Montrose Environmental Group (NYSE:ONT) Hits New 12-Month Low - Here's What Happened

Key Points

• Montrose's stock hit a new 52-week low on Friday, trading as low as $16.60 (last $16.62) on volume of about 35,268 shares, down from a prior close of $17.45.
• The company reported an earnings beat (Q EPS $0.35 vs. $0.24 est., revenue $193.3M vs. $186.2M) but still shows a stretched valuation (PE ~319) and mixed analyst views—Needham raised its price target to $35 while the consensus rating is "Hold" with an average target of $34.67.
• There has been notable insider selling

Montrose Environmental Group, Inc. (NYSE:ONT - Get Free Report)'s stock price hit a new 52-week low on Friday . The company traded as low as $16.60 and last traded at $16.62, with a volume of 35268 shares traded. The stock had previously closed at $17.45.

Wall Street Analyst Weigh In

ONT has been the topic of a number of recent analyst reports. Needham & Company LLC increased their price target on shares of Montrose Environmental Group from $32.00 to $35.00 and gave the stock a "buy" rating in a report on Thursday, February 26th. Wall Street Zen downgraded shares of Montrose Environmental Group from a "buy" rating to a "hold" rating in a report on Saturday, January 17th. Finally, Zacks Research downgraded shares of Montrose Environmental Group from a "hold" rating to a "strong sell" rating in a report on Monday. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $34.67.

Montrose Environmental Group Stock Performance

The stock has a market capitalization of $576.55 million, a PE ratio of 318.86, a P/E/G ratio of 2.04 and a beta of 1.83. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.43 and a quick ratio of 1.43. The business's fifty day moving average price is $23.09 and its 200-day moving average price is $24.23.

Montrose Environmental Group (NYSE:ONT - Get Free Report) last announced its earnings results on Wednesday, February 25th. The company reported $0.35 earnings per share for the quarter, beating analysts' consensus estimates of $0.24 by $0.11. The business had revenue of $193.27 million for the quarter, compared to the consensus estimate of $186.24 million. Montrose Environmental Group had a net margin of 0.71% and a return on equity of 5.55%. Montrose Environmental Group's quarterly revenue was up 2.2% on a year-over-year basis. During the same period last year, the firm posted ($0.90) earnings per share. As a group, equities research analysts expect that Montrose Environmental Group, Inc. will post 0.57 EPS for the current year.

Insider Activity at Montrose Environmental Group

In related news, Director J Thomas Presby sold 10,000 shares of the firm's stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $28.87, for a total value of $288,700.00. Following the sale, the director directly owned 62,614 shares of the company's stock, valued at $1,807,666.18. This trade represents a 13.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, General Counsel Nasym Afsari sold 43,348 shares of the firm's stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $28.37, for a total transaction of $1,229,782.76. Following the completion of the sale, the general counsel directly owned 204,878 shares in the company, valued at $5,812,388.86. This represents a 17.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 107,527 shares of company stock valued at $2,908,583. Company insiders own 10.40% of the company's stock.

Institutional Investors Weigh In On Montrose Environmental Group

Institutional investors and hedge funds have recently bought and sold shares of the stock. Lisanti Capital Growth LLC purchased a new stake in Montrose Environmental Group in the third quarter valued at approximately $2,803,000. Nordea Investment Management AB purchased a new position in shares of Montrose Environmental Group during the fourth quarter worth approximately $1,382,000. Peregrine Capital Management LLC raised its stake in shares of Montrose Environmental Group by 16.6% during the third quarter. Peregrine Capital Management LLC now owns 283,899 shares of the company's stock worth $7,796,000 after acquiring an additional 40,393 shares in the last quarter. Tudor Investment Corp ET AL purchased a new position in shares of Montrose Environmental Group during the third quarter worth approximately $3,979,000. Finally, Allspring Global Investments Holdings LLC purchased a new position in shares of Montrose Environmental Group during the fourth quarter worth approximately $10,140,000. 87.87% of the stock is owned by hedge funds and other institutional investors.

Montrose Environmental Group Company Profile

Montrose Environmental Group NYSE: MEG is a global provider of environmental technical and monitoring services, delivering solutions for site assessment, remediation, compliance and long-term environmental stewardship. The company serves a broad range of industries, including energy, manufacturing, chemicals, mining and government agencies, supporting clients with risk management strategies, regulatory permitting and environmental permitting.

Montrose's core offerings encompass environmental consulting, engineering design, field sampling and laboratory analysis, plus innovative digital monitoring platforms.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.