Limbach (NASDAQ:LMB) Sets New 52-Week Low on Disappointing Earnings

Key Points

• Limbach shares plunged 27.5% to a new 52-week low of $53.57 after the company reported quarterly earnings of $0.64 per share, missing analyst expectations of $0.93. Revenue also fell short at $173.46 million versus the $177.33 million consensus estimate.
• Analyst sentiment weakened, with brokerages downgrading the stock to “Hold.” The consensus rating is now “Hold,” although the average price target remains $97.00.
• Institutional investors increased their holdings, with hedge funds and other institutions collectively owning 55.85% of Limbach. Separately, Executive Vice President Jay Sharp sold 4,871 shares under a pre-arranged Rule 10b5-1 trading plan.

Shares of Limbach Holdings, Inc. (NASDAQ:LMB - Get Free Report) hit a new 52-week low during trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $53.57 and last traded at $56.34, with a volume of 265776 shares. The stock had previously closed at $77.11.

The construction company reported $0.64 earnings per share for the quarter, missing the consensus estimate of $0.93 by ($0.29). The firm had revenue of $173.46 million during the quarter, compared to analysts' expectations of $177.33 million. Limbach had a net margin of 5.09% and a return on equity of 26.17%.

Analyst Ratings Changes

Several brokerages have issued reports on LMB. Weiss Ratings cut shares of Limbach from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, May 8th. Wall Street Zen downgraded shares of Limbach from a "buy" rating to a "hold" rating in a research note on Saturday, May 9th. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $97.00.

Insider Buying and Selling

In other Limbach news, EVP Jay Sharp sold 4,871 shares of the business's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $79.82, for a total transaction of $388,803.22. Following the transaction, the executive vice president owned 73,456 shares of the company's stock, valued at approximately $5,863,257.92. The trade was a 6.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 7.00% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Invesco Ltd. boosted its position in shares of Limbach by 2,041.6% during the 2nd quarter. Invesco Ltd. now owns 400,603 shares of the construction company's stock valued at $56,124,000 after acquiring an additional 381,897 shares during the last quarter. Wasatch Advisors LP raised its stake in Limbach by 37.8% during the fourth quarter. Wasatch Advisors LP now owns 997,394 shares of the construction company's stock worth $77,647,000 after purchasing an additional 273,818 shares during the period. Neumeier Poma Investment Counsel LLC grew its holdings in shares of Limbach by 151.5% during the 4th quarter. Neumeier Poma Investment Counsel LLC now owns 318,238 shares of the construction company's stock worth $24,775,000 after purchasing an additional 191,685 shares during the period. Royce & Associates LP grew its holdings in shares of Limbach by 83.7% during the 4th quarter. Royce & Associates LP now owns 335,663 shares of the construction company's stock worth $26,131,000 after purchasing an additional 152,956 shares during the period. Finally, First Trust Advisors LP increased its position in shares of Limbach by 36.0% during the 4th quarter. First Trust Advisors LP now owns 442,173 shares of the construction company's stock worth $34,423,000 after purchasing an additional 117,035 shares during the last quarter. Hedge funds and other institutional investors own 55.85% of the company's stock.

Limbach Stock Down 27.5%

The stock has a market capitalization of $666.21 million, a price-to-earnings ratio of 20.32 and a beta of 1.45. The business has a 50-day moving average of $77.55 and a 200-day moving average of $81.95. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.71 and a current ratio of 1.71.

Limbach Company Profile

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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