LGN (NASDAQ:LGN) Stock Falls 13% - Should You Sell?

Key Points

• LGN shares fell 13% to about $34.07 in Wednesday mid-day trading, while trading volume was 87% below its average.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $96.67, though recent target changes were mixed.
• The company reported a quarterly loss of $0.37 per share, missing the $0.26-per-share consensus estimate; revenue was $1.26 billion.

Shares of LGN (NASDAQ:LGN - Get Free Report) dropped 13% during mid-day trading on Wednesday. The stock traded as low as $33.46 and last traded at $34.0720. Approximately 185,832 shares were traded during trading, a decline of 87% from the average session volume of 1,382,387 shares. The stock had previously closed at $39.16.

Wall Street Analyst Weigh In

LGN has been the subject of several recent analyst reports. BTIG Research restated a "buy" rating and issued a $100.00 price target (down from $120.00) on shares of LGN in a report on Friday, August 14th. Tigress Financial boosted their target price on shares of LGN from $125.00 to $130.00 and gave the company a "buy" rating in a report on Wednesday, August 19th. BMO Capital Markets upped their price target on shares of LGN from $100.00 to $105.00 and gave the stock an "outperform" rating in a research report on Friday, August 14th. Royal Bank Of Canada decreased their price target on shares of LGN from $101.00 to $90.00 and set an "outperform" rating on the stock in a report on Thursday, October 15th. Finally, Roth Capital reissued a "buy" rating and set a $120.00 price objective on shares of LGN in a research note on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, LGN currently has an average rating of "Moderate Buy" and an average price target of $96.67.

LGN Price Performance

The business has a fifty day moving average of $49.66 and a 200 day moving average of $62.89. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.35 and a quick ratio of 1.35. The stock has a market cap of $3.45 billion, a PE ratio of 79.91 and a beta of 3.42.

LGN (NASDAQ:LGN - Get Free Report) last announced its earnings results on Thursday, August 13th. The company reported ($0.37) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.26 by ($0.63). The business had revenue of $1.26 billion during the quarter. LGN had a negative net margin of 1.20% and a positive return on equity of 4.33%. Sell-side analysts anticipate that LGN will post 1.36 earnings per share for the current year.

Insider Transactions at LGN

In related news, CAO Bris Philippe Le sold 1,058 shares of the company's stock in a transaction 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 sale, the chief accounting officer directly owned 4,749 shares of the company's stock, valued at $261,242.49. This represents a 18.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 0.01% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On LGN

Several hedge funds and other institutional investors have recently modified their holdings of LGN. Reyes Financial Architecture Inc. bought a new position in LGN during the third quarter worth $45,000. KBC Group NV bought a new stake in LGN during the first quarter valued at $66,000. Nykredit A S bought a new stake in LGN during the second quarter valued at $128,000. Avior Wealth Management LLC acquired a new stake in shares of LGN during the second quarter worth $203,000. Finally, Concurrent Investment Advisors LLC acquired a new stake in shares of LGN during the second quarter worth $237,000.

About LGN

Legence Corp. NASDAQ: LGN is an energy-transition solutions provider that helps commercial, industrial and institutional customers improve building performance, reduce energy use and advance decarbonization goals. The company combines technical expertise, project delivery and operational services to address the energy and sustainability needs of complex facilities and infrastructure.

Its services include engineering and design, energy-efficiency improvements, building systems and infrastructure work, renewable-energy and electrification projects, sustainability consulting, and ongoing operations and maintenance.

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