Ducommun (NYSE:DCO) Stock

Ducommun

Ducommun Inc provides engineering & manufacturing services for high-performance products & high-cost-of failure applications used primarily in the aerospace and defense, industrial, medical & other industries. The company's reportable segments are Structural Systems & Electronic Systems. Structural Systems designs, engineers and manufactures various sizes of complex contoured aerostructure components and assemblies and supplies composite and metal bonded structures and assemblies. Electronic Systems designs, engineers and manufactures high-reliability electronic and electromechanical products used in worldwide technology-driven markets including A&D and Industrial end-use markets. It generates maximum of its revenue from the Electronic Systems.

Ducommun Inc

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Ducommum shares are trading lower following a Q4 adjusted EPS miss.

Ducommun (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCO#NYSE">DCO</a>) reported quarterly earnings of $0.75 per share which missed the analyst consensus estimate of $0.81 by 7.41 percent. This is a 7.14 percent increase over earnings of $0.70 per share from the same period last year. The company reported quarterly sales of $197.29 million which beat the analyst consensus estimate of $195.58 million by 0.88 percent. This is a 2.63 percent increase over sales of $192.23 million the same period last year.

Earnings

Earnings Beats

Earnings Misses

News

Ducommun Q4 2024 Adj EPS $0.75 Misses $0.81 Estimate, Sales $197.29M Beat $195.58M Estimate

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Earnings Scheduled For February 27, 2025

Truist Securities analyst Michael Ciarmoli maintains Ducommun (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCO#NYSE">DCO</a>) with a Buy and raises the price target from $80 to $82.

Price Target

Analyst Ratings

Truist Securities Maintains Buy on Ducommun, Raises Price Target to $82

The commercial aerospace sector is gaining altitude, driven by surging demand for passenger travel, robust freight activity, and a <a href="https://www.benzinga.com/topic/expert-ideas">resurgence in aircraft orders</a>.
According to Goldman Sachs analyst Noah Poponak, CFA, air traffic recovery is exceeding expectations, with growth now outpacing GDP by more than double. 
The sector&#8217;s strong fundamentals, buoyed by tight supply chains and rising aftermarket revenues, are positioning key aerospace stocks for a significant takeoff.
Here&#8217;s what you need to know — and the top stocks analysts say you should have on your radar.
<h3 class="wp-block-heading">Air Traffic Surpasses Pre-Pandemic Levels</h3>
&#8220;The overall commercial aerospace market is fundamentally strong,&#8221; said Poponak in a note Thursday. 
Global passenger traffic continues its remarkable climb as international air traffic jumped 9% year-over-year (yoy) in September, following an 11% yoy increase in August, according to the International Air Transport Association (IATA). Passenger capacity rose in lockstep, up 9% and 10% yoy, respectively.
Goldman Sachs forecasts another 9% yoy gain for October based on airline reports. 
Forward airline schedules indicate that global passenger capacity will grow by 6% to 7% year-over-year through November, December, and January, reflecting sustained demand as travel appetite remains strong.
<h3 class="wp-block-heading">Freight Market Delivers Double-Digit Growth</h3>
The recovery isn't limited to passengers. International freight traffic surged 11% yoy in September, following a 12% yoy gain in August, with freight capacity expanding by 8% yoy in both months. 
Major cargo players FedEx Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) and United Parcel Service Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPS#NYSE">UPS</a>) also saw gains, with UPS reporting 11% yoy growth and FedEx posting a 3% yoy increase in global air cargo traffic.
<h3 class="wp-block-heading">Boeing, Airbus Rack Up Orders</h3>
Large commercial jet manufacturers are riding the wave of demand. In October alone, Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) secured 63 new orders, while Airbus SE (OTCPK: EADSY) booked 82 aircraft orders—both with zero cancellations. 
&#8220;New aircraft order campaigning activity appears to remain robust, for both growth and replacement,&#8221; Poponak wrote. 
Parked aircraft, which currently make up 11.8% of the total global fleet, remained flat month-over-month, further reflecting high utilization levels as airlines capitalize on the recovery in passenger and freight traffic.
<h3 class="wp-block-heading">Goldman Sachs' Top Stock Picks</h3>
Goldman Sachs&#8217; Poponak highlighted 11 buy-rated stocks that stand to benefit from the industry's resurgence. These include large aircraft manufacturers, component suppliers, and business jet producers.
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<td>Woodward Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WWD#NASDAQ">WWD</a>)</td>
<td>Aerospace Systems</td>
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<td>Boeing Co.</td>
<td>Large Aircraft</td>
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<td>TransDigm Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDG#NYSE">TDG</a>)</td>
<td>Aircraft Components</td>
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<td>GE Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>)</td>
<td>Engine Manufacturing</td>
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<td>HEICO Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HEI#NYSE">HEI</a>)</td>
<td>Aircraft Parts</td>
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<td>Howmet Aerospace Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HWM#NYSE">HWM</a>)</td>
<td>Aerospace Materials</td>
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<td>Ducommun Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCO#NYSE">DCO</a>)</td>
<td>Aerospace Electronics</td>
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<td>CAE Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAE#NYSE">CAE</a>)</td>
<td>Simulation &amp; Training</td>
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<td>Bombardier Inc. (OTCPK: BOMBF)</td>
<td>Business Jets</td>
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<td>Embraer S.A. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ERJ#NYSE">ERJ</a>)</td>
<td>Regional Aircraft</td>
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<td>Textron Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TXT#NYSE">TXT</a>) </td>
<td>Business Jets &amp; Helicopters</td>
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Among these, Woodward (WWD) is singled out for its placement on Goldman's &#8220;Conviction List,&#8221; while Boeing remains a flagship name for its leadership in large commercial jets.

