LGN (NASDAQ:LGN) Stock Price Down 8.5% - Should You Sell?

Key Points

• LGN fell 8.5% Thursday to about $33.94, with trading volume 77% below its average.
• Legence beat Q3 EPS estimates ($1.15 versus $0.50) on record revenue of $1.31 billion, and raised its 2026 outlook while issuing 2027 guidance. However, its net margin remained negative at 1.2%.
• Analysts retain a consensus “Moderate Buy” rating and a $96.67 price target, though the stock’s recent decline and high valuation may be relevant to investors weighing the outlook.

LGN (NASDAQ:LGN - Get Free Report) was down 8.5% during trading on Thursday. The company traded as low as $33.46 and last traded at $33.9350. 325,384 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 1,432,913 shares. The stock had previously closed at $37.09.

Latest LGN News

Investors following LGN have been watching these news items:

• Positive Sentiment: Q3 revenue reached a record $1.31 billion, and EPS of $1.15 substantially exceeded analyst estimates. Adjusted EBITDA nearly doubled year over year; revenue grew 40% excluding the Bowers acquisition. Legence Q3 2026 financial results
• Positive Sentiment: Legence raised its 2026 revenue guidance to $4.87–$4.91 billion and adjusted EBITDA guidance to $610–$620 million. It also issued 2027 revenue guidance of $5.3–$5.6 billion and adjusted EBITDA guidance of $690–$730 million.
• Negative Sentiment: Despite the earnings beat, Legence’s reported net margin remained negative at 1.2%, a profitability concern alongside the strong growth outlook.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on LGN shares. Roth Capital reiterated a "buy" rating and issued a $120.00 target price on shares of LGN in a research note on Wednesday, August 12th. Bank of America raised their price target on shares of LGN from $105.00 to $116.00 and gave the company a "buy" rating in a research report on Friday, August 14th. Tigress Financial boosted their price target on shares of LGN from $125.00 to $130.00 and gave the stock a "buy" rating in a report on Wednesday, August 19th. BTIG Research restated a "buy" rating and set a $100.00 price target (down from $120.00) on shares of LGN in a report on Friday, August 14th. Finally, Guggenheim reaffirmed a "buy" rating and issued a $90.00 price objective on shares of LGN in a research report on Monday, October 26th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, LGN currently has an average rating of "Moderate Buy" and a consensus price target of $96.67.

LGN Stock Down 2.9%

The stock has a 50-day moving average of $46.76 and a 200 day moving average of $62.37. The company has a market capitalization of $3.89 billion, a PE ratio of 89.66 and a beta of 3.42. 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 posted its quarterly earnings data on Thursday, November 12th. The company reported $1.15 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.65. LGN had a positive return on equity of 4.33% and a negative net margin of 1.20%. The business had revenue of $1.31 billion for the quarter. Sell-side analysts anticipate that LGN will post 1.36 EPS for the current year.

Insider Activity

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

Hedge Funds Weigh In On LGN

A number of hedge funds and other institutional investors have recently made changes to their positions in LGN. Allworth Financial LP grew its position in LGN by 1,887.5% during the third 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. Reyes Financial Architecture Inc. bought a new stake in LGN in the third quarter worth about $45,000. Global Retirement Partners LLC bought a new stake in LGN in the third quarter worth about $58,000. KBC Group NV bought a new stake in LGN in the first quarter worth about $66,000. Finally, Nykredit A S purchased a new position in LGN in the second quarter valued at about $128,000.

LGN Company Profile

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.

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