Zacks Investment Research Downgrades Douglas Dynamics (PLOW) to Strong Sell

Douglas Dynamics (NYSE:PLOW) was downgraded by Zacks Investment Research from a “buy” rating to a “strong sell” rating in a note issued to investors on Friday, Zacks.com reports.

According to Zacks, “Douglas Dynamics, Inc. designs, manufactures and sells snow and ice control equipment for light trucks, which is comprised of snowplows and sand and salt spreaders, and related parts and accessories. The Company sells its products under the WESTERN(R), FISHER(R) and BLIZZARD(R) brands through a distributor network, primarily consisting of truck equipment distributors located throughout the Midwest, East and Northeast regions of the United States as well as all provinces of Canada. It sells its products primarily to professional snowplowers who are contracted to remove snow and ice from commercial, municipal and residential areas. Douglas Dynamics, Inc. is headquartered in Milwaukee, Wisconsin. “

Several other analysts have also recently issued reports on PLOW. Craig Hallum raised their target price on Douglas Dynamics from $43.00 to $48.00 and gave the stock a “buy” rating in a research note on Wednesday, February 27th. TheStreet cut Douglas Dynamics from a “b” rating to a “c+” rating in a research note on Monday, May 6th.

Shares of NYSE:PLOW opened at $38.30 on Friday. Douglas Dynamics has a 12-month low of $33.54 and a 12-month high of $49.50. The stock has a market cap of $873.05 million, a PE ratio of 20.26 and a beta of 0.68. The company has a current ratio of 2.80, a quick ratio of 0.95 and a debt-to-equity ratio of 0.94.

Douglas Dynamics (NYSE:PLOW) last announced its quarterly earnings data on Monday, May 6th. The auto parts company reported $0.01 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.09) by $0.10. Douglas Dynamics had a return on equity of 16.34% and a net margin of 8.53%. The firm had revenue of $93.20 million for the quarter, compared to analysts’ expectations of $84.37 million. During the same period last year, the firm earned ($0.03) earnings per share. The company’s revenue for the quarter was up 11.0% compared to the same quarter last year. As a group, analysts anticipate that Douglas Dynamics will post 2.12 EPS for the current year.

In related news, Chairman James L. Janik sold 14,028 shares of the firm’s stock in a transaction dated Wednesday, March 6th. The stock was sold at an average price of $40.63, for a total value of $569,957.64. Following the sale, the chairman now directly owns 218,002 shares of the company’s stock, valued at $8,857,421.26. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Andrew Dejana bought 6,500 shares of the business’s stock in a transaction that occurred on Friday, March 15th. The stock was acquired at an average cost of $38.13 per share, for a total transaction of $247,845.00. Following the completion of the purchase, the insider now directly owns 10,630 shares of the company’s stock, valued at $405,321.90. The disclosure for this purchase can be found here. Insiders sold 21,830 shares of company stock worth $886,953 over the last three months. 2.60% of the stock is owned by insiders.

Institutional investors and hedge funds have recently modified their holdings of the business. First Hawaiian Bank lifted its holdings in Douglas Dynamics by 178.2% in the fourth quarter. First Hawaiian Bank now owns 829 shares of the auto parts company’s stock worth $30,000 after buying an additional 531 shares during the period. American Research & Management Co. purchased a new stake in Douglas Dynamics in the first quarter worth about $38,000. Quantamental Technologies LLC purchased a new stake in Douglas Dynamics in the first quarter worth about $50,000. Advisor Group Inc. lifted its holdings in Douglas Dynamics by 135.8% in the first quarter. Advisor Group Inc. now owns 1,844 shares of the auto parts company’s stock worth $71,000 after buying an additional 1,062 shares during the period. Finally, SG Americas Securities LLC purchased a new stake in Douglas Dynamics in the first quarter worth about $120,000. Institutional investors and hedge funds own 93.53% of the company’s stock.

Douglas Dynamics Company Profile

Douglas Dynamics, Inc operates as a manufacturer and upfitter of commercial work truck attachments and equipment primarily in North America. It operates in two segments, Work Truck Attachments and Work Truck Solutions. The Work Truck Attachments segment manufactures and sells snow and ice control attachments, including snowplows, and sand and salt spreaders for light and heavy duty trucks, as well as various related parts and accessories.

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