Leggett & Platt Inc. (LEG) Lowered to “Sell” at Zacks Investment Research
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.”
LEG has been the subject of several other reports. Hilliard Lyons cut shares of Leggett & Platt from a neutral rating to an underperform rating in a report on Friday, July 29th. Raymond James Financial Inc. reaffirmed a market perform rating on shares of Leggett & Platt in a report on Monday, August 1st. Finally, Citigroup Inc. cut shares of Leggett & Platt to a market perform rating in a report on Monday, August 1st.
Leggett & Platt (NYSE:LEG) traded up 0.58% on Tuesday, reaching $45.43. 214,165 shares of the company traded hands. The stock has a market capitalization of $6.07 billion, a price-to-earnings ratio of 16.62 and a beta of 0.95. Leggett & Platt has a 1-year low of $36.64 and a 1-year high of $54.63. The stock’s 50-day moving average is $50.07 and its 200-day moving average is $50.09.
Leggett & Platt (NYSE:LEG) last issued its earnings results on Thursday, July 28th. The company reported $0.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.04. The business earned $958.90 million during the quarter, compared to analysts’ expectations of $1,000 million. Leggett & Platt had a net margin of 10.03% and a return on equity of 33.71%. The business’s revenue for the quarter was down 3.9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.53 earnings per share. Equities research analysts expect that Leggett & Platt will post $2.50 EPS for the current year.
The business also recently disclosed 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 annualized dividend and a dividend yield of 3.01%. Leggett & Platt’s payout ratio is 49.64%.
In related news, insider Dennis S. Park sold 3,000 shares of the business’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 directly owns 276,697 shares in the company, valued at $14,521,058.56. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Scott S. Douglas sold 2,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 24th. The shares were 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 $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 stock. Kentucky Retirement Systems Insurance Trust Fund acquired a new stake in shares of Leggett & Platt during the second quarter valued at about $277,000. Kentucky Retirement Systems acquired a new stake in shares of Leggett & Platt during the second quarter valued at about $584,000. Mason Street Advisors LLC acquired a new stake in shares of Leggett & Platt during the second quarter valued at about $925,000. Royal Bank of Canada raised its stake in shares of Leggett & Platt by 61.0% in the second quarter. Royal Bank of Canada now owns 141,866 shares of the company’s stock valued at $7,252,000 after buying an additional 53,744 shares during the period. Finally, Public Employees Retirement System of Ohio raised its stake in shares of Leggett & Platt by 14.3% in the second quarter. Public Employees Retirement System of Ohio now owns 72,009 shares of the company’s stock valued at $3,680,000 after buying an additional 8,989 shares during the period. Institutional investors own 66.43% of the company’s stock.
Leggett & Platt Company Profile
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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