American Century Companies Inc. has lowered its stake in Lindsay Co. (NYSE:LNN) by 35.0%, according to a Form 13F filing with the SEC on June 9, 2023. This move by American Century Companies Inc. comes after it sold 43,245 shares during the fourth quarter, which brought the firm’s total number of shares owned down to just 80,171.
For those unfamiliar with Lindsay Co., the company primarily engages in the manufacture and distribution of irrigation and infrastructure equipment and technology; this is divided into two segments: Irrigation and Infrastructure. The Irrigation segment focuses on manufacturing and marketing center pivot, lateral move, and hose reel irrigation systems while offering innovative technology solutions including GPS positioning and guidance, variable rate irrigation, wireless irrigation management, M2M communication technology, as well as smartphone applications.
At market close on Friday after this news broke, NYSE:LNN was priced at $126.03 per share. The company has a debt-to-equity ratio of 0.27 with both a quick ratio of 2.27 and current ratio of 3.62 respectively; these figures ultimately show the company’s financial health by measuring its ability to pay off debt obligations before they are due using either short-term or long-term assets respectively.
Over the past year, Lindsay Co.’s stocks have experienced a high of $183.08 to a low of $116.16 with a current market cap of $1.39 billion as well as a price-to-earnings ratio of 17.55 and PEG ratio of .98 reflecting its potential for future growth opportunities in comparison to profitability valuation metrics such as P/E ratios alone.
Furthermore, analysts maintain that even though LNN may have decreased in value over time due to increasing competition within the industry from other companies producing similar products at lower prices coupled with pressures from environmental factors; they predict an uptick in demand for LNN’s products as climate change continues to exacerbate global droughts causing strains on traditional water sources.
In conclusion, it remains to be seen whether American Century Companies Inc.’s decision to reduce its stake in Lindsay Co. will have any larger ramifications for the company’s success or lack thereof. However, many believe that Lindsay Co.’s innovative technologies coupled with strong demand means it is a company that should provide both growth and stability for investors looking for long-term yields.
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Lindsay Corp. Achieves Resilience and Shareholder Value Creation through Innovation in Agricultural Technology
Lindsay Corp. is a renowned firm that engages in the manufacture and distribution of irrigation and infrastructure equipment and technology, including center pivot, lateral move, and hose reel irrigation systems. With innovative solutions such as GPS positioning and guidance, variable rate irrigation, wireless irrigation management, M2M communication technology, and smartphone applications, the company aims to create sustainable agriculture ecosystems for farmers across the globe.
Recently, several research analysts issued reports on Lindsay’s stock. Stifel Nicolaus cut their target price on Lindsay from $196.00 to $166.00 but maintained a “buy” rating on the stock in a research report released on Wednesday, April 5th. Roth Mkm also lowered Lindsay’s price target from $178.00 to $143.00 while setting a “neutral” rating on the stock in another research report published on Wednesday, April 5th.
On Thursday May 18th, StockNews.com began coverage of Lindsay with a “hold” rating assigned to the stock.
A number of other hedge funds have recently modified their holdings of Lindsay Corp.’s stock. For instance, Point72 Hong Kong Ltd acquired shares valued at about $64,000 in the third quarter of last year; Royal Bank of Canada increased its holdings by 23.6% in the same period; Advisor Group Holdings Inc., during the fourth quarter alone saw an investment yield growth of 130%; Captrust Financial Advisors increased its investments by 21.3%, while Sei Investments Co purchased a new position in shares of Lindsay valued at approximately $202,000 during Q4.
The company released its quarterly earnings data for Q1 2023 recently announcing an EPS (earnings per share) for “$1.63” beating analyst consensus estimate estimates by “$0.20”. The firm’s revenue was down “16.9%”, compared to the same quarter year before representing resilience amidst economic turbulence. The research analysts predict the firm will post “$6.85 EPS for the current year”.
Lindsay Corp.’s management team is committed to shareholder value creation and has announced a quarterly dividend of $0.34, which was paid on May 31st to shareholders of record as of May 17th. Lindsay Corp.’s dividend payout ratio is currently set at a hefty 18.94%.
With institutional investors controlling up to 84.79% of Lindsay’s stock, it is evident that the company has built confidence amongst its stakeholders over time, making it a safe investment option in the agricultural industry. Their innovative solutions are in demand across globally increasing LNN’s potential growth and shareholder rewards inevitably.