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Aerospace Ready To Take Off: Goldman Sachs Reveals 11 Top Picks In The Sector

Ducommun shares are trading higher after the company reported better-than-expected Q3 financial results.

Ducommun (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCO#NYSE">DCO</a>) reported quarterly earnings of $0.99 per share which beat the analyst consensus estimate of $0.74 by 33.78 percent. The company reported quarterly sales of $201.41 million which beat the analyst consensus estimate of $194.10 million by 3.76 percent. This is a 2.63 percent increase over sales of $196.25 million the same period last year.

Ducommun Q3 2024 Adj EPS $0.99 Beats $0.74 Estimate, Sales $201.41M Beat $194.10M Estimate

Truist Securities analyst Michael Ciarmoli maintains Ducommun (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCO#NYSE">DCO</a>) with a Buy and lowers the price target from $72 to $71.

Truist Securities Maintains Buy on Ducommun, Lowers Price Target to $71

Goldman Sachs analyst Noah Poponak upgrades Ducommun (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCO#NYSE">DCO</a>) from Neutral to Buy and raises the price target from $64 to $80.

Upgrades

Goldman Sachs Upgrades Ducommun to Buy, Raises Price Target to $80

Truist Securities analyst Michael Ciarmoli reiterates Ducommun (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCO#NYSE">DCO</a>) with a Buy and raises the price target from $65 to $72.

Reiteration

Truist Securities Reiterates Buy on Ducommun, Raises Price Target to $72

Ducommun (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCO#NYSE">DCO</a>) reported quarterly earnings of $0.83 per share which beat the analyst consensus estimate of $0.60 by 38.33 percent. This is a 53.7 percent increase over earnings of $0.54 per share from the same period last year. The company reported quarterly sales of $197.000 million which beat the analyst consensus estimate of $194.567 million by 1.25 percent. This is a 5.17 percent increase over sales of $187.320 million the same period last year.

