Are Smart Investors Making the Right Decision? Liberty Energy Inc. (LBRT)

Liberty Energy Inc. (NYSE: LBRT) stock fell -1.62% on Tuesday to $14.56 against a previous-day closing price of $14.80. With 4.09 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.23 million shares. During the session, the Oil & Gas Equipment & Services company that operates in wider Energy sector, reached to the highest price of $15.02 whereas the lowest price it dropped to was $14.23. The 52-week range on LBRT shows that it touched its highest point at $20.05 and its lowest point at $10.45 during that stretch. It currently has a 1-year price target of $21.96. With its current market cap of 2.65 billion, LBRT has annualized dividend of $0.20 while the current yield stands at 1.37%. Beta for the stock currently stands at 2.21.

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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 LBRT was down-trending over the past week, with a drop of -8.71%, but this was down by -8.37% over a month. Three-month performance dropped to -7.96% while six-month performance rose 13.31%. The stock gained 28.06% in the past year, while it has lost -9.06% so far this year. A look at the trailing 12-month EPS for LBRT yields 0.99 with Next year EPS estimates of 3.36. For the next quarter, that number is 0.75. This implies an EPS growth rate of 24.00% for this year and 50.94% 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, 185.51 million LBRT shares are outstanding with a float of 167.39 million shares on hand for trading. On Oct 13, 2022, short shares totaled 7.04 million, which was 3.87% higher than short shares on Sep 14, 2022. In addition to Mr. Christopher A. Wright as the firm’s Founder, Chairman & CEO, Mr. Ron Gusek serves as its Pres.

Institutional Ownership:

Through their ownership of 94.02% of LBRT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 55.88% of LBRT, in contrast to 49.78% held by mutual funds. Shares owned by individuals account for 26.54%. As the largest shareholder in LBRT with 12.98% of the stake, Fidelity Management & Research Co holds 23,640,319 shares worth 23,640,319. A second-largest stockholder of LBRT, The Vanguard Group, Inc., holds 16,584,763 shares, controlling over 9.11% of the firm’s shares. T. Rowe Price Investment Manageme is the third largest shareholder in LBRT, holding 10,676,450 shares or 5.86% stake. With a 2.76% stake in LBRT, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 5,019,266 shares are owned by the mutual fund manager. The Fidelity Global Innovators Invest, which owns about 2.68% of LBRT stock, is the second-largest Mutual Fund holder. It holds 4,880,124 shares valued at 78.13 million. Fidelity Low Priced Stock Fund holds 2.64% of the stake in LBRT, owning 4,800,069 shares worth 76.85 million.

Analysts Ratings:

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 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 1 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 $27.00 and a low target of $16.00, the average target price over the next 12 months is $21.96. Based on these targets, LBRT could surge 85.44% to reach the target high and rise by 9.89% to reach the target low. Reaching the average price target will result in a growth of 50.82% 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 02/06/2024. Analysts have provided yearly estimates in a range of $2.47 being high and $1.76 being low. For LBRT, this leads to a yearly average estimate of $2.14. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Liberty Energy Inc. surprised analysts by $0.18 when it reported $0.82 EPS against a consensus estimate of $0.64. The surprise factor in the prior quarter was $0.41. Based on analyst estimates, the high estimate for the next quarter is $0.92 and the low estimate is $0.62. The average estimate for the next quarter is thus $0.75.

Summary of Insider Activity:

Insiders traded LBRT stock several times over the past three months with 7 Buys and 9 Sells. In these transactions, 71,813 shares were bought while 188,900 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 46 over the past year. The total number of shares bought during that period was 470,907 while 47,045,951 shares were sold.

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