LGN (NASDAQ:LGN) Stock Falls 3.9% Following Analyst Downgrade

Key Points

• LGN shares fell 3.9% to about $42.51 after Zacks Research downgraded the stock from Strong Buy to Hold; trading volume was 97% below the average.
• Analyst sentiment remains generally positive, with a consensus rating of Moderate Buy and an average price target of $98.75, despite several recent target-price cuts.
• LGN recently missed quarterly earnings expectations, reporting a loss of $0.37 per share versus the estimated $0.26 profit, while revenue reached $1.26 billion.

Shares of LGN (NASDAQ:LGN - Get Free Report) traded down 3.9% during trading on Tuesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $41.06 and last traded at $42.5070. 47,665 shares were traded during trading, a decline of 97% from the average daily volume of 1,369,316 shares. The stock had previously closed at $44.21.

Other analysts have also issued research reports about the company. Royal Bank Of Canada lowered their target price on LGN from $101.00 to $90.00 and set an "outperform" rating on the stock in a report on Thursday, October 15th. BTIG Research reaffirmed a "buy" rating and set a $100.00 price target (down from $120.00) on shares of LGN in a research note on Friday, August 14th. Weiss Ratings lowered shares of LGN from a "sell (d)" rating to a "sell (d-)" rating in a research report on Thursday, October 8th. Bank of America boosted their price objective on shares of LGN from $105.00 to $116.00 and gave the stock a "buy" rating in a research report on Friday, August 14th. Finally, Roth Capital reissued a "buy" rating and issued a $120.00 price objective on shares of LGN in a research note on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, LGN has an average rating of "Moderate Buy" and a consensus price target of $98.75.

Insiders Place Their Bets

In other news, CAO Bris Philippe Le sold 4,196 shares of the company's stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $54.06, for a total transaction of $226,835.76. Following the completion of the sale, the chief accounting officer directly owned 6,148 shares in the company, valued at $332,360.88. This represents a 40.56% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 0.01% of the stock is currently owned by corporate insiders.

Institutional Trading of LGN

Hedge funds have recently made changes to their positions in the stock. KBC Group NV bought a new position in shares of LGN in the 1st quarter worth about $66,000. Nykredit A S bought a new stake in shares of LGN during the 2nd quarter valued at about $128,000. Avior Wealth Management LLC bought a new stake in shares of LGN during the 2nd quarter valued at about $203,000. Concurrent Investment Advisors LLC bought a new stake in shares of LGN during the 2nd quarter valued at about $237,000. Finally, State of Alaska Department of Revenue bought a new stake in shares of LGN during the 3rd quarter valued at about $204,000.

LGN Trading Down 4.0%

The stock has a market cap of $4.58 billion and a price-to-earnings ratio of 106.22. The firm's 50 day moving average is $54.87 and its two-hundred day moving average is $69.27. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 1.03.

LGN (NASDAQ:LGN - Get Free Report) last released its quarterly earnings data 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). LGN had a negative net margin of 1.20% and a positive return on equity of 4.33%. The company had revenue of $1.26 billion for the quarter. Equities analysts anticipate that LGN will post 1.36 EPS for the current year.

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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