Montrose Environmental Group (NYSE:MEG) Stock Experiences 9.6% Decline - Should Investors Be Concerned?

On Thursday, Montrose Environmental Group, Inc. (NYSE:MEG) saw its stock price drop by 9.6% during mid-day trading. The stock reached a low of $17.93 before closing at $17.99. During this trading session, approximately 262,290 shares were exchanged, indicating a significant decline of 46% from the average daily volume of 486,327 shares. Previously, the stock closed at $19.90.

Wall Street Analysts' Opinions

Several analysts have shared their insights regarding Montrose Environmental Group in recent days. Needham & Company LLC reaffirmed a "buy" rating, assigning a price target of $39.00. On the other hand, JPMorgan Chase & Co. maintained a "neutral" rating but lowered their target price from $48.00 to $29.00. Evercore ISI also reduced their price target from $40.00 to $33.00 while keeping an "outperform" rating. Stifel Nicolaus adjusted their price objective from $41.00 to $38.00, continuing to hold a "buy" rating. Furthermore, Bank of America downgraded the stock from a "buy" rating to a "neutral" rating and lowered their price target from $52.00 to $29.00. In terms of ratings, two investment analysts have categorized the stock as a hold, while three have recommended buying shares, resulting in a consensus rating of "Moderate Buy" with an average price target of $33.60 according to MarketBeat.

Stock Performance Details

Currently, the fifty-day moving average for Montrose Environmental Group stands at $20.18, and the two-hundred-day moving average is $22.76. The company holds a market capitalization of $615.70 million, with a P/E ratio of -12.05 and a beta of 1.71. The firm exhibits a debt-to-equity ratio of 0.60, alongside both a quick ratio and current ratio of 1.93.

Institutional Investment in Montrose Environmental Group

Recently, a number of institutional investors have adjusted their positions in Montrose Environmental Group. Van ECK Associates Corp increased its stake by 61.8% in the third quarter, acquiring an additional 39,079 shares and now holding 102,303 shares valued at $2,757,000. Radnor Capital Management LLC entered into a new position in the company valued at around $801,000. Additionally, Privium Fund Management B.V. and Chartwell Investment Partners LLC both expanded their holdings during the same period, with Chartwell increasing its shares by 33.5%, amounting to 23,351 shares worth $614,000 post additional purchases. Overall, institutional investors and hedge funds hold 87.87% of the company's stock.

About Montrose Environmental Group

Montrose Environmental Group, Inc. is engaged in providing environmental services across the United States, Canada, and globally. The company operates via three core segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The Assessment, Permitting and Response segment offers various scientific advisory and consulting services aimed at supporting environmental assessments, emergency response and recovery, as well as toxicology consulting and audits for operational permits and facility upgrades.

Considerations for Investors

Before deciding to invest in Montrose Environmental Group, potential investors should carefully consider the current market sentiments and analyst ratings. Although the stock has received a "Moderate Buy" consensus rating, some analysts have identified other stocks that may be more appealing at this time. Thus, it may be prudent for those interested in the environmental services sector to conduct thorough research and evaluate all options before making financial decisions regarding MEG.

Montrose, Stock, Investing