Montrose Environmental Group (NYSE:ONT) Shares Gap Up Following Strong Earnings

Key Points

• Montrose shares jumped after earnings: The stock opened at $18.17, up from its prior close of $16.13, and later traded at $18.92.
• Quarterly results topped expectations: Earnings per share were $0.31 versus the $0.23 consensus, while revenue of $203.04 million exceeded the $201.10 million estimate.
• Analyst sentiment remains cautious: The stock has a consensus “Reduce” rating and a $17.50 price target, with ratings split among one Buy, three Holds, and two Sells.

Montrose Environmental Group, Inc. (NYSE:ONT - Get Free Report) shares gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $16.13, but opened at $18.17. Montrose Environmental Group shares last traded at $18.92, with a volume of 117,056 shares.

The company reported $0.31 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.23 by $0.08. The company had revenue of $203.04 million during the quarter, compared to the consensus estimate of $201.10 million. Montrose Environmental Group had a positive return on equity of 4.11% and a negative net margin of 1.44%.

Analyst Ratings Changes

ONT has been the subject of several research reports. Needham & Company LLC dropped their target price on Montrose Environmental Group from $28.00 to $23.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Wall Street Zen downgraded shares of Montrose Environmental Group from a "hold" rating to a "sell" rating in a research note on Monday, August 3rd. Barclays cut shares of Montrose Environmental Group from an "overweight" rating to an "equal weight" rating and cut their target price for the company from $19.00 to $15.00 in a report on Friday, August 7th. Weiss Ratings cut Montrose Environmental Group from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Tuesday, September 22nd. Finally, JPMorgan Chase & Co. reduced their target price on Montrose Environmental Group from $16.00 to $14.00 and set a "neutral" rating for the company in a report on Thursday, October 8th. One research analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus price target of $17.50.

Institutional Investors Weigh In On Montrose Environmental Group

A number of large investors have recently modified their holdings of ONT. Hillsdale Investment Management Inc. raised its stake in shares of Montrose Environmental Group by 3,733.3% in the 1st quarter. Hillsdale Investment Management Inc. now owns 11,500 shares of the company's stock valued at $252,000 after purchasing an additional 11,200 shares in the last quarter. Principal Financial Group Inc. raised its stake in Montrose Environmental Group by 5.2% during the 1st quarter. Principal Financial Group Inc. now owns 1,346,257 shares of the company's stock valued at $29,470,000 after acquiring an additional 66,543 shares in the last quarter. Fifth Third Bancorp bought a new stake in shares of Montrose Environmental Group during the 1st quarter worth about $201,000. Finally, Hsbc Holdings PLC lifted its position in Montrose Environmental Group by 41.9% in the first quarter. Hsbc Holdings PLC now owns 15,228 shares of the company's stock worth $328,000 after purchasing an additional 4,493 shares during the period. Institutional investors and hedge funds own 87.87% of the company's stock.

Montrose Environmental Group Trading Up 17.7%

The company has a debt-to-equity ratio of 0.84, a current ratio of 2.00 and a quick ratio of 2.00. The business has a fifty day moving average of $15.59 and a 200-day moving average of $19.26. The stock has a market capitalization of $666.58 million, a price-to-earnings ratio of -57.51, a price-to-earnings-growth ratio of 1.61 and a beta of 1.80.

Montrose Environmental Group Company Profile

Montrose Environmental Group, Inc is an environmental services company that helps industrial, commercial, government and other organizations address environmental compliance, sustainability and risk-management needs. Its services span the full project life cycle, from environmental assessment and permitting to monitoring, remediation and ongoing compliance support.

The company provides air quality and emissions testing, environmental laboratory services, consulting, engineering, water and waste management, environmental health and safety support, and remediation services.

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