Liberty Energy Inc. (NYSE: LBRT) stock fell -2.83% on Friday to $13.71 against a previous-day closing price of $14.11. With 4.75 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.28 million shares. During the session, the Oil & Gas Equipment & Services company that operates in wider Energy sector, reached to the highest price of $14.48 whereas the lowest price it dropped to was $12.87. The 52-week range on LBRT shows that it touched its highest point at $20.05 and its lowest point at $8.50 during that stretch. It currently has a 1-year price target of $20.65. Beta for the stock currently stands at 2.34.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LBRT was down-trending over the past week, with a drop of -5.12%, but this was up by 21.11% over a month. Three-month performance dropped to -17.76% while six-month performance rose 7.70%. The stock gained 33.89% in the past year, while it has gained 41.34% so far this year. A look at the trailing 12-month EPS for LBRT yields -0.00 with Next year EPS estimates of 2.20. For the next quarter, that number is 0.41. This implies an EPS growth rate of 24.00% for this year and 87.30% for next year. EPS is expected to grow by 15.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -14.60%.
Float and Shares Shorts:
At present, 186.72 million LBRT shares are outstanding with a float of 157.72 million shares on hand for trading. On Jul 14, 2022, short shares totaled 6.76 million, which was 3.62% higher than short shares on Jun 14, 2022. In addition to Mr. Christopher A. Wright as the firm’s Founder, Chairman & CEO, Mr. Ron Gusek serves as its Pres.
Through their ownership of 76.83% of LBRT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 49.59% of LBRT, in contrast to 48.71% held by mutual funds. Shares owned by individuals account for 14.91%. As the largest shareholder in LBRT with 14.36% of the stake, Fidelity Management & Research Co holds 26,823,852 shares worth 26,823,852. A second-largest stockholder of LBRT, T. Rowe Price Associates, Inc., holds 12,819,168 shares, controlling over 6.86% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in LBRT, holding 10,757,287 shares or 5.76% stake. With a 3.65% stake in LBRT, the Fidelity Global Innovators Invest is the largest stakeholder. A total of 6,811,224 shares are owned by the mutual fund manager. The VanEck Oil Services ETF, which owns about 3.45% of LBRT stock, is the second-largest Mutual Fund holder. It holds 6,442,422 shares valued at 82.21 million. Fidelity Global Innovators Class holds 2.66% of the stake in LBRT, owning 4,959,913 shares worth 63.29 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, LBRT reported revenue of $942.62M and operating income of $109.36M. Over the past year, revenue came in at $3.07B while operating income stood at $11.44M. It generated $105.16M net income for the quarter, which came to $5.30M over the last twelve months. The EBITDA in the recently reported quarter was $186.57M and diluted EPS was $0.55. EBITDA for the full year was $323.36M.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LBRT since 15 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With LBRT analysts setting a high price target of $25.00 and a low target of $14.00, the average target price over the next 12 months is $21.04. Based on these targets, LBRT could surge 82.35% to reach the target high and rise by 2.12% to reach the target low. Reaching the average price target will result in a growth of 53.46% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. LBRT will report FY 2022 earnings on 02/07/2023. Analysts have provided yearly estimates in a range of $2.08 being high and $0.58 being low. For LBRT, this leads to a yearly average estimate of $1.52. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Liberty Energy Inc. surprised analysts by $0.41 when it reported $0.58 EPS against a consensus estimate of $0.17. The surprise factor in the prior quarter was $0.13. Based on analyst estimates, the high estimate for the next quarter is $0.72 and the low estimate is $0.25. The average estimate for the next quarter is thus $0.55.
Summary of Insider Activity:
Insiders traded LBRT stock several times over the past three months with 0 Buys and 5 Sells. In these transactions, 0 shares were bought while 12,086,400 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 47 over the past year. The total number of shares bought during that period was 1,002,611 while 44,729,245 shares were sold.