A significant driver of top-line growth: Liberty Energy Inc. (LBRT)

Liberty Energy Inc. (NYSE: LBRT) stock fell -0.31% on Wednesday to $13.06 against a previous-day closing price of $13.10. With 1.22 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.74 million shares. During the session, the Oil & Gas Equipment & Services company that operates in wider Energy sector, reached to the highest price of $13.24 whereas the lowest price it dropped to was $12.91. The 52-week range on LBRT shows that it touched its highest point at $19.08 and its lowest point at $10.71 during that stretch. It currently has a 1-year price target of $20.00. With its current market cap of 2.26 billion, LBRT has annualized dividend of $0.20 while the current yield stands at 1.53%. Beta for the stock currently stands at 2.10.

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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 up-trending over the past week, with a rise of 4.56%, but this was up by 0.15% over a month. Three-month performance dropped to -13.80% while six-month performance fell -20.70%. The stock lost -18.53% in the past year, while it has lost -18.43% so far this year. A look at the trailing 12-month EPS for LBRT yields 3.05 with Next year EPS estimates of 3.21. For the next quarter, that number is 0.97. This implies an EPS growth rate of 305.30% for this year and -9.59% for next year. EPS is expected to grow by 24.70% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 8.20%.

Float and Shares Shorts:

At present, 176.57 million LBRT shares are outstanding with a float of 167.39 million shares on hand for trading. On May 14, 2023, short shares totaled 6.94 million, which was 3.96% higher than short shares on Apr 13, 2023. 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 94.52% of LBRT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 54.13% of LBRT, in contrast to 51.64% held by mutual funds. Shares owned by individuals account for 35.26%. As the largest shareholder in LBRT with 10.61% of the stake, The Vanguard Group, Inc. holds 18,691,832 shares worth 18,691,832. A second-largest stockholder of LBRT, Fidelity Management & Research Co, holds 15,711,813 shares, controlling over 8.92% of the firm’s shares. T. Rowe Price Investment Manageme is the third largest shareholder in LBRT, holding 10,041,497 shares or 5.70% stake. With a 2.79% stake in LBRT, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 4,906,301 shares are owned by the mutual fund manager. The Fidelity Low Priced Stock Fund, which owns about 2.74% of LBRT stock, is the second-largest Mutual Fund holder. It holds 4,827,151 shares valued at 61.84 million. Vanguard Small Cap Index Fund holds 2.36% of the stake in LBRT, owning 4,147,047 shares worth 53.12 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, LBRT reported revenue of $942.62M and operating income of $109.36M. The EBITDA in the recently reported quarter was $109.19M and diluted EPS was $0.55.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LBRT 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 LBRT analysts setting a high price target of $28.00 and a low target of $14.50, the average target price over the next 12 months is $19.86. Based on these targets, LBRT could surge 114.4% to reach the target high and rise by 11.03% to reach the target low. Reaching the average price target will result in a growth of 52.07% 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 LBRT stock several times over the past three months with 5 Buys and 5 Sells. In these transactions, 490,814 shares were bought while 367,837 shares were sold. The number of buy transactions has increased to 16 while that of sell transactions has risen to 35 over the past year. The total number of shares bought during that period was 798,079 while 25,208,294 shares were sold.

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