Leggett & Platt Inc. (LEG) Raised to “Hold” at Zacks Investment Research
Leggett & Platt Inc. (NYSE:LEG) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Thursday.
According to Zacks, “Leggett is progressing well with its long-term strategy of achieving top-line growth of 4%–5% annually. The company is also enhancing its business portfolio by expanding operations in areas that provide competitive advantage while exiting the underperforming ones. The company maintains its disciplined capital allocation and remains keen on boosting shareholder value. However, the company’s significant global presence exposes it to adverse currency movements. Raw material price deflation and stiff competition also pose significant threats. These factors led the company’s top-line to decline for the fifth consecutive quarter in the preceding quarter. While the company provided a conservative sales outlook for 2016, it continues to anticipate generating record EPS, robust EBIT margin and enhanced cash flows this year. Nonetheless, estimates have been going down ahead of the company’s third quarter earnings release.”
Other research analysts have also issued reports about the stock. Citigroup Inc. lowered shares of Leggett & Platt to a “market perform” rating in a research note on Monday, August 1st. Raymond James Financial Inc. reissued a “market perform” rating on shares of Leggett & Platt in a research note on Monday, August 1st. Finally, Hilliard Lyons lowered shares of Leggett & Platt from a “neutral” rating to an “underperform” rating in a research note on Friday, July 29th.
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Leggett & Platt (NYSE:LEG) traded down 0.098% on Thursday, hitting $45.735. The stock had a trading volume of 198,510 shares. The firm has a market capitalization of $6.11 billion, a price-to-earnings ratio of 16.728 and a beta of 0.95. The stock’s 50-day moving average is $48.98 and its 200 day moving average is $49.99. Leggett & Platt has a 1-year low of $36.64 and a 1-year high of $54.63.
Leggett & Platt (NYSE:LEG) last released its earnings results on Thursday, July 28th. The company reported $0.66 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.62 by $0.04. Leggett & Platt had a net margin of 10.03% and a return on equity of 33.71%. The business had revenue of $958.90 million for the quarter, compared to analyst estimates of $1,000 million. During the same period last year, the company posted $0.53 EPS. The business’s revenue was down 3.9% on a year-over-year basis. On average, equities research analysts predict that Leggett & Platt will post $2.50 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Friday, October 14th. Stockholders of record on Thursday, September 15th will be issued a dividend of $0.34 per share. The ex-dividend date is Tuesday, September 13th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 2.97%. Leggett & Platt’s dividend payout ratio is currently 49.64%.
In other news, insider Dennis S. Park sold 3,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 1st. The shares were sold at an average price of $52.48, for a total transaction of $157,440.00. Following the completion of the sale, the insider now owns 276,697 shares in the company, valued at approximately $14,521,058.56. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Scott S. Douglas sold 2,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 24th. The stock was sold at an average price of $51.95, for a total transaction of $103,900.00. Following the sale, the senior vice president now owns 38,363 shares of the company’s stock, valued at approximately $1,992,957.85. The disclosure for this sale can be found here. Insiders own 3.92% of the company’s stock.
Hedge funds have recently made changes to their positions in the company. GW&K Investment Management LLC increased its stake in shares of Leggett & Platt by 6.6% in the second quarter. GW&K Investment Management LLC now owns 524,855 shares of the company’s stock worth $26,825,000 after buying an additional 32,346 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of Leggett & Platt by 1.3% in the first quarter. Geode Capital Management LLC now owns 1,084,978 shares of the company’s stock worth $52,403,000 after buying an additional 13,709 shares in the last quarter. PGGM Investments increased its stake in shares of Leggett & Platt by 378.9% in the second quarter. PGGM Investments now owns 627,027 shares of the company’s stock worth $32,047,000 after buying an additional 496,097 shares in the last quarter. Speece Thorson Capital Group Inc. increased its stake in shares of Leggett & Platt by 1.4% in the second quarter. Speece Thorson Capital Group Inc. now owns 278,985 shares of the company’s stock worth $14,259,000 after buying an additional 3,748 shares in the last quarter. Finally, Bank of Montreal Can purchased a new stake in shares of Leggett & Platt during the second quarter worth about $15,286,000. Institutional investors and hedge funds own 66.41% of the company’s stock.
About Leggett & Platt
Leggett & Platt, Incorporated is a manufacturer of engineered components and products found in homes, offices, automobiles and commercial aircraft. The Company operates in four segments: Residential Furnishings, Commercial Products, Industrial Materials and Specialized Products. The Residential Furnishings segment manufactures steel coiled bedsprings.
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