CreativeOne Wealth LLC has made a strategic investment by acquiring a new stake in Valmont Industries, Inc. (NYSE: VMI) during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission, the institutional investor purchased 692 shares of the industrial products company’s stock, valued at approximately $226,000.
This move comes as other institutional investors and hedge funds have also adjusted their holdings in Valmont Industries. Notably, Prudential Financial Inc. significantly increased its stake by 216.3% during the same period, raising its total holdings to 11,254 shares, valued at around $3.8 million after acquiring an additional 7,696 shares.
American Century Companies Inc. also boosted its holdings in Valmont Industries by 36.2%, now owning 91,666 shares worth approximately $29.9 million. Franklin Resources Inc. increased its position by 2.7%, bringing its total to 525,890 shares valued at about $171.7 million. Legal & General Group Plc also expanded its position by 2.4%, now holding 43,811 shares worth $14.3 million. In a notable shift, Hillsdale Investment Management Inc. increased its holdings by 103.1%, ending up with 9,555 shares valued at around $3.1 million. Currently, approximately 87.84% of Valmont Industries’ stock is owned by hedge funds and institutional investors.
Insider Transactions and Stock Performance
In related news, insider James Christopher Colwell sold 375 shares of the company on October 23, 2023, at an average price of $410.68, amounting to a total transaction of $154,005. Following this sale, Colwell retains ownership of 7,286 shares valued at approximately $2.99 million, reflecting a 4.89% decrease in his ownership stake. Such transactions were disclosed in filings with the SEC.
Valmont Industries recently reported its earnings results for the third quarter on October 21, 2023. The company announced earnings per share (EPS) of $4.98, surpassing analysts’ expectations of $4.64 by $0.34. The company generated revenue of $1.05 billion, exceeding the forecasted $1.03 billion. Year-over-year, Valmont Industries experienced a 2.5% increase in revenue, up from $4.11 EPS in the same quarter last year. For fiscal year 2025, the company has provided guidance of $18.70-$19.50 EPS, while analysts predict an average of $18.07 EPS for the current fiscal year.
Dividend and Analyst Ratings
Valmont Industries also announced a quarterly dividend of $0.68 per share, scheduled for payment on January 15, 2024. Shareholders on record as of December 26, 2023, will receive this dividend, representing an annualized yield of 0.7% and a dividend payout ratio of 23.43%.
Several research firms have recently updated their outlooks on Valmont Industries. Stifel Nicolaus raised its price target from $400.00 to $450.00 and maintained a “buy” rating. DA Davidson similarly increased its target from $400.00 to $415.00 with a “neutral” rating. Additionally, Wall Street Zen upgraded its rating from “hold” to “buy,” while Weiss Ratings reaffirmed a “hold (c+)” rating. JPMorgan Chase & Co. initiated coverage with an “overweight” rating and a price target of $480.00. Currently, three analysts rate the stock as a “buy,” while two maintain a “hold,” resulting in a consensus rating of “Moderate Buy” and a target price of $448.33 according to MarketBeat.
Valmont Industries, Inc. manufactures products and services for infrastructure and agriculture sectors across the United States and internationally, including in Australia and Brazil. The company operates in two key segments: Infrastructure and Agriculture, focusing on manufacturing and distributing steel and other materials for various applications.
