Limbach (NASDAQ:LMB) Sets New 52-Week Low on Analyst Downgrade

Key Points

• Limbach shares hit a new 52-week low after JPMorgan downgraded the stock to underweight and cut its price target from $60 to $50. The stock traded as low as $41.59.
• Analyst sentiment is broadly negative, with a consensus “Reduce” rating and $62 average price target; Zacks Research issued a strong-sell rating while other firms lowered targets.
• Limbach missed quarterly expectations, reporting $0.64 in earnings per share versus the $0.93 consensus estimate and revenue of $173.46 million versus $177.33 million expected.

Limbach Holdings, Inc. (NASDAQ:LMB - Get Free Report) shares reached a new 52-week low on Monday after JPMorgan Chase & Co. downgraded the stock from a neutral rating to an underweight rating. JPMorgan Chase & Co. now has a $50.00 price target on the stock, down from their previous price target of $60.00. Limbach traded as low as $41.59 and last traded at $41.71, with a volume of 427908 shares traded. The stock had previously closed at $42.90.

Several other brokerages have also weighed in on LMB. Stifel Nicolaus decreased their price objective on Limbach from $107.00 to $86.00 and set a "buy" rating on the stock in a report on Monday, August 10th. Wall Street Zen lowered Limbach from a "buy" rating to a "hold" rating in a research note on Saturday, May 9th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Limbach in a report on Wednesday, August 5th. Royal Bank Of Canada set a $50.00 target price on shares of Limbach in a research report on Friday. Finally, Zacks Research lowered shares of Limbach from a "hold" rating to a "strong sell" rating in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus price target of $62.00.

Insider Activity

In other news, EVP Jay Sharp sold 4,871 shares of the business's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $79.82, for a total value of $388,803.22. Following the sale, the executive vice president owned 73,456 shares in the company, valued at approximately $5,863,257.92. The trade was a 6.22% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 7.00% of the company's stock.

Hedge Funds Weigh In On Limbach

Several institutional investors have recently added to or reduced their stakes in LMB. BlackRock Inc. bought a new position in shares of Limbach in the second quarter valued at approximately $75,410,000. California State Teachers Retirement System grew its position in Limbach by 8,693.2% during the 2nd quarter. California State Teachers Retirement System now owns 901,131 shares of the construction company's stock worth $69,387,000 after acquiring an additional 890,883 shares during the last quarter. Invesco Ltd. grew its position in Limbach by 2,041.6% during the 2nd quarter. Invesco Ltd. now owns 400,603 shares of the construction company's stock worth $56,124,000 after acquiring an additional 381,897 shares during the last quarter. Neumeier Poma Investment Counsel LLC acquired a new stake in Limbach during the 2nd quarter valued at $24,944,381,000. Finally, Wasatch Advisors LP increased its holdings in Limbach by 37.8% during the 4th quarter. Wasatch Advisors LP now owns 997,394 shares of the construction company's stock valued at $77,647,000 after purchasing an additional 273,818 shares in the last quarter. 55.85% of the stock is owned by institutional investors.

Limbach Price Performance

The stock has a fifty day moving average of $67.71 and a two-hundred day moving average of $78.09. The company has a current ratio of 1.49, a quick ratio of 1.49 and a debt-to-equity ratio of 0.18. The stock has a market capitalization of $497.60 million, a price-to-earnings ratio of 11.50 and a beta of 1.45.

Limbach (NASDAQ:LMB - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The construction company reported $0.64 EPS for the quarter, missing analysts' consensus estimates of $0.93 by ($0.29). Limbach had a return on equity of 23.22% and a net margin of 4.42%.The business had revenue of $173.46 million during the quarter, compared to analyst estimates of $177.33 million. As a group, equities research analysts forecast that Limbach Holdings, Inc. will post 4.17 earnings per share for the current year.

Limbach Company Profile

Limbach Holdings, Inc NASDAQ: LMB is a U.S.-based mechanical construction firm specializing in the design, installation and maintenance of heating, ventilation and air conditioning (HVAC) systems, piping, plumbing and sheet metal fabrication. The company delivers comprehensive mechanical solutions to commercial, institutional, health care, education, government and industrial clients, drawing on its in-house engineering, prefabrication and construction management capabilities.

The company's service offerings encompass full-scope mechanical construction, including energy system design, direct digital controls and building automation, retrofits, testing and balancing, preventive maintenance programs and emergency response services.

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