Montrose Environmental Group (MEG) Stock Sold Off on Missed Profit Guidance

Conestoga Capital Advisors, an asset management company, released its “Micro Cap Strategy” first-quarter 2023 investor letter. A copy of the same can be downloaded here. The Micro Cap Composite rose 2.93% net of fees in the first quarter, compared to the Russell Microcap Growth Index’s 0.76% return. The Strategy posted 10.45% annualized returns since its inception at the end of 2019. Both positive stock selection and sector allocation equally contributed to the relative outperformance of the strategy in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Conestoga Micro Cap Strategy highlighted stocks like Montrose Environmental Group, Inc. (NYSE:MEG) in the first quarter 2023 investor letter. Headquartered in North Little Rock, Arkansas, Montrose Environmental Group, Inc. (NYSE:MEG) is an environmental services company. On May 26, 2023, Montrose Environmental Group, Inc. (NYSE:MEG) stock closed at $35.84 per share. One-month return of Montrose Environmental Group, Inc. (NYSE:MEG) was 17.66%, and its shares lost 13.05% of their value over the last 52 weeks. Montrose Environmental Group, Inc. (NYSE:MEG) has a market capitalization of $1.078 billion.

Conestoga Micro Cap Strategy made the following comment about Montrose Environmental Group, Inc. (NYSE:MEG) in its Q1 2023 investor letter:

“Montrose Environmental Group, Inc. (NYSE:MEG): MEG is a services company that offers end-to-end solutions for addressing environmental issues. The stock sold off sharply after the company missed its implied fourth quarter profit guidance by a wide margin driven by overstaffing following two storms coupled with an unfavorable business mix.”

Montrose Environmental Group, Inc. (NYSE:MEG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Montrose Environmental Group, Inc. (NYSE:MEG) at the end of first quarter 2023 which was 8 in the previous quarter.

We discussed Montrose Environmental Group, Inc. (NYSE:MEG) in another article and shared Baron Discovery Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.