Ducommun Q2 2024 Adj. EPS $0.83 Beats $0.60 Estimate, Sales $197.000M Beat $194.567M Estimate

Ducommun Says It Remains Focused On Successfully Delivering Vision 2027 Strategy

Ducommun Rejects Albion River's Revised $65/Share Non-Binding Indication Of Interest; Says Offer Undervalues Its Mid- And Long-term Growth Initiatives

Ducommun Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCO#NYSE">DCO</a>) (&quot;Ducommun&quot; or the &quot;Company&quot;), a global supplier of innovative electronic systems and structural solutions for the aerospace and defense industry, confirmed today that on July 15, 2024, the Company&#39;s Board of Directors received an unsolicited revised non-binding indication of interest from Albion River LLC (&quot;Albion River&quot;), a private direct investment firm, to acquire all outstanding shares of Ducommun for&nbsp;$65.00&nbsp;per share in cash. 
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Consistent with its fiduciary duties and in consultation with its legal and financial advisors, the Board of Directors will carefully review and consider the revised proposal to determine if it is in the best interest of the Company and Ducommun&#39;s shareholders. The Company&#39;s shareholders do not need to take any action at this time and the Board has made no decision with respect to the Company&#39;s response to the indication of interest.
Ducommun has a rich 175-year history and is the oldest continuously operating company in California. In 2023, the Company&#39;s shareholders benefited from a year-over-year increase in market capitalization from&nbsp;$605M&nbsp;in 2022 to&nbsp;$760M. The Company also reached a new all-time revenue record of&nbsp;$757M&nbsp;in 2023.

Ducommun Receives $65 Per Share Acquisition Offer from Albion River LLC

Making a noteworthy insider sell on June 25, Stephen G Oswald, Chairman at Ducommun (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCO#NYSE">DCO</a>), is reported in the latest SEC filing.
What Happened: Oswald's recent move involves selling 2,000 shares of Ducommun. This information is documented in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0000030305/000095017024077404//Archives/edgar/data/30305/000095017024077404/0000950170-24-077404-index.htm">U.S. Securities and Exchange Commission</a> on Tuesday. The total value is $116,460.
Tracking the Wednesday's morning session, Ducommun shares are trading at $56.64, showing a down of 0.0%.
<h3>Unveiling the Story Behind Ducommun</h3>
Ducommun Inc provides engineering &amp; manufacturing services for high-performance products &amp; high-cost-of failure applications used primarily in the aerospace and defense, industrial, medical &amp; other industries. The company's reportable segments are Structural Systems &amp; Electronic Systems. Structural Systems designs, engineers and manufactures various sizes of complex contoured aerostructure components and assemblies and supplies composite and metal bonded structures and assemblies. Electronic Systems designs, engineers and manufactures high-reliability electronic and electromechanical products used in worldwide technology-driven markets including A&amp;D and Industrial end-use markets. It generates maximum of its revenue from the Electronic Systems.
<h3>Breaking Down Ducommun's Financial Performance</h3>
Revenue Growth: Ducommun's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 5.33%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Navigating Financial Profits:
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Gross Margin: The company shows a low gross margin of 24.6%, suggesting potential challenges in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Ducommun's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.47.
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Debt Management: Ducommun's debt-to-equity ratio surpasses industry norms, standing at 0.45. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Analyzing Market Valuation:
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Price to Earnings (P/E) Ratio: Ducommun's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 48.0.
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Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.08, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): The company's EV/EBITDA ratio of 15.09 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
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Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
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<h3>The Relevance of Insider Transactions</h3>
It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down. 
<h3>Exploring Key Transaction Codes</h3>
When it comes to transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000030305">Check Out The Full List Of Ducommun's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Trading Ideas

Massive Insider Trade At Ducommun

Goldman Sachs analyst Noah Poponak maintains Ducommun (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCO#NYSE">DCO</a>) with a Neutral and raises the price target from $57 to $64.

