Louisiana-Pacific Corporation (LPX) looking to reclaim success with recent performance

Louisiana-Pacific Corporation (NYSE: LPX) stock jumped 0.51% on Friday to $52.71 against a previous-day closing price of $52.44. With 1.71 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.28 million shares. During the session, the Building Products & Equipment company that operates in wider Industrials sector, reached to the highest price of $55.03 whereas the lowest price it dropped to was $52.59. The 52-week range on LPX shows that it touched its highest point at $79.77 and its lowest point at $49.98 during that stretch. It currently has a 1-year price target of $70.22. With its current market cap of 3.94 billion, LPX has annualized dividend of $0.88 while the current yield stands at 1.67%. Beta for the stock currently stands at 1.68.

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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 LPX was down-trending over the past week, with a drop of -0.83%, but this was down by -7.79% over a month. Three-month performance dropped to -1.42% while six-month performance fell -22.88%. The stock lost -10.40% in the past year, while it has lost -32.72% so far this year. A look at the trailing 12-month EPS for LPX yields 15.46 with Next year EPS estimates of 6.11. For the next quarter, that number is 1.71. This implies an EPS growth rate of 215.40% for this year and -52.33% for next year. EPS is expected to grow by 5.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 68.50%.

Float and Shares Shorts:

At present, 81.00 million LPX shares are outstanding with a float of 72.55 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.12 million, which was 6.27% higher than short shares on Jun 14, 2022. In addition to Mr. William Bradley Southern as the firm’s Chairman & CEO, Mr. Alan J. M. Haughie serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 101.17% of LPX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 62.91% of LPX, in contrast to 41.91% held by mutual funds. Shares owned by individuals account for 4.51%. As the largest shareholder in LPX with 12.06% of the stake, The Vanguard Group, Inc. holds 8,910,834 shares worth 8,910,834. A second-largest stockholder of LPX, BlackRock Fund Advisors, holds 6,793,886 shares, controlling over 9.20% of the firm’s shares. First Trust Advisors LP is the third largest shareholder in LPX, holding 3,511,449 shares or 4.75% stake. With a 3.88% stake in LPX, the First Trust Rising Dividend Achie is the largest stakeholder. A total of 2,866,574 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.28% of LPX stock, is the second-largest Mutual Fund holder. It holds 2,423,581 shares valued at 131.43 million. iShares Core S&P Mid Cap ETF holds 3.27% of the stake in LPX, owning 2,417,134 shares worth 131.08 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LPX since 10 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With LPX analysts setting a high price target of $82.00 and a low target of $53.00, the average target price over the next 12 months is $68.78. Based on these targets, LPX could surge 55.57% to reach the target high and rise by 0.55% to reach the target low. Reaching the average price target will result in a growth of 30.49% 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. LPX will report FY 2022 earnings on 02/21/2023. Analysts have provided yearly estimates in a range of $13.64 being high and $11.72 being low. For LPX, this leads to a yearly average estimate of $12.65. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Louisiana-Pacific Corporation surprised analysts by -$0.15 when it reported $4.19 EPS against a consensus estimate of $4.34. The surprise factor in the prior quarter was $0.46. Based on analyst estimates, the high estimate for the next quarter is $1.88 and the low estimate is $1.24. The average estimate for the next quarter is thus $1.61.

Summary of Insider Activity:

Insiders traded LPX stock several times over the past three months with 1 Buys and 0 Sells. In these transactions, 150 shares were bought while 0 shares were sold. The number of buy transactions has increased to 29 while that of sell transactions has risen to 36 over the past year. The total number of shares bought during that period was 245,237 while 159,402 shares were sold.

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