Legato Merger IV (LEGO)


Market Price (5/30/2026): $9.91 | Market Cap: $161.9 Mil
Sector: Financials | Industry: Multi-Sector Holdings

Legato Merger IV (LEGO)


Market Price (5/30/2026): $9.91
Market Cap: $161.9 Mil
Sector: Financials
Industry: Multi-Sector Holdings

Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.

0

Low stock price volatility
Vol 12M is 3.6%

Trading close to highs
Dist 52W High is -0.4%, Dist 3Y High is -0.4%

Weak multi-year price returns
2Y Excs Rtn is -44%, 3Y Excs Rtn is -83%

Key risks
LEGO key risks include [1] its failure to complete a business combination within the designated timeframe, Show more.

0 Low stock price volatility
Vol 12M is 3.6%
1 Trading close to highs
Dist 52W High is -0.4%, Dist 3Y High is -0.4%
2 Weak multi-year price returns
2Y Excs Rtn is -44%, 3Y Excs Rtn is -83%
3 Key risks
LEGO key risks include [1] its failure to complete a business combination within the designated timeframe, Show more.

Valuation, Metrics & Events

Price Chart

Why The Stock Moved

Qualitative Assessment

AI Analysis | Feedback

Updated on 5/1/2026
Legato Merger IV (LEGO) stock has remained largely at the same level since it went public on 3/16/2026 because of the following key factors:

1. Status as a Special Purpose Acquisition Company (SPAC) without a definitive merger agreement. Legato Merger IV (LEGO) is a blank check company formed with the sole purpose of identifying and merging with a private operating business. The company completed its initial public offering on January 26, 2026, with units priced at $10.00. As of May 2, 2026, Legato Merger IV has not announced a definitive business combination, meaning there is no operational business or specific merger target news to drive significant fluctuations in the stock price beyond its initial offering level.

2. Trust account with cash backing. A substantial portion of the capital raised during the IPO is held in a U.S. Treasury-backed Trust Account. As of February 28, 2026, approximately $230,738,005 was held in this account. This trust acts as a safety net, providing a redemption value for investors at approximately $10.00 per share, which typically prevents the stock price from falling significantly below this threshold before a business combination is completed or if one is not approved.

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Stock Movement Drivers

Fundamental Drivers

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Market Drivers

1/31/2026 to 5/29/2026
ReturnCorrelation
LEGO  
Market (SPY)9.6%44.6%
Sector (XLF)-3.0%28.5%

Fundamental Drivers

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Market Drivers

10/31/2025 to 5/29/2026
ReturnCorrelation
LEGO  
Market (SPY)11.5%44.6%
Sector (XLF)-0.7%28.5%

Fundamental Drivers

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Market Drivers

4/30/2025 to 5/29/2026
ReturnCorrelation
LEGO  
Market (SPY)38.0%44.6%
Sector (XLF)7.4%28.5%

Fundamental Drivers

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Market Drivers

4/30/2023 to 5/29/2026
ReturnCorrelation
LEGO  
Market (SPY)89.0%44.6%
Sector (XLF)63.2%28.5%

Return vs. Risk

Price Returns Compared

 202120222023202420252026Total [1]
Returns
LEGO Return------0%-0%
Peers Return    0%1%1%
S&P 500 Return27%-19%24%23%16%10%101%

Monthly Win Rates [3]
LEGO Win Rate-----33% 
Peers Win Rate    50%75% 
S&P 500 Win Rate75%42%67%75%67%60% 

Max Drawdowns [4]
LEGO Max Drawdown------ 
Peers Max Drawdown     -1% 
S&P 500 Max Drawdown-5%-25%-10%-8%-19%-9% 


[1] Cumulative total returns since the beginning of 2021
[2] Peers: AIIA, FVAV, CCXI.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 5/29/2026 (YTD)

How Low Can It Go

LEGO has limited trading history. Below is the Financials sector ETF (XLF) in its place.

EventXLFS&P 500
2025 US Tariff Shock
  % Loss-15.5%-18.8%
  % Gain to Breakeven18.4%23.1%
  Time to Breakeven80 days79 days
Summer-Fall 2023 Five Percent Yield Shock
  % Loss-10.7%-9.5%
  % Gain to Breakeven12.0%10.5%
  Time to Breakeven26 days24 days
2023 SVB Regional Banking Crisis
  % Loss-16.1%-6.7%
  % Gain to Breakeven19.1%7.1%
  Time to Breakeven270 days31 days
2022 Inflation Shock & Fed Tightening
  % Loss-22.3%-24.5%
  % Gain to Breakeven28.6%32.4%
  Time to Breakeven467 days427 days
2020 COVID-19 Crash
  % Loss-42.8%-33.7%
  % Gain to Breakeven74.8%50.9%
  Time to Breakeven289 days140 days
Q4 2018 Fed Policy Error / Growth Scare
  % Loss-19.7%-19.2%
  % Gain to Breakeven24.5%23.8%
  Time to Breakeven123 days105 days

Compare to AIIA, FVAV, CCXI

In The Past

State Street Financial Select Sector SPDR ETF's stock fell -15.5% during the 2025 US Tariff Shock. Such a loss loss requires a 18.4% gain to breakeven.

