Traders Buy High Volume of Call Options on Vulcan Materials (VMC)

Vulcan Materials (NYSE:VMC) was the recipient of unusually large options trading on Monday. Stock traders acquired 6,826 call options on the company. This is an increase of approximately 1,241% compared to the typical volume of 509 call options.

A number of institutional investors have recently made changes to their positions in VMC. Morgan Stanley boosted its stake in Vulcan Materials by 28.1% during the second quarter. Morgan Stanley now owns 6,119,088 shares of the construction company’s stock valued at $789,730,000 after buying an additional 1,341,129 shares during the last quarter. Fred Alger Management Inc. boosted its stake in Vulcan Materials by 56.3% during the second quarter. Fred Alger Management Inc. now owns 2,644,635 shares of the construction company’s stock valued at $341,317,000 after buying an additional 952,138 shares during the last quarter. Millennium Management LLC lifted its stake in shares of Vulcan Materials by 210.9% in the 2nd quarter. Millennium Management LLC now owns 1,214,210 shares of the construction company’s stock valued at $156,706,000 after purchasing an additional 823,657 shares during the last quarter. Massachusetts Financial Services Co. MA lifted its stake in shares of Vulcan Materials by 19.2% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 3,499,127 shares of the construction company’s stock valued at $389,102,000 after purchasing an additional 562,427 shares during the last quarter. Finally, Principal Financial Group Inc. lifted its stake in shares of Vulcan Materials by 35.3% in the 1st quarter. Principal Financial Group Inc. now owns 2,016,741 shares of the construction company’s stock valued at $230,251,000 after purchasing an additional 526,595 shares during the last quarter. 97.44% of the stock is owned by institutional investors.

VMC has been the subject of a number of recent analyst reports. DA Davidson set a $118.00 price objective on Vulcan Materials and gave the stock a “hold” rating in a research note on Thursday, October 11th. Zacks Investment Research lowered Vulcan Materials from a “hold” rating to a “strong sell” rating in a research note on Friday, October 12th. Bank of America lowered Vulcan Materials from a “buy” rating to a “neutral” rating and set a $130.00 price objective for the company. in a research note on Wednesday, July 25th. They noted that the move was a valuation call. Argus dropped their price objective on Vulcan Materials to $122.00 and set a “buy” rating for the company in a research note on Monday, August 20th. Finally, ValuEngine lowered Vulcan Materials from a “hold” rating to a “sell” rating in a research note on Monday, October 8th. Three investment analysts have rated the stock with a sell rating, two have issued a hold rating and seven have given a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus price target of $123.45.



Shares of Vulcan Materials stock opened at $84.20 on Tuesday. Vulcan Materials has a 12 month low of $82.52 and a 12 month high of $141.20. The company has a market cap of $11.69 billion, a P/E ratio of 27.70, a PEG ratio of 1.02 and a beta of 0.93. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.46 and a quick ratio of 0.96.

Vulcan Materials (NYSE:VMC) last announced its quarterly earnings results on Tuesday, July 31st. The construction company reported $1.23 EPS for the quarter, missing analysts’ consensus estimates of $1.37 by ($0.14). Vulcan Materials had a net margin of 15.72% and a return on equity of 9.46%. The firm had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.15 billion. During the same period in the previous year, the company posted $0.89 earnings per share. Vulcan Materials’s quarterly revenue was up 16.4% on a year-over-year basis. Research analysts predict that Vulcan Materials will post 4.06 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, December 7th. Investors of record on Wednesday, November 21st will be paid a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a yield of 1.33%. The ex-dividend date of this dividend is Tuesday, November 20th. Vulcan Materials’s payout ratio is presently 36.84%.

About Vulcan Materials

Vulcan Materials Company produces and supplies construction aggregates, asphalt mix, and ready-mixed concrete primarily in the United States. It operates through four segments: Aggregates, Asphalt, Concrete, and Calcium. The Aggregates segment provides crushed stone, sand and gravel, sand, and other aggregates; and related products and services for use in the construction and maintenance of highways, streets, and other public works, as well as in the construction of housing and commercial, industrial, and other nonresidential facilities.

Further Reading: Moving Average (MA)

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