TD Cowen Cuts Live Oak Bancshares (NYSE:LOB) Price Target to $44.00

Key Points

• TD Cowen lowered Live Oak Bancshares’ price target to $44 from $49 while maintaining a “buy” rating, implying roughly 20% upside from the stock’s $36.61 price.
• Analyst sentiment is mixed: MarketBeat’s consensus rating is “hold,” with an average target price of $44.25, despite Live Oak exceeding quarterly EPS estimates ($0.74 versus $0.64).
• Insiders sold 29,654 shares worth approximately $1.24 million over the past quarter, while institutional investors own 63.95% of the company.

Live Oak Bancshares (NYSE:LOB - Get Free Report) had its price target cut by equities researchers at TD Cowen from $49.00 to $44.00 in a research report issued on Monday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. TD Cowen's price objective indicates a potential upside of 20.19% from the stock's current price.

A number of other analysts also recently issued reports on the company. Keefe, Bruyette & Woods lifted their target price on Live Oak Bancshares from $45.00 to $47.00 and gave the company an "outperform" rating in a research report on Friday, July 24th. Cantor Fitzgerald increased their price target on Live Oak Bancshares from $44.00 to $45.00 and gave the company a "neutral" rating in a research report on Wednesday, August 19th. Weiss Ratings downgraded Live Oak Bancshares from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday. Finally, Zacks Research lowered Live Oak Bancshares from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 31st. Two investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, Live Oak Bancshares presently has a consensus rating of "Hold" and a consensus target price of $44.25.

Live Oak Bancshares Stock Down 0.2%

LOB traded down $0.07 during trading hours on Monday, hitting $36.61. 24,182 shares of the company's stock were exchanged, compared to its average volume of 268,053. The stock has a market cap of $1.69 billion, a price-to-earnings ratio of 12.88 and a beta of 1.94. Live Oak Bancshares has a 1-year low of $29.36 and a 1-year high of $44.53. The stock's 50-day moving average is $40.18 and its two-hundred day moving average is $38.50.

Live Oak Bancshares (NYSE:LOB - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The company reported $0.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.64 by $0.10. Live Oak Bancshares had a net margin of 12.68% and a return on equity of 11.77%. The firm had revenue of $156.15 million for the quarter. On average, equities research analysts anticipate that Live Oak Bancshares will post 3.07 EPS for the current year.

Insider Activity

In related news, Director Tonya Bradford sold 1,600 shares of Live Oak Bancshares stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $39.89, for a total transaction of $63,824.00. Following the completion of the transaction, the director owned 8,043 shares in the company, valued at approximately $320,835.27. This trade represents a 16.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Mark Moroz sold 6,100 shares of Live Oak Bancshares stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $42.08, for a total value of $256,688.00. Following the transaction, the insider owned 12,110 shares of the company's stock, valued at $509,588.80. This represents a 33.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 29,654 shares of company stock valued at $1,240,814. Company insiders own 22.40% of the company's stock.

Hedge Funds Weigh In On Live Oak Bancshares

Several large investors have recently modified their holdings of LOB. Benjamin Edwards Inc. lifted its holdings in Live Oak Bancshares by 3.1% during the 2nd quarter. Benjamin Edwards Inc. now owns 16,857 shares of the company's stock worth $688,000 after purchasing an additional 499 shares during the last quarter. Global Retirement Partners LLC acquired a new stake in shares of Live Oak Bancshares during the second quarter worth $36,000. Versant Capital Management Inc boosted its position in shares of Live Oak Bancshares by 98.9% in the third quarter. Versant Capital Management Inc now owns 2,080 shares of the company's stock valued at $75,000 after acquiring an additional 1,034 shares during the period. Sanctuary Advisors LLC grew its stake in shares of Live Oak Bancshares by 19.2% in the first quarter. Sanctuary Advisors LLC now owns 10,728 shares of the company's stock valued at $355,000 after acquiring an additional 1,730 shares in the last quarter. Finally, Sei Investments Co. grew its stake in shares of Live Oak Bancshares by 4.5% in the first quarter. Sei Investments Co. now owns 41,124 shares of the company's stock valued at $1,360,000 after acquiring an additional 1,770 shares in the last quarter. 63.95% of the stock is owned by institutional investors.

About Live Oak Bancshares

Live Oak Bancshares, Inc is a financial holding company headquartered in Wilmington, North Carolina. Through its principal subsidiary, Live Oak Bank, the company provides banking and financial services to small and middle-market businesses, professionals, entrepreneurs and individuals.

Live Oak Bank is known for its specialized lending model, including Small Business Administration (SBA) loans and financing for businesses in industries such as veterinary medicine, healthcare, agriculture, investment advisory and government contracting.

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