Montrose Environmental Group (NYSE:MEG) Shares Gap Up - Still a Buy?

Key Points

• Montrose Environmental Group (NYSE:MEG) shares opened at $29.70 after closing at $22.61, indicating strong market activity with a last trade price of $25.52.
• Needham & Company upgraded Montrose's price target from $28.00 to $30.00 and reaffirmed a "buy" rating, with an average target price of $31.80 from analysts.
• The company's board approved a $40.00 million stock repurchase plan, suggesting confidence in its stock value amidst a backdrop of increasing institutional investment.

Montrose Environmental Group, Inc. (NYSE:MEG - Get Free Report) shares gapped up before the market opened on Thursday . The stock had previously closed at $22.61, but opened at $29.70. Montrose Environmental Group shares last traded at $25.52, with a volume of 320,563 shares traded.

Wall Street Analyst Weigh In

Separately, Needham & Company LLC upped 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 research analysts have rated the stock with a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat.com, Montrose Environmental Group currently has an average rating of "Moderate Buy" and an average target price of $31.80.

Montrose Environmental Group Stock Up 4.3%

The company has a current ratio of 2.05, a quick ratio of 2.05 and a debt-to-equity ratio of 0.58. The stock has a market capitalization of $817.63 million, a price-to-earnings ratio of -10.15, a price-to-earnings-growth ratio of 7.98 and a beta of 1.90. The firm's 50 day simple moving average is $22.16 and its 200-day simple moving average is $18.97.

Montrose Environmental Group announced that its board has authorized a stock repurchase plan on Wednesday, May 7th that authorizes the company to repurchase $40.00 million in shares. This repurchase authorization authorizes the company to buy up to 7.7% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Institutional Investors Weigh In On Montrose Environmental Group

Hedge funds have recently made changes to their positions in the business. Quarry LP purchased a new stake in Montrose Environmental Group during the fourth quarter valued at about $36,000. AlphaQuest LLC boosted its stake in shares of Montrose Environmental Group by 569.3% during the first quarter. AlphaQuest LLC now owns 4,096 shares of the company's stock valued at $58,000 after purchasing an additional 3,484 shares during the period. Brooklyn Investment Group bought a new position in shares of Montrose Environmental Group in the first quarter worth approximately $79,000. CWM LLC increased its stake 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 buying an additional 4,102 shares during the period. Finally, Creekmur Asset Management LLC bought a new stake in Montrose Environmental Group during the 2nd quarter valued at $113,000. 87.87% of the stock is currently owned by institutional investors.

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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