LGN (NASDAQ:LGN) Shares Climb 12.4% - Should You Buy?

Key Points

• LGN shares jumped 12.4% to $31.37, while trading volume was 58% below the average session volume.
• Analysts’ consensus rating is “Moderate Buy”, with an average price target of $96.67, though opinions range from Strong Buy to Sell and some firms have lowered targets.
• In its latest reported quarter, LGN posted an EPS loss of $0.37, missing the $0.26 consensus estimate; revenue was $1.26 billion and net margin was negative 1.20%.

LGN (NASDAQ:LGN - Get Free Report) shares were up 12.4% on Monday. The stock traded as high as $31.38 and last traded at $31.3710. 601,960 shares changed hands during mid-day trading, a decline of 58% from the average session volume of 1,420,634 shares. The stock had previously closed at $27.91.

Analysts Set New Price Targets

LGN has been the subject of several analyst reports. Roth Capital reissued a "buy" rating and set a $120.00 price target on shares of LGN in a report on Wednesday, August 12th. Zacks Research cut shares of LGN from a "strong-buy" rating to a "hold" rating in a research note on Friday, October 16th. BMO Capital Markets lifted their target price on shares of LGN from $100.00 to $105.00 and gave the company an "outperform" rating in a research note on Friday, August 14th. Stifel Nicolaus reduced their target price on LGN from $101.00 to $82.00 and set a "buy" rating on the stock in a report on Thursday, October 8th. Finally, BTIG Research restated a "buy" rating and set a $100.00 price target (down from $120.00) on shares of LGN in a research report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, LGN has a consensus rating of "Moderate Buy" and an average price target of $96.67.

LGN Price Performance

The stock has a fifty day moving average of $47.92 and a 200-day moving average of $62.60. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 1.03. The firm has a market capitalization of $3.39 billion, a P/E ratio of 78.44 and a beta of 3.42.

LGN (NASDAQ:LGN - Get Free Report) last issued its quarterly earnings data on Thursday, August 13th. The company reported ($0.37) EPS for the quarter, missing analysts' consensus estimates of $0.26 by ($0.63). The company had revenue of $1.26 billion for the quarter. LGN had a positive return on equity of 4.33% and a negative net margin of 1.20%. Equities analysts predict that LGN will post 1.36 EPS for the current fiscal year.

Insider Activity at LGN

In related news, CAO Bris Philippe Le sold 1,058 shares of the firm's stock in a transaction that occurred on Friday, September 18th. The shares were sold at an average price of $55.01, for a total value of $58,200.58. Following the completion of the sale, the chief accounting officer owned 4,749 shares of the company's stock, valued at $261,242.49. This trade represents a 18.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.01% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of LGN. Allworth Financial LP increased its stake in shares of LGN by 1,887.5% in the 3rd quarter. Allworth Financial LP now owns 477 shares of the company's stock valued at $26,000 after buying an additional 453 shares during the period. Fifth Third Bancorp lifted its stake in shares of LGN by 1.3% during the third quarter. Fifth Third Bancorp now owns 52,731 shares of the company's stock valued at $2,831,000 after acquiring an additional 670 shares during the period. Reyes Financial Architecture Inc. bought a new position in LGN in the third quarter valued at about $45,000. KBC Group NV bought a new position in LGN in the first quarter valued at about $66,000. Finally, Nykredit A S acquired a new stake in LGN in the second quarter worth about $128,000.

About LGN

Legence Corp. provides engineering, installation and maintenance services for building systems. Its work includes heating, ventilation and air conditioning, plumbing, electrical systems, process piping, building automation and energy solutions.

The company serves customers with complex building needs, including in the data center, healthcare, life sciences, commercial and industrial sectors. Its services span the building lifecycle, from design and construction to ongoing operations and maintenance.

Legence was formerly known as Southland Industries, a building systems contractor founded in 1949.

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