Leggett & Platt (NYSE:LEG) Sees Unusually-High Trading Volume - Here's Why

Key Points

• Leggett & Platt shares saw trading volume jump 150% to approximately 5.87 million shares, while the stock traded near $9.27, down about 1% from the prior close.
• Analyst sentiment remains cautious: the stock has an average “Hold” rating and a consensus price target of $10.67, despite one firm upgrading it to “Strong Buy.” Several brokerages recently lowered their price targets.
• The company exceeded quarterly earnings and revenue expectations, reporting EPS of $0.39 and revenue of $999.7 million, although revenue declined 5.5% year over year. Leggett & Platt also maintains a quarterly dividend of $0.05 per share, representing a 2.2% annualized yield.

Shares of Leggett & Platt, Incorporated (NYSE:LEG - Get Free Report) saw unusually-strong trading volume on Wednesday . Approximately 5,865,433 shares changed hands during mid-day trading, an increase of 150% from the previous session's volume of 2,348,399 shares.The stock last traded at $9.27 and had previously closed at $9.32.

Wall Street Analyst Weigh In

Several brokerages have issued reports on LEG. Weiss Ratings downgraded Leggett & Platt from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday, July 29th. Piper Sandler dropped their price objective on shares of Leggett & Platt from $12.00 to $10.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 12th. Truist Financial reduced their target price on shares of Leggett & Platt from $13.00 to $11.00 and set a "hold" rating for the company in a report on Friday, May 8th. Finally, Zacks Research raised shares of Leggett & Platt from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 19th. One equities research analyst has rated the stock with a Strong Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $10.67.

Leggett & Platt Trading Down 1.0%

The company has a debt-to-equity ratio of 1.38, a quick ratio of 1.53 and a current ratio of 2.35. The business has a fifty day simple moving average of $10.57 and a 200 day simple moving average of $10.63. The stock has a market capitalization of $1.26 billion, a price-to-earnings ratio of 5.92 and a beta of 0.73.

Leggett & Platt (NYSE:LEG - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $0.39 earnings per share for the quarter, topping analysts' consensus estimates of $0.26 by $0.13. Leggett & Platt had a return on equity of 13.31% and a net margin of 5.64%.The company had revenue of $999.70 million during the quarter, compared to the consensus estimate of $982.86 million. During the same quarter last year, the firm earned $0.30 earnings per share. The company's revenue was down 5.5% on a year-over-year basis. As a group, research analysts expect that Leggett & Platt, Incorporated will post 1.05 EPS for the current year.

Leggett & Platt Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, August 24th. Stockholders of record on Monday, August 10th were issued a dividend of $0.05 per share. The ex-dividend date of this dividend was Monday, August 10th. This represents a $0.20 annualized dividend and a dividend yield of 2.2%. Leggett & Platt's dividend payout ratio (DPR) is currently 12.82%.

Hedge Funds Weigh In On Leggett & Platt

A number of hedge funds have recently added to or reduced their stakes in LEG. Royal Bank of Canada increased its position in shares of Leggett & Platt by 59.5% in the first quarter. Royal Bank of Canada now owns 47,054 shares of the company's stock worth $372,000 after purchasing an additional 17,561 shares during the period. Jones Financial Companies Lllp grew its stake in Leggett & Platt by 8.4% during the first quarter. Jones Financial Companies Lllp now owns 14,661 shares of the company's stock worth $116,000 after buying an additional 1,132 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Leggett & Platt by 3.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 454,096 shares of the company's stock worth $3,592,000 after buying an additional 13,187 shares in the last quarter. Jane Street Group LLC increased its holdings in Leggett & Platt by 36.3% in the 1st quarter. Jane Street Group LLC now owns 1,175,452 shares of the company's stock valued at $9,298,000 after buying an additional 312,840 shares during the period. Finally, Acadian Asset Management LLC increased its holdings in Leggett & Platt by 113.5% in the 1st quarter. Acadian Asset Management LLC now owns 109,638 shares of the company's stock valued at $866,000 after buying an additional 58,292 shares during the period. Institutional investors own 64.23% of the company's stock.

Leggett & Platt Company Profile

Leggett & Platt, Inc is a diversified manufacturer specializing in the design, engineering and production of a wide range of engineered components and products. The company's offerings span several end markets, including residential bedding, commercial and residential furniture, automotive seating and interiors, aerospace applications and industrial products. By integrating product design with proprietary manufacturing processes, Leggett & Platt serves as a key supplier to both original equipment manufacturers and aftermarket distributors.

The company's core product lines include coil springs and support systems for mattresses and furniture, adjustable bed mechanisms, engineered components such as extruded and formed metal products, and specialty foam and bedding products.

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