DCO DUCOMMUN INC /DE/
Price Chart
Executive Summary
Two insiders at Ducommun sold a total of $1.11M in open-market stock within a week of the company filing a restatement (Item 4.02) for stock-based compensation errors that overestimated net income by $13.2M over two years. The CFO also exercised and netted options for $606K in tax-withholding shares, a routine vesting event. The open-market sales by the GC and an SVP represent ~0.05% of the $2.1B market cap — well below materiality thresholds — but the proximity to a material restatement elevates the concern. Earnings released 8 days before the sales showed record Q1 revenue and a 607% net income jump, providing positive context that likely mitigates the restatement's impact.
Key Financial Metrics
Actionable Insight
Despite strong Q1 earnings, the restatement introduces credibility risk and potential SEC/civil liability. The insider sales are small in dollar terms but come after a material accounting error disclosure. Watch for the filed 10-K/A for full restatement details and any analyst downgrades; hedge or trim long exposure until the restatement is fully processed. Given the positive earnings backdrop, the downside is likely contained to a 3-7% correction over the next few weeks.
Key Facts
- Restatement (Item 4.02) filed May 1, 2026: operating income overstated by $10.0M (FY24) and $3.4M (FY25) due to stock-based compensation timing errors.
- Net income overstated by $9.8M (FY24) and $3.4M (FY25); EPS overstated by $0.65 and $0.22 for those years.
- Insider selling cluster: $877K by SVP Jerry L. Redondo (open-market) and $234K by GC Rajiv A. Tata (open-market) on May 14 and May 20, 2026.
- Total open-market sales of $1.11M represent ~0.05% of market cap ($2.1B) — trivial in proportionality terms.
- CFO Suman B. Mookerji exercised options and surrendered shares for tax withholding (non-cash, $0 economic value) — not directional.
- Q1 2026 earnings (May 12, 2026): revenue $209.0M (+9% YoY), net income $9.9M (+607% YoY), strong operational results.
Financial Impact
Restatement corrected $13.2M in overstated net income over FY24-FY25; insider sales of $1.11M are 0.05% of market cap.
Risk Factors
- Restatement could trigger SEC investigation or shareholder lawsuits, creating prolonged overhang.
- Insider selling may accelerate if more executives cash out before 10-K/A filing.
- The non-cash nature of the error (stock comp timing) reduces operational risk but increases governance risk.
Market Snapshot
Documents Analyzed
This report is based on 1 SEC document filed with EDGAR.
| Document | Accession Number |
|---|---|
| CLUSTER Data (Synthetic) | cluster-DCO-1779313067896 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
May 22, 2026
18d ago
|
Insider Cluster
| $150.03 $148.62 | ▲ +0.94% | ▲ +2.02% | $150.04 (−0.01%) |
|
May 22, 2026
18d ago
|
Insider Cluster
| $150.03 $150.26 | ▼ −0.15% | ▲ +1.06% | $150.04 (−0.01%) |
|
May 20, 2026
20d ago
|
Insider Cluster
| $142.92 $152.22 | ▼ −6.51% | ▼ −4.66% | $150.04 (−4.98%) |
|
May 12, 2026
28d ago
|
Press Release
| $145.03 $145.36 | ▲ +0.23% | ▲ +0.15% | $150.04 (+3.45%) |
|
May 8, 2026
4w ago
|
10-K/A
| $137.23 $151.59 | ▼ −10.46% | ▼ −9.00% | $150.04 (−9.33%) |
|
May 4, 2026
5w ago
|
8-K
| $142.56 $145.03 | ▲ +1.73% | ▼ −0.25% | $150.04 (+5.25%) |
|
Apr 30, 2026
5w ago
|
Press Release
| $141.93 $137.74 | ▼ −2.95% | ▼ −4.68% | $150.04 (+5.71%) |
|
Apr 28, 2026
6w ago
|
Press Release
| $143.11 $142.56 | ▼ −0.38% | ▼ −2.08% | $150.04 (+4.84%) |
|
Mar 13, 2026
12w ago
|
DEFA14A
| $126.91 $122.73 | ▼ −3.29% | ▼ −1.25% | $150.04 (+18.23%) |
|
Feb 26, 2026
14w ago
|
8-K
| $122.40 $130.19 | ▲ +6.36% | ▲ +7.49% | $150.04 (+22.58%) |
US Market Status
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