th. Valmont Industries’s payout ratio is 21.52%.

In other Valmont Industries news, SVP John A. Kehoe sold 3,059 shares of the stock in a transaction dated Wednesday, September 12th. The stock was sold at an average price of $137.50, for a total value of $420,612.50. Following the transaction, the senior vice president now owns 2,911 shares of the company’s stock, valued at $400,262.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 3.00% of the company’s stock.

A number of large investors have recently added to or reduced their stakes in the business. BlackRock Inc. increased its holdings in shares of Valmont Industries by 1.6% in the second quarter. BlackRock Inc. now owns 1,906,460 shares of the industrial products company’s stock worth $287,400,000 after acquiring an additional 29,191 shares in the last quarter. Royce & Associates LP increased its holdings in shares of Valmont Industries by 1.7% in the second quarter. Royce & Associates LP now owns 691,958 shares of the industrial products company’s stock worth $104,313,000 after acquiring an additional 11,300 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Valmont Industries by 5.2% in the second quarter. Dimensional Fund Advisors LP now owns 583,093 shares of the industrial products company’s stock worth $87,901,000 after acquiring an additional 28,657 shares in the last quarter. FMR LLC increased its holdings in shares of Valmont Industries by 3.1% in the second quarter. FMR LLC now owns 307,020 shares of the industrial products company’s stock worth $46,283,000 after acquiring an additional 9,220 shares in the last quarter. Finally, King Luther Capital Management Corp increased its holdings in shares of Valmont Industries by 18.8% in the second quarter. King Luther Capital Management Corp now owns 261,812 shares of the industrial products company’s stock worth $39,468,000 after acquiring an additional 41,490 shares in the last quarter. 87.46% of the stock is currently owned by hedge funds and other institutional investors.

About Valmont Industries

Valmont Industries, Inc produces and sells fabricated metal products in the United States and internationally. It operates through four segments: Engineered Support Structures, Utility Support Structures, Coatings, and Irrigation. The Engineered Support Structures segment manufactures and distributes engineered metal, and composite structures and components for the lighting and traffic, wireless communication, and roadway safety industries.

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