Brandywine Global Investment Management LLC, a prominent investment firm, has recently acquired a new stake in furniture manufacturer Leggett & Platt, Incorporated (NYSE:LEG), according to the company’s latest filing with the Securities and Exchange Commission (SEC). The purchased shares amount to 64,195 and have an approximate value of $2,047,000.
This significant move by Brandywine Global Investment Management LLC reflects the firm’s confidence in Leggett & Platt’s potential for growth and financial prosperity. As one of the leading manufacturers in its industry, Leggett & Platt has consistently delivered strong performance and maintained a solid reputation among investors.
Furthermore, Leggett & Platt has demonstrated its commitment to reward shareholders by announcing a quarterly dividend. This dividend is scheduled to be paid on Friday, October 13th. Shareholders of record as of Friday, September 15th will receive a cash dividend of $0.46 per share. Annually, this amounts to a dividend payout of $1.84 per share.
The impressive dividend yield stands at approximately 7.02%, making it an attractive option for income-focused investors seeking consistent returns in today’s market environment characterized by low interest rates.
It is important to note that the ex-dividend date for this distribution is on Thursday, September 14th. Investors who purchase shares after this date will not be eligible to receive the upcoming dividend payment.
With its current payout ratio at 108.24%, some may question the sustainability of Leggett & Platt’s dividend policy. However, it is essential to consider that companies often adopt payout ratios above 100% temporarily due to various factors such as cash flow management or predicted future earnings growth.
Investors should also take into account other relevant factors when evaluating Leggett & Platt as an investment opportunity. These may include analyzing the company’s financial health, competitive position within the industry landscape, and its ability to adapt to evolving consumer demands.
In summary, Brandywine Global Investment Management LLC’s recent acquisition of a new stake in Leggett & Platt indicates confidence in the company’s performance and growth potential. Furthermore, Leggett & Platt’s announcement of a quarterly dividend demonstrates its commitment to shareholder value. However, investors should conduct thorough due diligence and consider various factors before making any investment decisions.
Leggett & Platt, Incorporated
Updated on: 19/09/2023
Debt to equity ratio: Strong Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
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Institutional Investors Show Strong Interest in Leggett & Platt as Company Works to Recover from Revenue Decline
Investors Continue to Show Interest in Leggett & Platt
In recent months, there has been significant activity among institutional investors buying and selling shares of Leggett & Platt, Incorporated. These investors include Industrial Alliance Investment Management Inc., Trust Co. of Vermont, Colonial Trust Co SC, Rockefeller Capital Management L.P., and Geneos Wealth Management Inc. Each of these investors has acquired new positions or increased their existing holdings in the company.
Industrial Alliance Investment Management Inc. made a new investment in Leggett & Platt during the fourth quarter of 2023, purchasing a position valued at approximately $48,000. Similarly, Trust Co. of Vermont bought a stake worth $51,000 in the first quarter of this year.
Colonial Trust Co SC significantly raised its position by 157.2% during the first quarter, now owning 1,775 shares valued at $57,000 after acquiring an additional 1,085 shares. In the fourth quarter of last year, Rockefeller Capital Management L.P. also expanded its stake by 179.6%, increasing its ownership to 2,024 shares valued at $64,000.
Furthermore, Geneos Wealth Management Inc. increased its position by 18.9% during the first quarter and currently owns 1,915 shares worth $66,000.
It is worth mentioning that institutional investors collectively hold 60.26% of Leggett & Platt’s stock.
On another note regarding Leggett & Platt valuation and future prospects; several brokerages have weighed in on the company’s performance and target price based on their analysis.
Truist Financial lowered its target price for Leggett & Platt from $35.00 to $31.00 but maintained a “hold” rating for the stock in a research report released on August 2nd.
StockNews.com initiated coverage on Leggett & Platt with a “hold” rating on August 17th as well.
Currently, one equities research analyst has rated the stock as a sell, while three have assigned a hold rating. The consensus rating from Bloomberg.com indicates that Leggett & Platt is presently viewed as a “Hold” with a consensus target price of $28.67.
Shares of Leggett & Platt opened at $26.21 on September 18, 2023. Over the past year, the stock has traded between a range of $26.08 and $38.55 per share.
With a market capitalization of $3.49 billion and a price-to-earnings ratio of 15.42, Leggett & Platt is deemed to be an intriguing prospect for investors seeking value in the market. The company’s beta stands at 1.28, indicating it may be slightly more volatile than the broader market.
Leggett & Platt exhibits favorable liquidity ratios with a quick ratio of 1.10 and current ratio of 1.99, suggesting it possesses the ability to meet its short-term obligations efficiently.
The company carries a debt-to-equity ratio of 1.21, which could potentially impact its financial stability in the long run.
In terms of recent financial performance, Leggett & Platt announced its quarterly earnings results on July 31st, 2023. The company reported earnings per share (EPS) of $0.38 for the quarter, falling short of the consensus estimate by ($0.01). Despite this slight miss, Leggett & Platt maintained a net margin of 4.71% and achieved a return on equityof14.02%.
During this quarter, the company generated revenue amounting to $1.22 billion compared to analyst estimates approximating $1.24 billion. This resulted in an overall decline in revenue by 8.5% compared to the same period last year when EPS stood at $0.70.
Based on average projections from equities research analysts, Leggett & Platt is expected to post earnings per share of 1.52 for the current year.
As we continue into the second half of 2023, it will be interesting to monitor how these institutional investors’ positions develop and whether Leggett & Platt can rebound from its recent revenue decline. Investors will undoubtedly keep a close eye on the company’s financial performance as they make decisions regarding their investment strategies moving forward.