Leggett & Platt Incorporated (NYSE: LEG) stock fell -4.81% on Monday to $24.95 against a previous-day closing price of $26.21. With 1.98 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.46 million shares. During the session, the Furnishings Fixtures & Appliances company that operates in wider Consumer Cyclical sector, reached to the highest price of $26.17 whereas the lowest price it dropped to was $24.85. The 52-week range on LEG shows that it touched its highest point at $38.55 and its lowest point at $26.08 during that stretch. It currently has a 1-year price target of $28.00. With its current market cap of 3.40 billion, LEG has annualized dividend of $1.84 while the current yield stands at 7.37%. Beta for the stock currently stands at 1.30.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LEG was down-trending over the past week, with a drop of -7.08%, but this was down by -10.09% over a month. Three-month performance dropped to -20.03% while six-month performance fell -17.47%. The stock lost -32.11% in the past year, while it has lost -22.59% so far this year. A look at the trailing 12-month EPS for LEG yields 1.70 with Next year EPS estimates of 1.71. For the next quarter, that number is 0.40. This implies an EPS growth rate of -22.90% for this year and 11.75% for next year. EPS is expected to grow by 5.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -2.00%.
Float and Shares Shorts:
At present, 136.20 million LEG shares are outstanding with a float of 131.11 million shares on hand for trading. On Aug 30, 2023, short shares totaled 5.86 million, which was 4.40% higher than short shares on Jul 30, 2023. In addition to Mr. J. Mitchell Dolloff as the firm’s CEO, Pres & Director, Mr. Steven K. Henderson serves as its Exec. VP and Pres of Specialized Products & Furniture, Flooring & Textile Products.
Through their ownership of 71.22% of LEG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 9.80% of LEG, in contrast to 36.39% held by mutual funds. Shares owned by individuals account for 27.15%. As the largest shareholder in LEG with 10.69% of the stake, BlackRock Fund Advisors holds 14,233,424 shares worth 14,233,424. A second-largest stockholder of LEG, The Vanguard Group, Inc., holds 12,647,614 shares, controlling over 9.50% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in LEG, holding 7,134,615 shares or 5.36% stake. With a 3.23% stake in LEG, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 4,296,471 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.93% of LEG stock, is the second-largest Mutual Fund holder. It holds 3,903,872 shares valued at 110.09 million. Vanguard Small Cap Index Fund holds 2.47% of the stake in LEG, owning 3,294,455 shares worth 92.9 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, LEG reported revenue of $1.33B and operating income of $146.60M. The EBITDA in the recently reported quarter was $187.50M and diluted EPS was $0.70.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LEG since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With LEG analysts setting a high price target of $32.00 and a low target of $21.00, the average target price over the next 12 months is $28.00. Based on these targets, LEG could surge 28.26% to reach the target high and fall by -15.83% to reach the target low. Reaching the average price target will result in a growth of 12.22% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded LEG stock several times over the past three months with 81 Buys and 2 Sells. In these transactions, 27,872 shares were bought while 14,474 shares were sold. The number of buy transactions has increased to 566 while that of sell transactions has risen to 56 over the past year. The total number of shares bought during that period was 377,299 while 106,480 shares were sold.