Montrose Environmental Group (NYSE:ONT) Stock Price Down 7.1% - Should You Sell?

Key Points

• Montrose Environmental Group shares fell 7.1% to $15.44, with trading volume down 92% from the average daily level.
• Analyst sentiment is cautious: the stock has an average “Reduce” rating and a consensus price target of $19.50, while Barclays cut its target to $15 and several firms downgraded the shares.
• The company exceeded quarterly earnings and revenue estimates, reporting $0.51 in EPS versus an expected $0.08 and $186.66 million in revenue versus $179.69 million; meanwhile, an insider purchased 25,140 shares.

Montrose Environmental Group, Inc. (NYSE:ONT - Get Free Report)'s share price dropped 7.1% during trading on Thursday . The stock traded as low as $15.44 and last traded at $15.44. 41,933 shares were traded during mid-day trading, a decline of 92% from the average daily volume of 534,409 shares. The stock had previously closed at $16.62.

Analyst Ratings Changes

Several equities analysts have recently weighed in on ONT shares. Weiss Ratings lowered shares of Montrose Environmental Group from a "sell (d)" rating to a "sell (e+)" rating in a research report on Tuesday, August 11th. Zacks Research upgraded shares of Montrose Environmental Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, June 2nd. Barclays reissued an "equal weight" rating and set a $15.00 target price (down from $19.00) on shares of Montrose Environmental Group in a research note on Friday, August 7th. Wall Street Zen lowered shares of Montrose Environmental Group from a "hold" rating to a "sell" rating in a research report on Monday, August 3rd. Finally, JPMorgan Chase & Co. dropped their price target on Montrose Environmental Group from $24.00 to $22.00 and set a "neutral" rating on the stock in a report on Monday, July 13th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Reduce" and an average price target of $19.50.

Montrose Environmental Group Stock Performance

The company has a debt-to-equity ratio of 0.84, a quick ratio of 2.00 and a current ratio of 2.00. The firm has a 50 day moving average of $19.09 and a 200-day moving average of $20.47. The stock has a market capitalization of $539.44 million, a PE ratio of -46.54, a P/E/G ratio of 1.65 and a beta of 1.66.

Montrose Environmental Group (NYSE:ONT - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $0.51 earnings per share for the quarter, beating analysts' consensus estimates of $0.08 by $0.43. The company had revenue of $186.66 million for the quarter, compared to the consensus estimate of $179.69 million. Montrose Environmental Group had a positive return on equity of 4.11% and a negative net margin of 1.44%. Research analysts forecast that Montrose Environmental Group, Inc. will post 0.74 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Peter Graham bought 25,140 shares of the business's stock in a transaction on Friday, June 5th. The stock was bought at an average price of $17.19 per share, for a total transaction of $432,156.60. Following the transaction, the director directly owned 256,689 shares in the company, valued at $4,412,483.91. This represents a 10.86% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 10.40% of the company's stock.

Hedge Funds Weigh In On Montrose Environmental Group

A number of hedge funds have recently modified their holdings of ONT. Advisory Services Network LLC purchased a new stake in shares of Montrose Environmental Group during the third quarter worth $32,000. Canada Pension Plan Investment Board increased its position in Montrose Environmental Group by 533.3% in the 2nd 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 last quarter. Dixon Mitchell Investment Counsel Inc. acquired a new position in Montrose Environmental Group in the 4th quarter worth about $75,000. Tower Research Capital LLC TRC raised its stake in shares of Montrose Environmental Group by 95.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,085 shares of the company's stock worth $68,000 after purchasing an additional 1,508 shares in the last quarter. Finally, Assetmark Inc. purchased a new stake in shares of Montrose Environmental Group during the 4th quarter worth about $84,000. 87.87% of the stock is owned by institutional investors and hedge funds.

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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