Lindsay (NYSE:LNN) Lifted to Strong-Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Lindsay (NYSE:LNN) from a hold rating to a strong-buy rating in a research report report published on Tuesday, Zacks.com reports. The brokerage currently has $190.00 price target on the industrial products company’s stock.

According to Zacks, “Lindsay is witnessing improving order levels aided by favorable agricultural market conditions in North America. Commodity prices are high and net farm income is near record levels as farmers are gaining from strong supply and demand fundamentals. Demand has been robust in international markets fueled by heightened concerns regarding food security due to the pandemic. These factors will continue to fuel the company's top-line growth this year. Estimates for the current year’s earnings have thus undergone positive revisions lately. The infrastructure business is also well-poised for growth, backed by strong demand for Road Zipper projects and transportation safety products. A strong balance sheet, introduction of technologically advanced products, and investment in organic growth and synergistic acquisitions will drive growth.”

Shares of NYSE:LNN opened at $163.82 on Tuesday. The firm has a market capitalization of $1.78 billion, a PE ratio of 40.85 and a beta of 0.33. Lindsay has a 1-year low of $83.00 and a 1-year high of $179.10. The business’s fifty day simple moving average is $165.22. The company has a quick ratio of 2.21, a current ratio of 3.27 and a debt-to-equity ratio of 0.36.

Lindsay (NYSE:LNN) last issued its earnings results on Monday, April 5th. The industrial products company reported $1.08 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.86 by $0.22. The company had revenue of $143.60 million for the quarter, compared to analysts’ expectations of $132.50 million. Lindsay had a net margin of 8.69% and a return on equity of 13.95%. The firm’s revenue was up 26.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.51 earnings per share. On average, sell-side analysts predict that Lindsay will post 3.43 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Friday, May 28th. Stockholders of record on Friday, May 14th were given a dividend of $0.33 per share. The ex-dividend date was Thursday, May 13th. This represents a $1.32 annualized dividend and a dividend yield of 0.81%. This is a positive change from Lindsay’s previous quarterly dividend of $0.32. Lindsay’s dividend payout ratio is currently 37.08%.

Institutional investors have recently added to or reduced their stakes in the company. Lazard Asset Management LLC bought a new position in shares of Lindsay during the fourth quarter worth about $25,000. Vantage Consulting Group Inc bought a new position in shares of Lindsay during the fourth quarter worth about $26,000. Point72 Hong Kong Ltd bought a new position in shares of Lindsay during the first quarter worth about $32,000. Veriti Management LLC bought a new position in shares of Lindsay during the fourth quarter worth about $61,000. Finally, USA Financial Portformulas Corp bought a new position in shares of Lindsay during the first quarter worth about $64,000. Institutional investors and hedge funds own 88.35% of the company’s stock.

About Lindsay

Lindsay Corporation, together with its subsidiaries, provides water management and road infrastructure products and services in the United States and internationally. The company operates in two segments, Irrigation and Infrastructure. The Irrigation segment manufactures and markets center pivot, lateral move irrigation systems, and irrigation controls under the Zimmatic brand; hose reel travelers under the Perrot and Greenfield brands; and chemical injection systems, variable rate irrigation systems, flow meters, weather stations, soil moisture sensors, and remote monitoring and control systems under the GrowSmart brand.

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