Are Smart Investors Making the Right Decision? Louisiana-Pacific Corporation (LPX)

Louisiana-Pacific Corporation (NYSE: LPX) stock fell -3.34% on Tuesday to $59.26 against a previous-day closing price of $61.31. With 0.88 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.9 million shares. During the session, the Building Products & Equipment company that operates in wider Industrials sector, reached to the highest price of $61.51 whereas the lowest price it dropped to was $59.21. The 52-week range on LPX shows that it touched its highest point at $74.41 and its lowest point at $48.20 during that stretch. It currently has a 1-year price target of $66.67. With its current market cap of 4.39 billion, LPX has annualized dividend of $0.96 while the current yield stands at 1.62%. Beta for the stock currently stands at 1.63.

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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 -5.73%, but this was down by -2.64% over a month. Three-month performance surged to 2.42% while six-month performance fell -3.89%. The stock lost -7.26% in the past year, while it has gained 0.10% so far this year. A look at the trailing 12-month EPS for LPX yields 6.18 with Next year EPS estimates of 4.14. For the next quarter, that number is 0.63. This implies an EPS growth rate of -14.60% for this year and 61.99% 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 34.90%.

Float and Shares Shorts:

At present, 72.00 million LPX shares are outstanding with a float of 70.38 million shares on hand for trading. On Apr 27, 2023, short shares totaled 2.54 million, which was 3.53% higher than short shares on Mar 30, 2023. 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 97.74% of LPX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 54.49% of LPX, in contrast to 5.05% held by mutual funds. Shares owned by individuals account for 37.11%. As the largest shareholder in LPX with 9.82% of the stake, Berkshire Hathaway, Inc. holds 7,044,909 shares worth 7,044,909. A second-largest stockholder of LPX, The Vanguard Group, Inc., holds 6,762,754 shares, controlling over 9.42% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in LPX, holding 6,232,902 shares or 8.68% stake. With a 3.74% stake in LPX, the First Trust Rising Dividend Achie is the largest stakeholder. A total of 2,685,171 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 3.12% of LPX stock, is the second-largest Mutual Fund holder. It holds 2,237,259 shares valued at 133.65 million. Vanguard Total Stock Market ETF holds 2.79% of the stake in LPX, owning 2,003,797 shares worth 119.71 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 Mar 30, 2023, LPX reported revenue of $1.13B and operating income of $449.00M. The EBITDA in the recently reported quarter was $481.00M and diluted EPS was $4.73.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LPX since 0 analysts follow the stock currently. 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 $49.00, the average target price over the next 12 months is $66.67. Based on these targets, LPX could surge 38.37% to reach the target high and fall by -17.31% to reach the target low. Reaching the average price target will result in a growth of 12.5% 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.

Summary of Insider Activity:

Insiders traded LPX stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 26 over the past year. The total number of shares bought during that period was 261,010 while 118,401 shares were sold.

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