Montrose Environmental Group (NYSE:ONT) Stock Jumps 4.2% - Still a Buy?

Key Points

• Montrose Environmental Group shares rose 4.2% to $14.59 in mid-day trading, although trading volume was 71% below the stock’s average daily volume.
• Analyst sentiment remains cautious: the stock has a consensus rating of “Reduce”, with one Buy, three Hold, and two Sell ratings. The consensus price target is $19.50, while several analysts recently lowered their targets.
• The company beat quarterly expectations, reporting $0.51 in EPS versus the $0.08 consensus and $186.66 million in revenue versus $179.69 million expected. Institutional investors own approximately 87.87% of the shares.

Montrose Environmental Group, Inc. (NYSE:ONT - Get Free Report) shot up 4.2% during mid-day trading on Monday. The stock traded as high as $14.69 and last traded at $14.59. 158,681 shares traded hands during mid-day trading, a decline of 71% from the average daily volume of 546,979 shares. The stock had previously closed at $14.00.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the company. Bank of America lowered Montrose Environmental Group from a "neutral" rating to an "underperform" rating and set a $18.00 price objective for the company. in a research report on Thursday, August 6th. Needham & Company LLC cut their price objective on shares of Montrose Environmental Group from $28.00 to $23.00 and set a "buy" rating on the stock 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 reiterated an "equal weight" rating and set a $15.00 price target (down from $19.00) on shares of Montrose Environmental Group in a report on Friday, August 7th. Finally, JPMorgan Chase & Co. lowered their price objective on Montrose Environmental Group from $24.00 to $22.00 and set a "neutral" rating on the stock in a research report on Monday, July 13th. One research analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Reduce" and a consensus target price of $19.50.

Montrose Environmental Group Price Performance

The company has a debt-to-equity ratio of 0.84, a quick ratio of 2.00 and a current ratio of 2.00. The firm has a fifty day simple moving average of $17.85 and a 200 day simple moving average of $19.08. The company has a market capitalization of $499.76 million, a PE ratio of -43.12, a P/E/G ratio of 1.44 and a beta of 1.65.

Montrose Environmental Group (NYSE:ONT - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.51 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.08 by $0.43. Montrose Environmental Group had a negative net margin of 1.44% and a positive return on equity of 4.11%. The business had revenue of $186.66 million for the quarter, compared to analyst estimates of $179.69 million. Equities analysts anticipate that Montrose Environmental Group, Inc. will post 0.74 EPS for the current year.

Institutional Trading of Montrose Environmental Group

A number of institutional investors have recently modified their holdings of the business. OP Asset Management Ltd acquired a new position in shares of Montrose Environmental Group during the 1st quarter valued at $3,418,000. Principal Financial Group Inc. raised its stake in shares of Montrose Environmental Group by 5.2% during the first quarter. Principal Financial Group Inc. now owns 1,346,257 shares of the company's stock valued at $29,470,000 after purchasing an additional 66,543 shares during the period. Legal & General Group Plc lifted its position in shares of Montrose Environmental Group by 3.7% during the fourth quarter. Legal & General Group Plc now owns 638,630 shares of the company's stock worth $15,857,000 after purchasing an additional 22,711 shares in the last quarter. CenterBook Partners LP boosted its stake in shares of Montrose Environmental Group by 17.6% in the fourth quarter. CenterBook Partners LP now owns 110,820 shares of the company's stock valued at $2,752,000 after purchasing an additional 16,611 shares during the period. Finally, Jupiter Asset Management Ltd. acquired a new stake in Montrose Environmental Group during the 4th quarter valued at $357,000. 87.87% of the stock is currently owned by hedge funds and other institutional investors.

About Montrose Environmental Group

Montrose Environmental Group, Inc is an environmental services company that helps industrial, commercial, governmental and other organizations address environmental compliance, pollution control and sustainability challenges. Its services support clients throughout the life cycle of environmental projects, from assessment and permitting to monitoring, remediation and long-term management.

The company provides environmental measurement and analysis, air quality and emissions monitoring, environmental consulting, regulatory compliance support, emergency response, site investigation and remediation services.

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