Preserve Wealth

Limiting losses and compounding gains is essential to preserving wealth.

Asset Allocation

Actively managed asset allocation strategies protect wealth. Learn more.

LEGO has limited trading history. Below is the Financials sector ETF (XLF) in its place.

EventXLFS&P 500
2022 Inflation Shock & Fed Tightening
  % Loss-22.3%-24.5%
  % Gain to Breakeven28.6%32.4%
  Time to Breakeven467 days427 days
2020 COVID-19 Crash
  % Loss-42.8%-33.7%
  % Gain to Breakeven74.8%50.9%
  Time to Breakeven289 days140 days
2015-2016 China Devaluation / Global Growth Scare
  % Loss-21.4%-12.2%
  % Gain to Breakeven27.3%13.9%
  Time to Breakeven272 days62 days
2011 US Debt Ceiling Crisis & European Contagion
  % Loss-26.1%-17.9%
  % Gain to Breakeven35.3%21.8%
  Time to Breakeven162 days123 days
2008-2009 Global Financial Crisis
  % Loss-78.3%-53.4%
  % Gain to Breakeven359.8%114.4%
  Time to Breakeven2329 days1085 days

Compare to AIIA, FVAV, CCXI

In The Past

State Street Financial Select Sector SPDR ETF's stock fell -15.5% during the 2025 US Tariff Shock. Such a loss loss requires a 18.4% gain to breakeven.

Preserve Wealth

Limiting losses and compounding gains is essential to preserving wealth.

Asset Allocation

Actively managed asset allocation strategies protect wealth. Learn more.

About Legato Merger IV (LEGO)

We are a blank check company formed under the laws of the State of Delaware on June 26, 2020. We were formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities, which we refer to as a “target business.” We may pursue a business combination opportunity in any business or industry we choose although we currently intend to focus on target businesses in the renewables, infrastructure, engineering and construction (“E&C”) and industrial industries. To date, our efforts have been limited to organizational activities as well as activities related to this offering. None of our officers, directors, promoters and other affiliates have engaged in any substantive discussions on our behalf with representatives of other companies regarding the possibility of a potential business combination with us. --- Our executive offices are located at 777 Third Avenue, 37th Floor, New York, New York 10017 and our telephone number is (212) 319-7676.

AI Analysis | Feedback

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  • Business Combination Services: Legato Merger IV's sole purpose is to identify and complete a merger, share exchange, or acquisition with a target business, with an intended focus on the renewables, infrastructure, engineering and construction, and industrial industries.

AI Analysis | Feedback

Legato Merger IV (symbol: LEGO) is a Special Purpose Acquisition Company (SPAC), also known as a "blank check company." Its stated purpose is to pursue a business combination with one or more target businesses. As of the provided description, its efforts have been limited to organizational activities and its initial public offering, and it has not yet engaged in substantive discussions regarding a potential business combination.

Therefore, Legato Merger IV does not currently sell products or services to other companies or individuals, and consequently, does not have major customers in the traditional sense.

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Gregory Monahan, Chief Executive Officer and Director

Mr. Monahan is a Senior Managing Director of Crescendo Partners, L.P. and the Portfolio Manager of Jamarant Advisors. He serves as a director of Southland Holdings (NYSE:SLND). Mr. Monahan has also served on an additional nine public company boards and previously co-founded Bind Network Solutions. He holds a Bachelor of Science degree in Mechanical Engineering from Union College and an MBA from Columbia Business School.

Adam Jaffe, Chief Financial Officer and Director

Mr. Jaffe joined Crescendo Partners, L.P. in 2018 and currently serves as Chief Financial Officer. He also holds the positions of Chief Financial Officer and Chief Compliance Officer for Jamarant Capital, L.P., and Chief Financial Officer of Allegro Merger Corp. He previously served as the Chief Financial Officer of Legato Merger Corp. and Legato Merger Corp. II. Mr. Jaffe was on the board of The Green Organic Dutchman Holdings Ltd. / BZAM (CSE:BZAM) and served as Senior Fund Accountant for GTIS Partners from 2016 to 2018. From 2014 to 2016, he worked at EisnerAmper LLP. Mr. Jaffe is a New York State Certified Public Accountant (CPA).

