Despite A Positive Growth Outlook, Ceredex Value Advisors LLC Acquires Valmont Industries, Inc.

According to its most recent Securities and Exchange Commission filing, Valmont Industries, Inc. (NYSE: VMI), a US-based industrial goods firm, has been the target of a recent investment by Ceredex Value Advisors LLC. Ceredex purchased a new holding in Valmont Industries during the fourth quarter, totaling 38,215 shares valued at about $12,657,000. At the end of the reporting quarter, Ceredex Value Advisors LLC owned approximately 0.18% of the company.

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Valmont Industries' most recent quarterly results report indicated that it produced sales of $1.13 billion for Q4, above the average estimate of $1.06 billion although missing analysts' EPS forecasts by $0.03 at $3.46 EPS vs $3.49 EPS estimates as of February 22nd.

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According to Trade Algo, many major equities analysts have weighed in on VMI shares and determined that Valmont Industries merits a "Moderate Buy" rating and an average target price of roughly $324 per share. These ratings came from a variety of sources, including StockNews.com, which rated it as a "buy," and DA Davidson, which ranked it as "neutral." Stifel Nicolaus was particularly optimistic about VMI and recently raised their price objective on shares of Valmont Industries from $385 to $389 while maintaining a "buy" rating in their research report released last Friday.

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Valmont Industries had maintained positive net margins close to 6% while maintaining remarkable return on equity rates until February of this year, when EPS missed forecasts, potentially tainting these figures and lowering investors' trust in its financials. Yet, the firm remains hopeful, with equities research experts anticipating an upward trajectory following its most recent performance as higher earnings are predicted, with EPS forecasts of 15.33 for the current fiscal year being forecasted.

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Overall, Valmont Industries remains a profitable investment prospect, especially with Ceredex Value Advisors LLC's recent acquisition of millions of dollars in company shares. As long as the company maintains its development trajectory and fixes the issues that caused it to fail Q4 profit estimates, industry experts remain optimistic about VMI's prospects, despite widespread anxiety in financial markets created by COVID-19 disruptions throughout the world.

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Institutional Investors and Hedge Funds Lead the Way for Valmont Industries

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Valmont Industries, a manufacturer of industrial equipment, has recently piqued the interest of institutional investors and hedge funds. During the fourth quarter, Exchange Traded Concepts LLC acquired a new investment in Valmont Industries valued at roughly $25,000. Other institutions that have increased their investments include Ellevest Inc., Nelson Van Denburg & Campbell Wealth Management Group LLC, TCI Wealth Advisors Inc., and Covestor Ltd.

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The increased popularity of Valmont among institutional investors and hedge funds is not unexpected given the company's outstanding track record, as seen by its Q4 2020 results, which exceeded expectations and resulted in a greater stock value. This was combined with the company's $6.76 billion market cap, P/E ratio of 27.24, lower-than-industry PEG ratio of 1.71, and a beta of 1.07.

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While the company's current ratio is 2.21 and its quick ratio is 1.31 - both of which indicate solid liquidity situations for paying forthcoming financial commitments and debts on short notice - several aspects must be examined before making any substantial investment choices.

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Some experts feel that Valmont Industries' stock should be purchased now because of its growth potential.

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Valmont began at $316.83 per share on Friday, with a fifty-day simple moving average (SMA) of $317.20 and a two-hundred-day SMA of $313.65.

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Several equities experts agree with this assessment.

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Valmont Industries' shares, with DA Davidson reiterating a "neutral" rating and Stifel Nicolaus raising their price objective from $385 to $389 per share, rating it as a "buy."

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Apart from these good performance indicators, the firm continues to pay quarterly dividends, with future payments likely to increase. While dividends are frequently regarded as an indication of stability and development by investors, other factors such as insider trading may also influence investor mood.

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Aaron M. Schapper, one of the company's top executives, recently sold 4,033 shares for $1,247,164.92, indicating that insiders may anticipate some internal difficulty or volatility with lowering stock value shortly. This transaction, however, represented only 2% of Valmont's shares held by insiders and was lawful.

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Valmont Industries' service offering is fairly diverse, with goods or applications connected to infrastructure development available through its numerous divisions such as Utility Support Structures (electric transmission towers), Lighting (street lamps), Irrigation, and Coatings, among others.

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It is hardly unexpected, however, that hedge funds are growing increasingly interested in the firm, given its remarkable track record of favorably contributing to North American infrastructure development. Finally, while equities are inherently volatile assets, advising ordinary investors on any direct action involves significant studies identifying possible risks and uncertainties. Having said that, investing interest from hedge funds may indicate an overall optimistic view regarding Valmont Industries' stock performance possibilities, but with prudence to mitigate against short-term market swings.

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