Goldman Sachs Maintains Martin Marietta Materials Buy Recommendation

Fintel reports that on July 17, 2023, Goldman Sachs maintained coverage of Martin Marietta Materials (NYSE:MLM) with a Buy recommendation.

Analyst Price Forecast Suggests 0.06% Upside

As of July 6, 2023, the average one-year price target for Martin Marietta Materials is 457.84. The forecasts range from a low of 353.50 to a high of $525.00. The average price target represents an increase of 0.06% from its latest reported closing price of 457.56.

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The projected annual revenue for Martin Marietta Materials is 6,418MM, an increase of 9.64%. The projected annual non-GAAP EPS is 15.42.

Martin Marietta Materials Declares $0.66 Dividend

On May 11, 2023 the company declared a regular quarterly dividend of $0.66 per share ($2.64 annualized). Shareholders of record as of June 1, 2023 received the payment on June 30, 2023. Previously, the company paid $0.66 per share.

At the current share price of $457.56 / share, the stock’s dividend yield is 0.58%.

Looking back five years and taking a sample every week, the average dividend yield has been 0.83%, the lowest has been 0.56%, and the highest has been 1.53%. The standard deviation of yields is 0.17 (n=235).

The current dividend yield is 1.43 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.17. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.20%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 1457 funds or institutions reporting positions in Martin Marietta Materials. This is an increase of 5 owner(s) or 0.34% in the last quarter. Average portfolio weight of all funds dedicated to MLM is 0.33%, an increase of 7.94%. Total shares owned by institutions increased in the last three months by 38.48% to 92,355K shares. The put/call ratio of MLM is 0.81, indicating a bullish outlook.

What are Other Shareholders Doing?

Ofi Invest Asset Management holds 25,674K shares representing 41.43% ownership of the company.

Select Equity Group holds 3,387K shares representing 5.47% ownership of the company. In it’s prior filing, the firm reported owning 3,611K shares, representing a decrease of 6.60%. The firm decreased its portfolio allocation in MLM by 6.75% over the last quarter.

Aristotle Capital Management holds 3,241K shares representing 5.23% ownership of the company. In it’s prior filing, the firm reported owning 3,303K shares, representing a decrease of 1.90%. The firm increased its portfolio allocation in MLM by 1.74% over the last quarter.

Baillie Gifford holds 2,887K shares representing 4.66% ownership of the company. In it’s prior filing, the firm reported owning 3,148K shares, representing a decrease of 9.04%. The firm decreased its portfolio allocation in MLM by 16.58% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 1,922K shares representing 3.10% ownership of the company. In it’s prior filing, the firm reported owning 1,886K shares, representing an increase of 1.87%. The firm decreased its portfolio allocation in MLM by 1.14% over the last quarter.

Martin Marietta Materials Background Information
(This description is provided by the company.)

An American-based company and a leading supplier of building materials, Martin Marietta teams supply the resources necessary for building the solid foundations on which our communities thrive.

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This article originally appeared on Fintel