Lindsay (NYSE:LNN) Shares Gap Down - Time to Sell?

Key Points

• Lindsay shares opened lower after a gap down, falling from a prior close of $115.54 to an opening price of $112.30, and were last trading about 2.1% lower.
• Analysts remain cautious: Lindsay has a consensus Hold rating with a consensus price target of $113.00, and several firms recently trimmed ratings or lowered targets.
• The company recently beat quarterly earnings expectations with EPS of $1.53 versus $1.14 expected, and it also raised its quarterly dividend to $0.38 per share, implying a 1.3% yield.

Shares of Lindsay Corporation (NYSE:LNN - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $115.54, but opened at $112.30. Lindsay shares last traded at $113.5040, with a volume of 30,611 shares trading hands.

Analyst Ratings Changes

Several research analysts have issued reports on LNN shares. Weiss Ratings cut shares of Lindsay from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, May 21st. Zacks Research raised Lindsay from a "strong sell" rating to a "hold" rating in a research report on Monday, June 8th. Finally, Stifel Nicolaus dropped their price objective on Lindsay from $128.00 to $113.00 and set a "hold" rating on the stock in a research report on Monday, April 6th. Three equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, Lindsay has a consensus rating of "Hold" and a consensus price target of $113.00.

Lindsay Trading Down 2.1%

The company has a market capitalization of $1.15 billion, a price-to-earnings ratio of 21.72 and a beta of 0.69. The company has a quick ratio of 2.04, a current ratio of 2.93 and a debt-to-equity ratio of 0.23. The company's 50 day simple moving average is $114.29 and its two-hundred day simple moving average is $119.07.

Lindsay (NYSE:LNN - Get Free Report) last issued its quarterly earnings results on Thursday, July 2nd. The industrial products company reported $1.53 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.14 by $0.39. The business had revenue of $160.76 million for the quarter, compared to the consensus estimate of $157.80 million. Lindsay had a return on equity of 10.73% and a net margin of 8.79%.The business's quarterly revenue was down 5.2% on a year-over-year basis. During the same period in the prior year, the firm posted $1.78 earnings per share. As a group, research analysts anticipate that Lindsay Corporation will post 5.19 earnings per share for the current fiscal year.

Lindsay Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 31st. Shareholders of record on Monday, August 17th will be paid a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a yield of 1.3%. This is a boost from Lindsay's previous quarterly dividend of $0.37. The ex-dividend date is Monday, August 17th. Lindsay's dividend payout ratio (DPR) is 28.41%.

Institutional Investors Weigh In On Lindsay

A number of large investors have recently modified their holdings of the business. Nuance Investments LLC lifted its position in Lindsay by 293.5% during the 4th quarter. Nuance Investments LLC now owns 178,571 shares of the industrial products company's stock worth $21,048,000 after acquiring an additional 133,190 shares during the period. Wellington Management Group LLP acquired a new position in shares of Lindsay in the fourth quarter valued at about $13,994,000. Amundi raised its stake in shares of Lindsay by 39.4% in the fourth quarter. Amundi now owns 269,817 shares of the industrial products company's stock worth $31,843,000 after purchasing an additional 76,292 shares during the last quarter. Invesco Ltd. raised its stake in shares of Lindsay by 32.6% in the third quarter. Invesco Ltd. now owns 205,985 shares of the industrial products company's stock worth $28,953,000 after purchasing an additional 50,671 shares during the last quarter. Finally, Marshall Wace LLP acquired a new stake in shares of Lindsay during the second quarter worth about $6,670,000. Hedge funds and other institutional investors own 89.94% of the company's stock.

About Lindsay

Lindsay Corporation NYSE: LNN is a U.S.-based manufacturer of agricultural irrigation and infrastructure products. Headquartered in Omaha, Nebraska, the company has built a reputation for designing and producing center pivot and lateral‐move irrigation systems under the Zimmatic brand. These systems feature advanced controls, precision sprinklers and automated monitoring technology that help growers optimize water use, improve crop yields and enhance sustainability in a variety of row-crop, specialty crop and forage operations.

Beyond its core irrigation business, Lindsay operates an infrastructure segment that delivers engineered products and services for water and roadway management.

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