Montrose Environmental Group (NYSE:MEG) Shares Down 9.4% - Should You Sell?

Key Points

• Montrose Environmental Group shares fell by 9.4% to $20.55, significantly below its previous close of $22.69, with trading volume down 58% from average levels.
• Needham & Company raised its price target for the stock from $28.00 to $30.00, maintaining a "buy" rating amidst a consensus price target of $31.80 from analysts.
• The company announced a $40 million share repurchase program, indicating that its board believes the stock is currently undervalued.

Montrose Environmental Group, Inc. (NYSE:MEG - Get Free Report) shares dropped 9.4% on Friday . The company traded as low as $20.84 and last traded at $20.55. Approximately 191,782 shares traded hands during trading, a decline of 58% from the average daily volume of 460,896 shares. The stock had previously closed at $22.69.

Wall Street Analyst Weigh In

Separately, Needham & Company LLC boosted their price objective on shares of Montrose Environmental Group from $28.00 to $30.00 and gave the company a "buy" rating in a report on Friday, May 9th. Two investment analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to MarketBeat, Montrose Environmental Group has an average rating of "Moderate Buy" and a consensus price target of $31.80.

Montrose Environmental Group Stock Down 9.7%

The business's 50-day moving average is $22.01 and its 200-day moving average is $18.98. The company has a market capitalization of $710.53 million, a price-to-earnings ratio of -8.84, a P/E/G ratio of 7.80 and a beta of 1.90. The company has a quick ratio of 2.05, a current ratio of 2.05 and a debt-to-equity ratio of 0.58.

Montrose Environmental Group declared that its Board of Directors has authorized a share repurchase program on Wednesday, May 7th that permits the company to repurchase $40.00 million in shares. This repurchase authorization permits the company to buy up to 7.7% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Quarry LP purchased a new stake in Montrose Environmental Group during the 4th quarter valued at about $36,000. AlphaQuest LLC grew its stake in shares of Montrose Environmental Group by 569.3% in the 1st quarter. AlphaQuest LLC now owns 4,096 shares of the company's stock valued at $58,000 after buying an additional 3,484 shares during the period. Brooklyn Investment Group purchased a new stake in shares of Montrose Environmental Group in the 1st quarter valued at approximately $79,000. CWM LLC grew its stake in shares of Montrose Environmental Group by 1,015.3% in the 2nd quarter. CWM LLC now owns 4,506 shares of the company's stock valued at $99,000 after buying an additional 4,102 shares during the period. Finally, KLP Kapitalforvaltning AS purchased a new stake in shares of Montrose Environmental Group in the 4th quarter valued at approximately $130,000. Institutional investors and hedge funds own 87.87% of the company's stock.

Montrose Environmental Group Company Profile

Montrose Environmental Group, Inc operates as an environmental services company in the United States, Canada, and internationally. The company operates in three segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The Assessment, Permitting and Response segment provides scientific advisory and consulting services to support environmental assessments; environmental emergency response and recovery; toxicology consulting and environmental audits and permits for current operations; facility upgrades; new projects; decommissioning projects; and development projects.

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