Valmont Industries (VMI) Upgraded to Hold at Zacks Investment Research

Valmont Industries (NYSE:VMI) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Monday.

According to Zacks, “Earnings estimates for Valmont for the fourth quarter have been stable lately. Valmont is looking to improve productivity and its overall cost structure through restructuring actions. It also remains focused on pursuing acquisitions and expand capacity to boost growth. The company has also outperformed the industry over the past three months. However, Valmont faces certain challenges in its irrigation business. Uncertainties surrounding the potential impacts of tariffs and trade policies along with low net farm income levels continue to cloud the outlook. The company's utility business also faces headwinds from a challenging wind market environment in Northern Europe and unfavorable product mix in North America.”

Other analysts have also recently issued research reports about the company. ValuEngine cut Valmont Industries from a “hold” rating to a “sell” rating in a report on Saturday, January 5th. Boenning Scattergood reaffirmed a “hold” rating on shares of Valmont Industries in a report on Wednesday, October 24th. Four equities research analysts have rated the stock with a hold rating, The stock currently has an average rating of “Hold” and an average target price of $165.00.

NYSE VMI traded down $0.80 during trading hours on Monday, hitting $130.15. The company had a trading volume of 4,514 shares, compared to its average volume of 110,215. Valmont Industries has a 52 week low of $103.01 and a 52 week high of $159.95. The company has a quick ratio of 2.40, a current ratio of 3.40 and a debt-to-equity ratio of 0.65. The company has a market cap of $2.89 billion, a P/E ratio of 18.64, a P/E/G ratio of 1.59 and a beta of 1.25.

Valmont Industries declared that its Board of Directors has authorized a share buyback plan on Wednesday, October 31st that permits the company to buyback $250.00 million in outstanding shares. This buyback authorization permits the industrial products company to repurchase up to 9.6% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s management believes its stock is undervalued.

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. PNC Financial Services Group Inc. increased its stake in Valmont Industries by 20.1% in the 4th quarter. PNC Financial Services Group Inc. now owns 1,402 shares of the industrial products company’s stock worth $156,000 after purchasing an additional 235 shares during the period. Jefferies Group LLC purchased a new position in Valmont Industries in the 3rd quarter worth approximately $210,000. Heritage Trust Co increased its stake in Valmont Industries by 19.7% in the 4th quarter. Heritage Trust Co now owns 2,393 shares of the industrial products company’s stock worth $266,000 after purchasing an additional 393 shares during the period. Dupont Capital Management Corp purchased a new position in Valmont Industries in the 4th quarter worth approximately $320,000. Finally, Dynamic Technology Lab Private Ltd purchased a new position in Valmont Industries in the 3rd quarter worth approximately $360,000. 91.92% of the stock is currently owned by 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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