Royce & Associates LP Raises Position in Montrose Environmental Group, Inc. (NYSE:MEG)

Key Points

• Royce & Associates LP significantly increased its stake in Montrose Environmental Group by 167.5% during the first quarter, owning a total of 852,849 shares valued at approximately $12.16 million.
• Montrose Environmental Group's board approved a $40 million stock buyback program, indicating a belief that the company's shares are undervalued.
• Needham & Company LLC raised the price target for Montrose Environmental Group from $28.00 to $30.00, maintaining a "buy" rating, while the stock has an average rating of "Moderate Buy" with a consensus target price of $31.80.

Royce & Associates LP grew its holdings in Montrose Environmental Group, Inc. (NYSE:MEG - Free Report) by 167.5% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 852,849 shares of the company's stock after acquiring an additional 533,986 shares during the period. Royce & Associates LP owned about 2.46% of Montrose Environmental Group worth $12,162,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors have also made changes to their positions in the business. Quarry LP bought a new position in shares of Montrose Environmental Group during the 4th quarter valued at about $36,000. KLP Kapitalforvaltning AS bought a new position in shares of Montrose Environmental Group during the fourth quarter valued at approximately $130,000. Radnor Capital Management LLC bought a new stake in shares of Montrose Environmental Group during the first quarter valued at approximately $147,000. B. Metzler seel. Sohn & Co. AG raised its stake in shares of Montrose Environmental Group by 40.0% during the fourth quarter. B. Metzler seel. Sohn & Co. AG now owns 11,302 shares of the company's stock valued at $210,000 after acquiring an additional 3,231 shares in the last quarter. Finally, Aristides Capital LLC purchased a new stake in Montrose Environmental Group during the fourth quarter worth $226,000. 87.87% of the stock is currently owned by hedge funds and other institutional investors.

Montrose Environmental Group Price Performance

Shares of MEG stock traded down $0.49 during mid-day trading on Tuesday, hitting $22.79. 61,658 shares of the stock were exchanged, compared to its average volume of 463,197. The firm has a fifty day moving average of $21.85 and a 200 day moving average of $18.93. The company has a quick ratio of 2.05, a current ratio of 2.05 and a debt-to-equity ratio of 0.58. Montrose Environmental Group, Inc. has a 52-week low of $10.51 and a 52-week high of $34.56. The company has a market cap of $789.73 million, a PE ratio of -9.82, a price-to-earnings-growth ratio of 8.23 and a beta of 1.90.

Montrose Environmental Group announced that its board has initiated a stock repurchase program on Wednesday, May 7th that permits the company to buyback $40.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 7.7% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Separately, Needham & Company LLC lifted their price target on shares of Montrose Environmental Group from $28.00 to $30.00 and gave the stock a "buy" rating in a report on Friday, May 9th. Two analysts have rated the stock with a hold rating and three have given a buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $31.80.

Montrose Environmental Group Profile

Montrose Environmental Group, Inc operates as an environmental services company in the United States, Canada, and internationally. The company operates in three segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The Assessment, Permitting and Response segment provides scientific advisory and consulting services to support environmental assessments; environmental emergency response and recovery; toxicology consulting and environmental audits and permits for current operations; facility upgrades; new projects; decommissioning projects; and development projects.