Franklin Resources Inc. has increased its stake in Martin Marietta Materials, Inc. (NYSE: MLM), raising its holdings by 0.4% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission, Franklin Resources now owns 527,968 shares of the construction company, which is valued at approximately $289.8 million.
The firm acquired an additional 2,285 shares during this period. Other institutional investors have also adjusted their positions in Martin Marietta, indicating growing interest in the company. For instance, Zions Bancorporation National Association UT purchased a new stake worth around $30,000 in the first quarter.
NewSquare Capital LLC enhanced its holdings by 62.2% during the second quarter, bringing its total to 60 shares valued at $33,000. Clearstead Trust LLC increased its stake by 93.8% during the same period, now owning 62 shares valued at $34,000. Aspect Partners LLC experienced a significant boost, lifting its holdings by 540.0% to 64 shares, valued at $35,000. Additionally, Tobam acquired a new stake in Martin Marietta Materials worth approximately $40,000. Overall, institutional investors and hedge funds own 95.04% of the company’s stock.
Analysts Adjust Price Targets
The stock has been the subject of various analyst reports recently. Barclays has raised its price target for Martin Marietta from $600 to $675, maintaining an “overweight” rating. Weiss Ratings reaffirmed a “buy (b-)” rating, while Wells Fargo & Company lowered its target from $620 to $610 and assigned an “equal weight” rating.
In contrast, Wall Street Zen downgraded the stock from a “hold” rating to a “strong sell” rating. Meanwhile, UBS Group increased its price objective from $705 to $723, assigning a “buy” rating. Currently, two analysts rate the stock as a Strong Buy, thirteen as Buy, and five as Hold. According to MarketBeat.com, the consensus rating stands at “Moderate Buy,” with a target price of $644.38.
Martin Marietta’s Financial Performance
On November 4, 2023, Martin Marietta Materials reported its earnings results, revealing earnings per share of $5.97, which fell short of the consensus estimate of $6.62 by $0.65. The company generated $1.85 billion in revenue, below analysts’ expectations of $2.06 billion. Martin Marietta recorded a return on equity of 11.88% and a net margin of 16.47%.
The company has set its fiscal year 2025 guidance at earnings per share (EPS) of $19.53. The stock opened at $604.04 on Friday, having a market capitalization of $36.43 billion. The firm’s price-to-earnings (PE) ratio is 33.50, with a price-to-earnings-growth (PEG) ratio of 5.57 and a beta of 1.06. The company has fluctuated between a 12-month low of $441.95 and a high of $665.18.
Additionally, Martin Marietta has announced a quarterly dividend of $0.83 per share, payable on December 31, 2023. Shareholders of record on December 1 will receive this dividend, representing an annualized amount of $3.32 and a yield of 0.5%. The current payout ratio stands at 17.50%.
Founded as a natural resource-based building materials company, Martin Marietta supplies a range of aggregates and heavy-side building materials to the construction industry in the United States and internationally. Its product offerings include crushed stone, sand, gravel, ready-mixed concrete, and asphalt, which are essential for infrastructure and construction projects across various sectors.
