Montrose Environmental Group (NYSE:ONT) Sets New 12-Month Low on Analyst Downgrade

Key Points

• Montrose Environmental Group shares fell to a new 52-week low after Bank of America downgraded the stock to “underperform” and set an $18 price target. Shares traded as low as $12.68, down sharply from the prior close of $22.63.
• Analyst sentiment is mixed but leans cautious: the stock has a consensus “Hold” rating and an average price target of $21.75, with two Buy, two Hold and two Sell ratings.
• Despite the selloff, company insiders bought 36,535 shares worth about $610,000 over the past quarter, while institutional investors own approximately 87.87% of the company.

Montrose Environmental Group, Inc. (NYSE:ONT - Get Free Report)'s share price hit a new 52-week low on Thursday after Bank of America downgraded the stock from a neutral rating to an underperform rating. Bank of America now has a $18.00 price target on the stock. Montrose Environmental Group traded as low as $12.68 and last traded at $15.17, with a volume of 220535 shares changing hands. The stock had previously closed at $22.63.

Several other research analysts have also recently commented on ONT. JPMorgan Chase & Co. cut their price target on Montrose Environmental Group from $24.00 to $22.00 and set a "neutral" rating on the stock in a research note on Monday, July 13th. Wall Street Zen downgraded Montrose Environmental Group from a "hold" rating to a "sell" rating in a report on Monday. Zacks Research raised Montrose Environmental Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, June 2nd. Weiss Ratings reiterated a "sell (d)" rating on shares of Montrose Environmental Group in a research note on Friday, May 29th. Finally, Needham & Company LLC decreased their price target on shares of Montrose Environmental Group from $35.00 to $28.00 and set a "buy" rating for the company in a research report on Friday, May 8th. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $21.75.

Insider Transactions at Montrose Environmental Group

In other news, CFO Allan Dicks acquired 6,535 shares of the business's stock in a transaction on Monday, May 11th. The shares were purchased at an average price of $15.36 per share, for a total transaction of $100,377.60. Following the completion of the purchase, the chief financial officer directly owned 218,178 shares of the company's stock, valued at $3,351,214.08. This represents a 3.09% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Peter Graham bought 25,140 shares of Montrose Environmental Group stock in a transaction on Friday, June 5th. The shares were purchased at an average cost of $17.19 per share, for a total transaction of $432,156.60. Following the acquisition, the director owned 256,689 shares in the company, valued at $4,412,483.91. The trade was a 10.86% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased 36,535 shares of company stock valued at $610,003 over the last quarter. Insiders own 10.40% of the company's stock.

Hedge Funds Weigh In On Montrose Environmental Group

Several large investors have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Montrose Environmental Group by 4.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 18,876 shares of the company's stock valued at $269,000 after purchasing an additional 780 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Montrose Environmental Group by 39.6% during the first quarter. Goldman Sachs Group Inc. now owns 326,969 shares of the company's stock worth $4,663,000 after purchasing an additional 92,671 shares during the period. Rhumbline Advisers lifted its position in shares of Montrose Environmental Group by 27.9% in the 2nd quarter. Rhumbline Advisers now owns 57,667 shares of the company's stock worth $1,262,000 after buying an additional 12,566 shares during the last quarter. Invesco Ltd. lifted its position in shares of Montrose Environmental Group by 13.1% in the 2nd quarter. Invesco Ltd. now owns 152,085 shares of the company's stock worth $3,329,000 after buying an additional 17,601 shares during the last quarter. Finally, Marshall Wace LLP boosted its holdings in shares of Montrose Environmental Group by 245.0% in the 2nd quarter. Marshall Wace LLP now owns 383,661 shares of the company's stock valued at $8,398,000 after buying an additional 272,444 shares during the period. 87.87% of the stock is currently owned by institutional investors.

Montrose Environmental Group Price Performance

The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.84 and a current ratio of 1.84. The company's fifty day moving average price is $19.12 and its 200 day moving average price is $20.89. The firm has a market capitalization of $532.33 million, a price-to-earnings ratio of 294.66, a price-to-earnings-growth ratio of 1.67 and a beta of 1.66.

About Montrose Environmental Group

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.

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