Martin Marietta Materials Inc. (MLM) Cut to Sell at Zacks Investment Research
According to Zacks, “Robust pricing gains, its stable cost structure, synergies from the Texas Industries acquisition and higher infrastructure volumes bode well for growth at Martin Marietta, However, after strong first quarter results, Martin Marietta delivered lower than expected results in the second quarter – missing the Zacks Consensus Estimate for both earnings and sales. The company’s volumes in the quarter, chiefly Cement and Aggregates, were hurt by bad weather and project delays in key markets particularly Texas, North Carolina and Colorado. Though the company looks convinced to deliver solid results in the second half of the year, we await better visibility. The softening pricing trends in the Cement segment concerns us.”
Several other research firms have also recently issued reports on MLM. Jefferies Group restated a hold rating on shares of Martin Marietta Materials in a research report on Monday, August 1st. DA Davidson raised their price objective on shares of Martin Marietta Materials from $190.00 to $210.00 and gave the stock a buy rating in a research report on Wednesday, August 3rd. Alembic Global Advisors began coverage on shares of Martin Marietta Materials in a research report on Thursday, June 9th. They set an overweight rating and a $220.00 price objective for the company. Goldman Sachs Group Inc. restated a buy rating and set a $209.00 price objective (up from $191.00) on shares of Martin Marietta Materials in a research report on Wednesday, June 8th. Finally, Bank of America Corp. restated a buy rating on shares of Martin Marietta Materials in a research report on Friday, June 17th. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and six have given a buy rating to the company. The stock currently has a consensus rating of Buy and an average price target of $204.17.
Martin Marietta Materials (NYSE:MLM) traded down 1.29% during midday trading on Tuesday, hitting $176.15. 88,550 shares of the stock traded hands. The company’s 50-day moving average is $182.80 and its 200 day moving average is $182.96. The firm has a market cap of $11.17 billion, a P/E ratio of 31.38 and a beta of 1.36. Martin Marietta Materials has a 12-month low of $108.31 and a 12-month high of $206.36.
Martin Marietta Materials (NYSE:MLM) last issued its earnings results on Tuesday, August 2nd. The company reported $1.90 EPS for the quarter, missing the Zacks’ consensus estimate of $2.02 by $0.12. The business earned $915.40 million during the quarter, compared to analyst estimates of $953.30 million. Martin Marietta Materials had a net margin of 9.96% and a return on equity of 9.36%. Martin Marietta Materials’s quarterly revenue was up 7.7% on a year-over-year basis. During the same quarter last year, the company earned $1.22 earnings per share. On average, analysts anticipate that Martin Marietta Materials will post $7.14 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Friday, September 30th. Investors of record on Thursday, September 1st were paid a $0.42 dividend. This is an increase from Martin Marietta Materials’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend was Tuesday, August 30th. This represents a $1.68 annualized dividend and a yield of 0.94%. Martin Marietta Materials’s payout ratio is presently 30.05%.
In related news, EVP Roselyn R. Bar sold 5,830 shares of the business’s stock in a transaction dated Tuesday, August 9th. The shares were sold at an average price of $199.98, for a total value of $1,165,883.40. Following the completion of the transaction, the executive vice president now owns 42,588 shares of the company’s stock, valued at approximately $8,516,748.24. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director David G. Maffucci sold 6,779 shares of the business’s stock in a transaction dated Thursday, August 11th. The shares were sold at an average price of $199.90, for a total transaction of $1,355,122.10. Following the completion of the transaction, the director now directly owns 20,326 shares of the company’s stock, valued at approximately $4,063,167.40. The disclosure for this sale can be found here. 1.06% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently made changes to their positions in MLM. First American Bank increased its position in shares of Martin Marietta Materials by 0.5% in the third quarter. First American Bank now owns 10,655 shares of the company’s stock valued at $1,908,000 after buying an additional 50 shares during the last quarter. Kentucky Retirement Systems Insurance Trust Fund purchased a new position in shares of Martin Marietta Materials during the second quarter valued at $492,000. Kentucky Retirement Systems purchased a new position in shares of Martin Marietta Materials during the second quarter valued at $1,037,000. Mason Street Advisors LLC purchased a new position in shares of Martin Marietta Materials during the second quarter valued at $1,643,000. Finally, Northwestern Mutual Wealth Management Co. increased its position in shares of Martin Marietta Materials by 1.0% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 530 shares of the company’s stock valued at $101,000 after buying an additional 5 shares during the last quarter. 97.18% of the stock is owned by hedge funds and other institutional investors.
Martin Marietta Materials Company Profile
Martin Marietta Materials, Inc is a supplier of aggregates products (crushed stone, sand and gravel) for the construction industry, used for the construction of infrastructure, non-residential, and residential projects. The Company operates through three businesses: Aggregates Business, Cement Business and Magnesia Specialties Business.
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