Limbach (NASDAQ:LMB) Issues Quarterly Earnings Results

Key Points

• Earnings beat: Limbach reported Q results with EPS of $0.64 versus the $0.21 consensus and revenue of $138.86M (vs. $134.23M), delivering a 6.04% net margin and 30.73% return on equity.
• Stock reaction and valuation: Shares jumped about 11.6% to $114.11 on heavy volume, giving a market cap of $1.36B and a trailing P/E of 35.22.
• Insider activity and market view: Insiders sold 27,433 shares worth ~$2.35M over the last quarter (insiders own 9.7%), institutional investors hold 55.85%, and analysts have an average “Moderate Buy” rating with a $116.67 target.

Limbach (NASDAQ:LMB - Get Free Report) announced its earnings results on Tuesday. The construction company reported $0.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.43, Zacks reports. Limbach had a net margin of 6.04% and a return on equity of 30.73%. The company had revenue of $138.86 million for the quarter, compared to the consensus estimate of $134.23 million.

Limbach Stock Up 11.6%

NASDAQ:LMB traded up $11.82 during trading hours on Tuesday, reaching $114.11. The company's stock had a trading volume of 309,296 shares, compared to its average volume of 185,169. The company has a market cap of $1.36 billion, a price-to-earnings ratio of 35.22 and a beta of 1.54. Limbach has a one year low of $65.08 and a one year high of $154.05. The business's 50-day moving average is $85.74 and its 200-day moving average is $83.45. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.44 and a quick ratio of 1.44.

Insiders Place Their Bets

In related news, EVP Jay Sharp sold 2,000 shares of the company's stock in a transaction on Monday, March 16th. The shares were sold at an average price of $79.99, for a total value of $159,980.00. Following the completion of the sale, the executive vice president directly owned 79,027 shares in the company, valued at approximately $6,321,369.73. This represents a 2.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CFO Jayme L. Brooks sold 3,440 shares of the company's stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $100.00, for a total transaction of $344,000.00. Following the completion of the sale, the chief financial officer owned 125,227 shares of the company's stock, valued at $12,522,700. This represents a 2.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 27,433 shares of company stock valued at $2,345,453 over the last quarter. 9.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Limbach

A number of large investors have recently bought and sold shares of LMB. Caitong International Asset Management Co. Ltd boosted its holdings in Limbach by 23.3% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 687 shares of the construction company's stock worth $53,000 after purchasing an additional 130 shares in the last quarter. Comerica Bank boosted its holdings in Limbach by 24.0% during the first quarter. Comerica Bank now owns 862 shares of the construction company's stock valued at $64,000 after acquiring an additional 167 shares during the period. Royal Bank of Canada boosted its holdings in Limbach by 34.5% during the fourth quarter. Royal Bank of Canada now owns 1,445 shares of the construction company's stock valued at $113,000 after acquiring an additional 371 shares during the period. Los Angeles Capital Management LLC bought a new stake in Limbach during the fourth quarter valued at about $150,000. Finally, BNP Paribas Financial Markets boosted its holdings in Limbach by 59.7% during the second quarter. BNP Paribas Financial Markets now owns 1,131 shares of the construction company's stock valued at $158,000 after acquiring an additional 423 shares during the period. 55.85% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on LMB. Stifel Nicolaus cut their target price on shares of Limbach from $111.00 to $104.00 and set a "buy" rating on the stock in a research note on Monday, January 26th. JPMorgan Chase & Co. cut their target price on shares of Limbach from $100.00 to $90.00 and set a "neutral" rating on the stock in a research note on Thursday, March 26th. Finally, Zacks Research upgraded shares of Limbach from a "strong sell" rating to a "hold" rating in a report on Monday, January 5th. Three equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, Limbach currently has an average rating of "Moderate Buy" and an average price target of $116.67.

About Limbach

Limbach Holdings, Inc NASDAQ: LMB is a U.S.-based mechanical construction firm specializing in the design, installation and maintenance of heating, ventilation and air conditioning (HVAC) systems, piping, plumbing and sheet metal fabrication. The company delivers comprehensive mechanical solutions to commercial, institutional, health care, education, government and industrial clients, drawing on its in-house engineering, prefabrication and construction management capabilities.

The company's service offerings encompass full-scope mechanical construction, including energy system design, direct digital controls and building automation, retrofits, testing and balancing, preventive maintenance programs and emergency response services.

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