Liberty Energy (NYSE:LBRT) Shares Down 12.8% - Here's Why

Key Points

• Liberty Energy shares fell sharply, dropping 12.8% intraday after trading as low as $23.09, even as volume was below average. The stock was last seen at $21.916, down from the prior close of $25.14.
• Second-quarter results were better than expected, with EPS of $0.09 and revenue of about $1.19 billion, both above estimates. Revenue also rose 14% year over year, showing continued business growth.
• Investor sentiment was pressured by a downgrade, as Zacks Research cut Liberty Energy from strong-buy to hold despite the earnings beat. The company also announced a new joint venture with PowerBridge aimed at powered data center campus development, which could be a future growth driver.

Liberty Energy Inc. (NYSE:LBRT - Get Free Report)'s share price dropped 12.8% during mid-day trading on Thursday . The stock traded as low as $23.09 and last traded at $21.9160. 2,608,390 shares changed hands during trading, a decline of 37% from the average session volume of 4,127,262 shares. The stock had previously closed at $25.14.

Liberty Energy News Roundup

Here are the key news stories impacting Liberty Energy this week:

• Positive Sentiment: Liberty Energy reported second-quarter results that beat expectations, with EPS of $0.09 versus the Zacks consensus of $0.07-$0.08 and revenue of about $1.19 billion, topping estimates of $1.09 billion. Revenue also rose 14% year over year, suggesting the core business is still growing. Liberty Energy Announces Second Quarter 2026 Financial and Operational Results
• Positive Sentiment: The company also announced a strategic joint venture with PowerBridge to support powered data center campus development, which could open a new growth avenue tied to demand for energy infrastructure and power solutions. Liberty Energy and PowerBridge Form Strategic Joint Venture to Support Powered Data Center Campus Development
• Neutral Sentiment: The stock saw unusually high options trading, indicating elevated investor attention and expectations for a larger move after the earnings and JV announcements. Liberty Energy Target of Unusually High Options Trading NYSE: LBRT
• Negative Sentiment: Zacks Research downgraded Liberty Energy from strong-buy to hold, which may have added caution and tempered enthusiasm despite the earnings beat. Liberty Energy was downgraded by Zacks Research from strong-buy to hold

Analyst Upgrades and Downgrades

LBRT has been the subject of several recent analyst reports. The Goldman Sachs Group reiterated a "neutral" rating and set a $31.00 price objective on shares of Liberty Energy in a research report on Wednesday, June 3rd. Morgan Stanley set a $35.00 price target on Liberty Energy in a report on Wednesday, July 15th. Royal Bank Of Canada reissued a "sector perform" rating and issued a $32.00 price objective on shares of Liberty Energy in a research report on Friday, April 24th. Piper Sandler boosted their price objective on Liberty Energy from $32.00 to $38.00 and gave the company an "overweight" rating in a research note on Monday, April 27th. Finally, Zacks Research lowered Liberty Energy from a "strong-buy" rating to a "hold" rating in a research report on Tuesday. Seven investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $32.09.

Liberty Energy Stock Down 16.8%

The company has a market cap of $3.41 billion, a price-to-earnings ratio of 23.00, a P/E/G ratio of 2.03 and a beta of 0.54. The stock's 50-day moving average is $27.78 and its 200-day moving average is $27.21. The company has a current ratio of 2.21, a quick ratio of 1.97 and a debt-to-equity ratio of 0.75.

Liberty Energy (NYSE:LBRT - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The company reported $0.09 EPS for the quarter, topping analysts' consensus estimates of $0.08 by $0.01. Liberty Energy had a net margin of 3.71% and a return on equity of 1.41%. The business had revenue of $1.19 billion during the quarter, compared to analysts' expectations of $1.09 billion. During the same period last year, the company posted $0.12 earnings per share. The business's quarterly revenue was up 14.0% on a year-over-year basis. On average, analysts anticipate that Liberty Energy Inc. will post 0.28 earnings per share for the current fiscal year.

Liberty Energy Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Friday, September 4th will be paid a $0.09 dividend. The ex-dividend date is Friday, September 4th. This represents a $0.36 annualized dividend and a dividend yield of 1.7%. Liberty Energy's dividend payout ratio (DPR) is currently 39.56%.

Insider Transactions at Liberty Energy

In other Liberty Energy news, Chairman William F. Kimble sold 7,350 shares of the firm's stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $33.92, for a total value of $249,312.00. Following the completion of the sale, the chairman owned 89,805 shares of the company's stock, valued at approximately $3,046,185.60. This trade represents a 7.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Michael Stock sold 9,999 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $25.89, for a total value of $258,874.11. Following the sale, the chief financial officer owned 773,711 shares of the company's stock, valued at approximately $20,031,377.79. This represents a 1.28% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 54,012 shares of company stock valued at $1,673,803 over the last ninety days. 2.00% of the stock is currently owned by corporate insiders.

Institutional Trading of Liberty Energy

Several hedge funds have recently bought and sold shares of the business. California State Teachers Retirement System grew its position in Liberty Energy by 5.7% in the 1st quarter. California State Teachers Retirement System now owns 187,592 shares of the company's stock valued at $5,403,000 after purchasing an additional 10,194 shares during the period. Quantinno Capital Management LP grew its holdings in shares of Liberty Energy by 43.6% during the first quarter. Quantinno Capital Management LP now owns 16,327 shares of the company's stock valued at $470,000 after buying an additional 4,955 shares during the last quarter. Lazard Asset Management LLC increased its position in shares of Liberty Energy by 6.3% during the first quarter. Lazard Asset Management LLC now owns 16,462 shares of the company's stock worth $474,000 after acquiring an additional 969 shares in the last quarter. Castleark Management LLC acquired a new stake in shares of Liberty Energy in the 1st quarter worth about $7,626,000. Finally, Compound Planning Inc. acquired a new stake in shares of Liberty Energy in the 1st quarter worth about $547,000. Institutional investors and hedge funds own 98.22% of the company's stock.

Liberty Energy Company Profile

Liberty Energy Inc provides hydraulic services and related technologies to onshore oil and natural gas exploration, and production companies in North America. The company offers hydraulic fracturing services, including complementary services, such as wireline services, proppant delivery solutions, field gas processing and treating, compressed natural gas (CNG) delivery, data analytics, related goods comprising sand mine operations, and technologies; and well site fueling and logistics. As of as of December 31, 2023, the company owned and operated a fleet of approximately 40 active hydraulic fracturing; and two sand mines in the Permian Basin.

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