Fernbridge Capital Management LP Purchases 607,319 Shares of Louisiana-Pacific Corporation $LPX

Key Points

• Fernbridge Capital Management LP boosted its stake in Louisiana‑Pacific by 284.5%, buying 607,319 shares to hold 820,755 shares (about 1.18% of LPX), a position worth roughly $72.9 million and representing ~3.6% of Fernbridge's portfolio (its 5th largest holding).
• Other institutions including Eminence, 59 North, Invesco and Boston Partners also materially increased positions, and hedge funds/institutions now own approximately 94.73% of the company's stock, signaling heavy institutional interest.
• Louisiana‑Pacific beat quarterly EPS estimates ($0.03 vs. -$0.06) despite revenue falling 16.7% y/y, raised its quarterly dividend to $0.30 (annualized $1.20, ~1.6% yield), and carries a consensus analyst rating of "Moderate Buy" with a $105.83 target.

Fernbridge Capital Management LP grew its position in Louisiana-Pacific Corporation (NYSE:LPX - Free Report) by 284.5% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 820,755 shares of the building manufacturing company's stock after buying an additional 607,319 shares during the period. Louisiana-Pacific accounts for approximately 3.6% of Fernbridge Capital Management LP's investment portfolio, making the stock its 5th largest position. Fernbridge Capital Management LP owned 1.18% of Louisiana-Pacific worth $72,916,000 at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. Eminence Capital LP lifted its holdings in Louisiana-Pacific by 72.3% in the second quarter. Eminence Capital LP now owns 2,887,438 shares of the building manufacturing company's stock valued at $248,291,000 after acquiring an additional 1,211,495 shares during the last quarter. 59 North Capital Management LP raised its position in Louisiana-Pacific by 7.2% in the second quarter. 59 North Capital Management LP now owns 2,808,369 shares of the building manufacturing company's stock valued at $241,492,000 after purchasing an additional 189,726 shares during the period. Dimensional Fund Advisors LP lifted its stake in shares of Louisiana-Pacific by 1.9% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,549,853 shares of the building manufacturing company's stock valued at $137,666,000 after purchasing an additional 28,535 shares during the last quarter. Boston Partners acquired a new position in shares of Louisiana-Pacific in the 3rd quarter valued at $100,770,000. Finally, Invesco Ltd. grew its holdings in shares of Louisiana-Pacific by 94.8% during the 2nd quarter. Invesco Ltd. now owns 1,028,250 shares of the building manufacturing company's stock worth $88,419,000 after purchasing an additional 500,449 shares during the period. Hedge funds and other institutional investors own 94.73% of the company's stock.

Louisiana-Pacific Stock Performance

Shares of Louisiana-Pacific stock opened at $75.78 on Friday. The stock has a market capitalization of $5.29 billion, a price-to-earnings ratio of 36.26 and a beta of 1.78. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.78 and a quick ratio of 1.53. The business has a 50-day moving average of $87.33 and a 200 day moving average of $86.84. Louisiana-Pacific Corporation has a 12 month low of $73.42 and a 12 month high of $102.86.

Louisiana-Pacific (NYSE:LPX - Get Free Report) last issued its quarterly earnings results on Tuesday, February 17th. The building manufacturing company reported $0.03 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.06) by $0.09. Louisiana-Pacific had a net margin of 5.39% and a return on equity of 10.72%. The business had revenue of $567.00 million for the quarter, compared to analysts' expectations of $589.96 million. During the same quarter in the prior year, the company earned $1.03 earnings per share. The business's quarterly revenue was down 16.7% on a year-over-year basis. As a group, sell-side analysts forecast that Louisiana-Pacific Corporation will post 5.27 earnings per share for the current year.

Louisiana-Pacific Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, March 13th. Shareholders of record on Friday, February 27th were given a $0.30 dividend. The ex-dividend date of this dividend was Friday, February 27th. This represents a $1.20 annualized dividend and a yield of 1.6%. This is a boost from Louisiana-Pacific's previous quarterly dividend of $0.28. Louisiana-Pacific's dividend payout ratio is 53.59%.

Analyst Ratings Changes

A number of brokerages recently issued reports on LPX. Weiss Ratings reissued a "hold (c-)" rating on shares of Louisiana-Pacific in a research report on Monday, December 29th. Barclays increased their target price on shares of Louisiana-Pacific from $100.00 to $108.00 and gave the stock an "overweight" rating in a research note on Thursday, January 15th. DA Davidson dropped their price target on shares of Louisiana-Pacific from $117.00 to $114.00 and set a "buy" rating for the company in a research report on Monday, February 23rd. Oppenheimer reissued an "outperform" rating on shares of Louisiana-Pacific in a research note on Tuesday, March 3rd. Finally, Zacks Research cut shares of Louisiana-Pacific from a "hold" rating to a "strong sell" rating in a research report on Thursday, March 5th. Seven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $105.83.

Insiders Place Their Bets

In related news, Director F Nicholas Grasberger III bought 20,000 shares of the firm's stock in a transaction that occurred on Thursday, February 19th. The stock was purchased at an average cost of $85.49 per share, for a total transaction of $1,709,800.00. Following the completion of the acquisition, the director owned 38,954 shares in the company, valued at approximately $3,330,177.46. This trade represents a 105.52% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Lizanne M. Bruce sold 1,300 shares of the business's stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $78.59, for a total value of $102,167.00. Following the transaction, the director directly owned 17,160 shares of the company's stock, valued at $1,348,604.40. The trade was a 7.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 157,142 shares of company stock worth $14,015,145 over the last 90 days. Corporate insiders own 1.42% of the company's stock.

About Louisiana-Pacific

Louisiana-Pacific Corporation NYSE: LPX is a leading manufacturer of building materials and engineered wood products for residential, industrial and light commercial construction. The company produces a diverse portfolio of products, including oriented strand board (OSB), engineered wood siding, trim, molding, sheathing panels and subflooring. Its flagship product lines, such as LP® SmartSide® trim and siding, are designed to offer enhanced durability, moisture resistance and ease of installation, helping builders and homeowners achieve long-lasting performance in a variety of climates.

Founded in 1973 as a spin-off from Georgia-Pacific, Louisiana-Pacific established its reputation by pioneering innovative manufacturing techniques for OSB, becoming one of the first companies to bring the product to market in the 1980s.

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