Goldman Sachs Maintains Neutral on Ducommun, Raises Price Target to $64

Ducommun (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCO#NYSE">DCO</a>) reported quarterly earnings of $0.70 per share which beat the analyst consensus estimate of $0.57 by 22.81 percent. This is a 11.11 percent increase over earnings of $0.63 per share from the same period last year. The company reported quarterly sales of $190.847 million which beat the analyst consensus estimate of $189.222 million by 0.86 percent. This is a 5.33 percent increase over sales of $181.191 million the same period last year.

Ducommun Q1 2024 Adj EPS $0.70 Beats $0.57 Estimate, Sales $190.847M Beat $189.222M Estimate

Albion Has Continued to Increase Equity Holdings in Ducommun
Today, Albion River LLC issued the following statement:
"Albion River LLC's affiliate Ignium LP ("Albion") continues to acquire shares in Ducommun Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCO#NYSE">DCO</a>) ("Ducommun" or the "Company") and now owns over 9.2% of the Company's outstanding shares.1 Albion owns more shares in Ducommun than all of management and the Board of Directors combined.
Ducommun's stock hit a 52-week high once Albion's bid was disclosed by the Company. Since then, Ducommun has dropped 11% following the Company's declaration it "is not for sale".2 Respectfully, this decision rightfully resides with the owners of the Company, the shareholders.
Albion would like to thank the numerous key stakeholders who have reached out to express their support in our efforts to acquire Ducommun. The Board of Directors has an obligation to evaluate all offers for the Company. Albion encourages management to disclose other offers it may have received that the Board of Directors and public may not be aware of.
The Company's press release in response to Albion's bid reflects a belief that $60 / share does not represent fair value. Therefore, consistent with executive compensation best practice, the Company's Board of Directors should ensure any new stock-based compensation be converted to options at a $60 strike price to limit shareholder dilution and further align management to maximizing shareholder value. Planned stock issuances below $60 are inconsistent with the Company's stated position as of April 16th.
Albion continues to believe that public markets are not an appropriate setting for Ducommun to execute its strategy and maximize shareholder value. We are committed long-term shareholders of the Company and intend to make our case directly to shareholders in due time.
We look forward to engaging with shareholders and members of the Board of Directors at the upcoming Annual General Meeting on April 24th."

Management

Albion River Comments On Recent Statement From Ducommun Board; Albion Has Continued To Increase Equity Holdings In Ducommun Now Owns Over 9.2% Of The Company

Proposal undervalues Ducommun and does not fully reflect the Company's proven, long-term growth initiatives.&nbsp;Ducommun's Board and Management remain focused on successfully delivering our Vision 2027 Strategy.

Ducommun Rejects Unsolicited, Non-Binding Indication Of Interest From Albion River To Acquire All Outstanding Shares Of Company For $60/Share In Cash

These two awards represent a&nbsp;$25M&nbsp;follow on order for one circuit card assembly already in production, along with another&nbsp;$25M&nbsp;order for one circuit card assembly that will be brand new production for DCO. All cards will be produced at Ducommun&#39;s world-class engineering and manufacturing performance center for circuit cards assemblies in Tulsa, Oklahoma.

Contracts

Ducommun Reveals Two Major Awards Totaling Over $50M In Revenue For The Raytheon SPY-6 Family Of Radar Systems

Press Releases

Ducommun Incorporated Celebrates 175th Anniversary by Ringing the Closing Bell at the New York Stock Exchange

Ducommun Incorporated Announces Third Quarter Conference Call

Ducommun Incorporated Reports Third Quarter 2024 Results

Ducommun Appoints Daniel G. Korte and Daniel L. Boehle to its Board of Directors

Ducommun to Participate in Goldman Sachs Industrials and Materials Conference

Ducommun Incorporated named Gold 'Partner2Win' Medallion Winner by BAE Systems at its Sixth Annual 'Partner2Win' Supplier Symposium

Ducommun Incorporated Announces Award of Patriot Conduit Harness Order from Bayern-Chemie GmbH

Ducommun Incorporated Donates Funds to Los Angeles County Wildfire Relief Efforts

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