Liquidity Services (NASDAQ:LQDT) Rating Lowered to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Liquidity Services from “strong buy” to “hold,” although the broader analyst consensus remains “Moderate Buy” with a $50.00 target price.
• Liquidity Services reported quarterly EPS of $0.45, exceeding the $0.34 consensus estimate, while revenue reached $129.58 million. The stock opened at $43.96 and has traded between $21.67 and $45.00 over the past year.
• Institutional investors own 71.15% of the company, while insiders own 28.06%; insiders have sold $87,959 worth of shares over the past 90 days.

Liquidity Services (NASDAQ:LQDT - Get Free Report) was downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Monday, Zacks reports.

A number of other analysts have also weighed in on LQDT. Barrington Research set a $50.00 target price on Liquidity Services in a research note on Friday, August 7th. Weiss Ratings raised shares of Liquidity Services from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday, August 11th. Finally, Wall Street Zen raised shares of Liquidity Services from a "buy" rating to a "strong-buy" rating in a research note on Sunday, August 16th. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $50.00.

Liquidity Services Stock Performance

LQDT opened at $43.96 on Monday. The stock has a market cap of $1.38 billion, a price-to-earnings ratio of 43.10 and a beta of 1.04. The stock's 50 day moving average price is $42.38 and its 200-day moving average price is $38.26. Liquidity Services has a one year low of $21.67 and a one year high of $45.00.

Liquidity Services (NASDAQ:LQDT - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The business services provider reported $0.45 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.11. Liquidity Services had a return on equity of 17.60% and a net margin of 6.79%. The firm had revenue of $129.58 million for the quarter, compared to the consensus estimate of $57.83 million. Liquidity Services has set its Q4 2026 guidance at 0.410-0.500 EPS. As a group, analysts predict that Liquidity Services will post 1.16 earnings per share for the current fiscal year.

Insider Buying and Selling at Liquidity Services

In related news, EVP John Daunt sold 715 shares of the business's stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $42.75, for a total value of $30,566.25. Following the completion of the sale, the executive vice president owned 38,086 shares in the company, valued at approximately $1,628,176.50. The trade was a 1.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders have sold a total of 2,145 shares of company stock worth $87,959 over the last ninety days. Insiders own 28.06% of the company's stock.

Institutional Investors Weigh In On Liquidity Services

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Man Group plc purchased a new stake in Liquidity Services in the second quarter worth about $2,426,000. Bank of New York Mellon Corp bought a new position in Liquidity Services during the 2nd quarter worth about $5,457,000. Legal & General Group Plc purchased a new position in Liquidity Services during the 2nd quarter valued at about $2,141,000. Connor Clark & Lunn Investment Management Ltd. purchased a new position in Liquidity Services during the 2nd quarter valued at about $5,127,000. Finally, Globeflex Capital L P purchased a new position in Liquidity Services during the 2nd quarter valued at about $1,056,000. 71.15% of the stock is owned by institutional investors.

About Liquidity Services

Liquidity Services, Inc NASDAQ: LQDT operates online marketplaces and related services for managing and selling surplus, returned, and otherwise underutilized assets. The company helps businesses, government agencies, and other organizations recover value from excess inventory and equipment while supporting the reuse and redistribution of goods.

Its marketplace portfolio includes GovDeals, which serves public-sector sellers; Liquidation.com and AllSurplus, which facilitate the sale of surplus and returned merchandise; and Machinio, a search marketplace for used equipment.

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