Eric S. Rosenfeld, Chief SPAC Officer and Director

Mr. Rosenfeld has been the President and CEO of Crescendo Partners, L.P., since 1998. He serves as a director of Aecon Group Inc. (TSX:ARE), Algoma Steel (NASDAQ:ASTL), and Pangaea Logistics Solutions (NASDAQ:PANL). Mr. Rosenfeld has served on an additional 24 public company boards and was a managing director at CIBC Oppenheimer and its predecessor company for 15 years. He has led nine previous SPACs, including Legato Merger III (LEGT), Legato Merger II (which merged with Southland Holdings), and Legato Merger (which merged with Algoma Steel). Mr. Rosenfeld holds an MBA from Harvard Business School and an AB from Brown University.

Brian Pratt, Non-Executive Chairman

Mr. Pratt possesses over 35 years of hands-on operations and management experience in the construction industry. From 1983 through 2015, he served as the President, Chief Executive Officer, and Chairman of the Board of Primoris Services Corp. (NASDAQ:PRIM) and its predecessor entity, ARB, Inc. He was Chairman of Primoris Services Corp from 2008 until 2019 and a Director until February 2020. Mr. Pratt previously served as Chairman of Legato Merger Corp I and II, and now holds the position of Chairman of the Board of Southland Holdings (NYSE:SLND).

David D. Sgro, CFA, Non-Executive Vice Chairman

Mr. Sgro serves as the Director of Research of Jamarant Advisors. He is a director of Pangaea Logistics Solutions (NASDAQ:PANL) and Algoma Steel (NASDAQ:ASTL). He has been involved in the management of 8 prior Special Purpose Acquisition Companies and has served on the board of 14 public companies in the U.S. and Canada. Mr. Sgro holds an MBA from Columbia Business School and a BS from TCNJ.

AI Analysis | Feedback

The key risks for Legato Merger IV (symbol: LEGO) primarily stem from its nature as a Special Purpose Acquisition Company (SPAC).

  1. Failure to complete a business combination: As a blank check company, Legato Merger IV's fundamental purpose is to complete a merger, share exchange, asset acquisition, or similar business combination with one or more entities. If it fails to identify and complete a suitable business combination within the designated timeframe, the company would be forced to liquidate and return the funds held in its trust account to its public shareholders, without any return on investment. The company's efforts to date have been limited to organizational activities and its offering, underscoring this ongoing risk.
  2. Inability to identify a suitable target business: Legato Merger IV faces the challenge of identifying an attractive private company that meets its investment criteria and is willing to engage in a business combination. The company intends to focus on specific sectors such as infrastructure, industrial, artificial intelligence, and technology, which may narrow the field of potential targets. Intense competition from other SPACs and private equity firms for desirable acquisition candidates can further complicate this process.
  3. Risk of significant shareholder redemptions: Public shareholders of Legato Merger IV have the option to redeem their shares for a pro rata portion of the cash held in the trust account prior to the completion of a business combination. A high rate of redemptions could substantially reduce the capital available for the prospective merger, potentially making the transaction less appealing, difficult to finalize, or necessitating the pursuit of additional financing under less favorable terms.

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AI Analysis | Feedback

Legato Merger IV (symbol: LEGO) is a blank check company actively seeking a business combination, with its Initial Public Offering completed in January 2026. The company aims to merge with a target business, primarily focusing on the infrastructure, industrial, artificial intelligence, and technology industries. As such, the expected drivers of future revenue growth over the next 2-3 years are intrinsically tied to its success in identifying and integrating an operating business. Here are 3-5 expected drivers of future revenue growth for Legato Merger IV:
  • Successful Completion of a Business Combination: The most fundamental driver for Legato Merger IV's future revenue growth is the successful identification, negotiation, and completion of a business combination with a suitable operating company. Until such a merger occurs, Legato Merger IV, as a Special Purpose Acquisition Company (SPAC), will have minimal operational revenue beyond potential interest income from its trust account.
  • Acquisition of a High-Growth Target in Focus Industries: Legato Merger IV's stated intention to pursue businesses in the infrastructure, industrial, artificial intelligence, and technology sectors positions it to potentially acquire a company within industries known for growth. Securing a target business with strong growth prospects in these areas would be a significant driver of the combined entity's revenue post-merger.
  • Strategic Initiatives and Market Expansion of the Acquired Business: Upon completion of a business combination, the specific revenue growth strategies of the acquired company will become paramount. These could include expanding into new geographical markets, developing and launching new products or services, increasing customer acquisition, or implementing pricing strategies that drive top-line growth.
  • Synergies and Operational Efficiencies Post-Merger: Following the merger, potential synergies between Legato Merger IV's strategic guidance and the acquired company's operations could lead to enhanced revenue opportunities. This might involve improved operational efficiencies, cross-selling capabilities, or leveraging shared resources to accelerate growth.

