Leggett & Platt (NYSE:LEG) Downgraded to Strong Sell Rating by Zacks Research

Key Points

• Leggett & Platt has been downgraded from a "hold" to a "strong sell" rating by Zacks Research, indicating a significant shift in analysts' outlook on the stock.
• Despite the downgrade, Goldman Sachs has increased its price target from $8.00 to $9.00, while maintaining a "neutral" rating.
• The company reported $1.06 billion in revenue for the last quarter, a 6.3% drop compared to the same quarter last year, despite beating earnings estimates.

Zacks Research lowered shares of Leggett & Platt (NYSE:LEG - Free Report) from a hold rating to a strong sell rating in a research note published on Monday,Zacks.com reports. Zacks Research also issued estimates for Leggett & Platt's Q3 2025 earnings at $0.31 EPS, Q4 2025 earnings at $0.24 EPS, Q1 2026 earnings at $0.25 EPS, Q2 2026 earnings at $0.31 EPS, Q3 2026 earnings at $0.31 EPS, Q4 2026 earnings at $0.25 EPS, Q1 2027 earnings at $0.28 EPS and Q2 2027 earnings at $0.32 EPS.

A number of other analysts have also issued reports on LEG. The Goldman Sachs Group boosted their price objective on Leggett & Platt from $8.00 to $9.00 and gave the company a "neutral" rating in a research note on Wednesday, April 30th. Piper Sandler restated a "neutral" rating and set a $9.00 target price (down from $10.00) on shares of Leggett & Platt in a research report on Monday, August 4th. Finally, Wall Street Zen lowered Leggett & Platt from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Three equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus price target of $9.67.

Leggett & Platt Stock Performance

Shares of NYSE:LEG traded up $0.5350 during midday trading on Monday, reaching $9.6550. 1,810,149 shares of the company traded hands, compared to its average volume of 1,840,829. The company has a quick ratio of 1.36, a current ratio of 2.17 and a debt-to-equity ratio of 2.09. Leggett & Platt has a 12 month low of $6.47 and a 12 month high of $14.23. The firm has a market capitalization of $1.31 billion, a price-to-earnings ratio of 9.37 and a beta of 0.70. The firm's fifty day moving average price is $9.47 and its two-hundred day moving average price is $8.93.

Leggett & Platt (NYSE:LEG - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported $0.30 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.29 by $0.01. Leggett & Platt had a return on equity of 19.42% and a net margin of 3.36%.The company had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.06 billion. During the same period in the previous year, the company posted $0.29 EPS. The firm's revenue for the quarter was down 6.3% compared to the same quarter last year. Leggett & Platt has set its FY 2025 guidance at 1.000-1.200 EPS. On average, equities analysts expect that Leggett & Platt will post 1.14 earnings per share for the current year.

Leggett & Platt Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Monday, September 15th will be paid a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date is Monday, September 15th. Leggett & Platt's dividend payout ratio is currently 19.42%.

Hedge Funds Weigh In On Leggett & Platt

A number of hedge funds and other institutional investors have recently modified their holdings of LEG. Nisa Investment Advisors LLC purchased a new position in shares of Leggett & Platt in the 2nd quarter worth about $76,000. Sterling Capital Management LLC boosted its holdings in shares of Leggett & Platt by 17.1% in the 4th quarter. Sterling Capital Management LLC now owns 7,972 shares of the company's stock worth $77,000 after purchasing an additional 1,163 shares in the last quarter. State of Wyoming purchased a new position in shares of Leggett & Platt in the 1st quarter worth about $89,000. SeaCrest Wealth Management LLC purchased a new position in shares of Leggett & Platt in the 2nd quarter worth about $89,000. Finally, Captrust Financial Advisors purchased a new position in shares of Leggett & Platt in the 2nd quarter worth about $91,000. 64.23% of the stock is currently owned by hedge funds and other institutional investors.

About Leggett & Platt

Leggett & Platt, Inc engages in the manufacture and distribution of furniture and engineered components and products among homes, offices, automobiles, and commercial aircraft. It operates through the following segments: Bedding Products, Specialized Products, and Furniture, Flooring & Textile Products.