Montrose Environmental Group (NYSE:ONT) Shares Gap Down - What's Next?

Key Points

• Shares gapped down ~21.0%, opening at $18.48 vs. a $22.00 close and last trading at $18.18 on a volume of 141,284 shares.
• Analysts are mixed with a consensus rating of "Hold" and an average target of $34.67 (two Buys, one Hold, two Sells); Needham raised its target to $35 while Zacks cut the stock to a "strong sell."
• Insiders have been selling: CEO Vijay Manthripragada sold 46,121 shares at about $25.41 and insiders sold 107,527 shares (~$2.9M) over the last 90 days, though insiders still own 10.4% of the company.

Montrose Environmental Group, Inc. (NYSE:ONT - Get Free Report) shares gapped down before the market opened on Thursday . The stock had previously closed at $22.00, but opened at $18.48. Montrose Environmental Group shares last traded at $18.18, with a volume of 141,284 shares traded.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on ONT shares. Wall Street Zen lowered Montrose Environmental Group from a "buy" rating to a "hold" rating in a research note on Saturday, January 17th. Needham & Company LLC boosted their price target on Montrose Environmental Group from $32.00 to $35.00 and gave the stock a "buy" rating in a report on Thursday, February 26th. Finally, Zacks Research downgraded Montrose Environmental Group from a "hold" rating to a "strong sell" rating in a report on Monday. Two investment 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's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $34.67.

Montrose Environmental Group Stock Down 21.0%

The stock has a market cap of $629.00 million, a price-to-earnings ratio of -72.46, a price-to-earnings-growth ratio of 2.05 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 firm's 50-day moving average is $23.20 and its 200 day moving average is $24.30.

Montrose Environmental Group (NYSE:ONT - Get Free Report) last posted its earnings results on Wednesday, February 25th. The company reported $0.35 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.11. The business had revenue of $193.27 million for the quarter, compared to analysts' expectations of $186.24 million. Montrose Environmental Group had a negative net margin of 0.10% and a positive return on equity of 4.47%. The business's revenue for the quarter was up 2.2% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.90) earnings per share. Sell-side analysts anticipate that Montrose Environmental Group, Inc. will post 0.57 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Montrose Environmental Group news, CEO Vijay Manthripragada sold 46,121 shares of the stock in a transaction on Friday, March 13th. The shares were sold at an average price of $25.41, for a total transaction of $1,171,934.61. Following the transaction, the chief executive officer directly owned 236,788 shares in the company, valued at $6,016,783.08. This represents a 16.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Jose Revuelta sold 7,858 shares of the business's stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $27.00, for a total transaction of $212,166.00. Following the completion of the sale, the insider directly owned 269,282 shares of the company's stock, valued at $7,270,614. The trade was a 2.84% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 107,527 shares of company stock valued at $2,908,583 over the last 90 days. 10.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Montrose Environmental Group

A number of institutional investors have recently made changes to their positions in ONT. Advisory Services Network LLC acquired a new stake in shares of Montrose Environmental Group during the 3rd quarter valued at approximately $32,000. Canada Pension Plan Investment Board boosted its holdings in Montrose Environmental Group by 533.3% in the second quarter. Canada Pension Plan Investment Board now owns 1,900 shares of the company's stock worth $42,000 after purchasing an additional 1,600 shares during the period. Tower Research Capital LLC TRC increased its stake in Montrose Environmental Group by 95.6% during the second quarter. Tower Research Capital LLC TRC now owns 3,085 shares of the company's stock valued at $68,000 after purchasing an additional 1,508 shares during the last quarter. Dixon Mitchell Investment Counsel Inc. acquired a new stake in shares of Montrose Environmental Group during the fourth quarter worth $75,000. Finally, Assetmark Inc. acquired a new stake in shares of Montrose Environmental Group during the fourth quarter worth $84,000. 87.87% of the stock is currently owned by institutional investors.

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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