Montrose Environmental Group (NYSE:MEG) Trading Down 9.4% - Time to 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 fell 9.4% during mid-day trading on Friday . The company traded as low as $20.84 and last traded at $20.55. 191,782 shares changed hands during trading, a decline of 58% from the average session volume of 460,896 shares. The stock had previously closed at $22.69.

Wall Street Analysts Forecast Growth

Separately, Needham & Company LLC raised their price target on Montrose Environmental Group from $28.00 to $30.00 and gave the company a "buy" rating in a report on Friday, May 9th. Two analysts have rated the stock with a hold rating and three have assigned a buy rating to the company's stock. Based on data from MarketBeat, Montrose Environmental Group currently has an average rating of "Moderate Buy" and a consensus target price of $31.80.

Montrose Environmental Group Stock Up 5.1%

The stock has a 50 day simple moving average of $22.08 and a 200-day simple moving average of $18.92. The firm has a market cap of $775.03 million, a PE ratio of -9.64, a PEG ratio of 7.22 and a beta of 1.90. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.05 and a quick ratio of 2.05.

Montrose Environmental Group declared that its board has authorized a stock buyback program on Wednesday, May 7th that allows the company to repurchase $40.00 million in shares. This repurchase authorization allows the company to buy up to 7.7% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Quarry LP purchased a new position in shares of Montrose Environmental Group in the fourth quarter worth $36,000. AlphaQuest LLC grew its holdings in shares of Montrose Environmental Group by 569.3% in the first quarter. AlphaQuest LLC now owns 4,096 shares of the company's stock worth $58,000 after acquiring an additional 3,484 shares during the period. CWM LLC grew its holdings in shares of Montrose Environmental Group by 1,015.3% in the second quarter. CWM LLC now owns 4,506 shares of the company's stock worth $99,000 after acquiring an additional 4,102 shares during the period. Creekmur Asset Management LLC bought a new stake in shares of Montrose Environmental Group in the second quarter worth $113,000. Finally, Brooklyn Investment Group bought a new stake in shares of Montrose Environmental Group in the first quarter worth $79,000. Hedge funds and other institutional investors 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.