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Share Issuance

  • Legato Merger IV closed its initial public offering (IPO) on January 26, 2026, issuing 23,000,000 units at $10.00 per unit, which generated gross proceeds of $230,000,000.
  • Concurrently with the IPO, the company completed a private placement of 550,000 units at $10.00 per unit, resulting in total proceeds of $5,500,000 from its initial shareholders and underwriters.

Inbound Investments

  • The company raised $230,000,000 in gross proceeds from its initial public offering on January 26, 2026.
  • An additional $5,500,000 was generated through a private placement of units simultaneously with the IPO.
  • Of the proceeds received from the IPO and the private placement, $230,000,000 was placed in a trust account, which the company intends to use for its initial business combination.

Outbound Investments

  • As a blank check company, Legato Merger IV's primary intention for capital allocation is to enter into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses.
  • As of March 2026, the company is actively seeking a private company target with an equity value greater than $450 million, primarily focusing on the infrastructure, industrial, artificial intelligence, and technology industries.
  • To date, no significant outbound investment in the form of a completed business combination has been made.

Capital Expenditures

  • Legato Merger IV operates as a blank check company with no significant operations or operating revenues prior to completing a business combination.
  • All activity through January 26, 2026, primarily related to the company's formation and its initial public offering, indicating minimal capital expenditures.

Trade Ideas

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Recent Active Movers

Peer Comparisons

Peers to compare with:

Financials

LEGOAIIAFVAVCCXIMedian
NameLegato M.AI Infra.Fortress.Churchil. 
Mkt Price9.9110.12-10.2210.12
Mkt Cap0.20.2-0.60.2
Rev LTM-----
Op Inc LTM-----
FCF LTM-----
FCF 3Y Avg-----
CFO LTM-----
CFO 3Y Avg-----

Growth & Margins

LEGOAIIAFVAVCCXIMedian
NameLegato M.AI Infra.Fortress.Churchil. 
Rev Chg LTM-----
Rev Chg 3Y Avg-----
Rev Chg Q-----
QoQ Delta Rev Chg LTM-----
Op Inc Chg LTM-----
Op Inc Chg 3Y Avg-----
Op Mgn LTM-----
Op Mgn 3Y Avg-----
QoQ Delta Op Mgn LTM-----
CFO/Rev LTM-----
CFO/Rev 3Y Avg-----
FCF/Rev LTM-----
FCF/Rev 3Y Avg-----

Valuation

LEGOAIIAFVAVCCXIMedian
NameLegato M.AI Infra.Fortress.Churchil. 
Mkt Cap0.20.2-0.60.2
P/S-----
P/Op Inc-----
P/EBIT-----
P/E-----
P/CFO-----
Total Yield-----
Dividend Yield0.0%0.0%-0.0%0.0%
FCF Yield 3Y Avg-----
D/E0.00.0-0.00.0
Net D/E-0.0-0.0--0.0-0.0

Returns

LEGOAIIAFVAVCCXIMedian
NameLegato M.AI Infra.Fortress.Churchil. 
1M Rtn0.5%0.2%-0.0%0.2%
3M Rtn-0.4%1.0%-0.6%0.6%
6M Rtn-0.4%2.1%--0.4%-0.4%
12M Rtn-0.4%1.9%--0.4%-0.4%
3Y Rtn-0.4%1.9%--0.4%-0.4%
1M Excs Rtn-5.7%-6.0%--6.2%-6.0%
3M Excs Rtn-10.6%-9.2%--9.6%-9.6%
6M Excs Rtn-12.4%-10.0%--12.4%-12.4%
12M Excs Rtn-29.1%-26.8%--29.1%-29.1%
3Y Excs Rtn-83.2%-80.9%--83.2%-83.2%

Comparison Analyses

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Financials

Short Interest

Short Interest: As Of Date5152026
Short Interest: Shares Quantity0.0 Mil
Short Interest: % Change Since 4302026-25.8%
Average Daily Volume0.0 Mil
Days-to-Cover Short Interest1
Basic Shares Quantity16.3 Mil
Short % of Basic Shares0.0%

Earnings Returns History

Updated 5/29/2026
Expand for More
 Forward Returns
Earnings Date1D Returns5D Returns21D Returns
SUMMARY STATS   
# Positive000
# Negative000
Median Positive   
Median Negative   
Max Positive   
Max Negative   

SEC Filings

Expand for More
Report DateFiling DateFiling
02/28/202604/14/202610-Q
Core Cache Last Updated: 5/29/2026