Limbach (NASDAQ:LMB) Shares Gap Down - Here's What Happened

Key Points

• Limbach Holdings, Inc. (NASDAQ:LMB) experienced a significant gap down, opening at $107.00 after closing at $134.12, a nearly 20% drop.
• Despite the decline, several brokerages have upgraded their ratings on Limbach, with a majority maintaining a buy or strong-buy rating and an average price target of $133.00.
• The company reported an earnings per share of $0.93 for the last quarter, exceeding expectations, along with a 16.4% year-over-year increase in revenue.

Limbach Holdings, Inc. (NASDAQ:LMB - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $134.12, but opened at $107.00. Limbach shares last traded at $112.16, with a volume of 143,385 shares trading hands.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on LMB. Stifel Nicolaus increased their price target on shares of Limbach from $151.00 to $163.00 and gave the stock a "buy" rating in a research report on Friday, July 11th. Wall Street Zen upgraded Limbach from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 26th. Lake Street Capital increased their price target on Limbach from $125.00 to $156.00 and gave the stock a "buy" rating in a research report on Wednesday, July 2nd. Finally, Roth Capital reiterated a "buy" rating on shares of Limbach in a research report on Wednesday, May 7th. Four research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Buy" and an average target price of $133.00.

Limbach Stock Down 1.2%

The stock has a market capitalization of $1.33 billion, a P/E ratio of 39.03, a PEG ratio of 2.08 and a beta of 1.22. The company has a quick ratio of 1.55, a current ratio of 1.69 and a debt-to-equity ratio of 0.17. The firm has a 50 day simple moving average of $137.18 and a two-hundred day simple moving average of $108.02.

Limbach (NASDAQ:LMB - Get Free Report) last announced its earnings results on Tuesday, August 5th. The construction company reported $0.93 earnings per share for the quarter, topping analysts' consensus estimates of $0.81 by $0.12. The business had revenue of $142.24 million during the quarter, compared to the consensus estimate of $144.21 million. Limbach had a net margin of 6.38% and a return on equity of 29.38%. Limbach's quarterly revenue was up 16.4% on a year-over-year basis. During the same quarter last year, the firm earned $0.73 earnings per share. On average, equities research analysts expect that Limbach Holdings, Inc. will post 2.54 earnings per share for the current year.

Insider Activity at Limbach

In related news, insider Jay Sharp sold 2,000 shares of Limbach stock in a transaction dated Friday, June 13th. The stock was sold at an average price of $137.49, for a total value of $274,980.00. Following the completion of the sale, the insider owned 69,877 shares of the company's stock, valued at approximately $9,607,388.73. This trade represents a 2.78% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 9.70% of the stock is owned by insiders.

Institutional Trading of Limbach

Several institutional investors and hedge funds have recently made changes to their positions in LMB. Bessemer Group Inc. bought a new stake in shares of Limbach during the first quarter valued at approximately $11,705,000. Next Century Growth Investors LLC bought a new position in Limbach in the 4th quarter worth $13,374,000. Lord Abbett & CO. LLC purchased a new position in shares of Limbach in the first quarter worth $9,693,000. First Trust Advisors LP grew its holdings in Limbach by 67.5% during the 4th quarter. First Trust Advisors LP now owns 322,396 shares of the construction company's stock valued at $27,578,000 after buying an additional 129,869 shares in the last quarter. Finally, Northern Trust Corp grew its position in Limbach by 81.7% in the first quarter. Northern Trust Corp now owns 166,716 shares of the construction company's stock worth $12,415,000 after acquiring an additional 74,986 shares in the last quarter. Hedge funds and other institutional investors own 55.85% of the company's stock.

Limbach Company Profile

Limbach Holdings, Inc operates as a building systems solution company in the United States. It operates through two segments, General Contractor Relationships and Owner Direct Relationships. The company engages in the construction and renovation projects that involve primarily include mechanical, plumbing, and electrical services.