Louisiana-Pacific Corporation (NYSE:LPX) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Analysts give Louisiana‑Pacific a consensus rating of "Moderate Buy" (7 buys, 2 holds, 1 sell) with an average 12‑month price target of $105.83.
• Q4 results showed an EPS beat of $0.03 versus estimates of -$0.06, but revenue missed at $567.0M (est. $589.96M) and was down 16.7% year‑over‑year.
• Louisiana‑Pacific raised its quarterly dividend to $0.30 (annualized $1.20), implying a 1.5% yield and a payout ratio of about 53.6%.

Shares of Louisiana-Pacific Corporation (NYSE:LPX - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the ten analysts that are covering the stock, MarketBeat reports. One research analyst has rated the stock with a sell rating, two have given a hold rating and seven have given a buy rating to the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $105.8333.

A number of research analysts have commented on LPX shares. Zacks Research downgraded Louisiana-Pacific from a "hold" rating to a "strong sell" rating in a report on Thursday, March 5th. Oppenheimer reiterated an "outperform" rating on shares of Louisiana-Pacific in a report on Tuesday, March 3rd. Weiss Ratings reissued a "hold (c-)" rating on shares of Louisiana-Pacific in a research report on Monday, December 29th. Barclays lifted their price objective on shares of Louisiana-Pacific from $100.00 to $108.00 and gave the stock an "overweight" rating in a report on Thursday, January 15th. Finally, Truist Financial boosted their target price on shares of Louisiana-Pacific from $102.00 to $108.00 and gave the company a "buy" rating in a research note on Tuesday, January 6th.

Louisiana-Pacific Trading Up 0.1%

Shares of LPX opened at $77.74 on Tuesday. Louisiana-Pacific has a one year low of $73.42 and a one year high of $102.86. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.53 and a current ratio of 2.78. The company has a market capitalization of $5.43 billion, a P/E ratio of 37.20 and a beta of 1.78. The stock has a 50-day moving average price of $87.70 and a 200 day moving average price of $87.29.

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

Louisiana-Pacific Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 13th. Investors of record on Friday, February 27th will be given a dividend of $0.30 per share. The ex-dividend date of this dividend is Friday, February 27th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.5%. This is a boost from Louisiana-Pacific's previous quarterly dividend of $0.28. Louisiana-Pacific's payout ratio is currently 53.59%.

Insider Transactions at Louisiana-Pacific

In related news, CEO William Bradley Southern sold 55,346 shares of the firm's stock in a transaction that occurred on Wednesday, January 14th. The stock was sold at an average price of $91.66, for a total value of $5,073,014.36. Following the sale, the chief executive officer owned 503,381 shares of the company's stock, valued at approximately $46,139,902.46. This trade represents a 9.91% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director F Nicholas Grasberger III acquired 20,000 shares of Louisiana-Pacific stock in a transaction that occurred on Thursday, February 19th. The shares were bought at an average price of $85.49 per share, with a total value of $1,709,800.00. Following the transaction, the director directly owned 38,954 shares in the company, valued at approximately $3,330,177.46. This trade represents a 105.52% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders sold 155,842 shares of company stock worth $13,912,978 in the last three months. 1.42% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Louisiana-Pacific

Several large investors have recently added to or reduced their stakes in LPX. Eminence Capital LP increased its holdings in shares of Louisiana-Pacific by 72.3% in the 2nd quarter. Eminence Capital LP now owns 2,887,438 shares of the building manufacturing company's stock worth $248,291,000 after acquiring an additional 1,211,495 shares during the period. Boston Partners acquired a new position in Louisiana-Pacific during the 3rd quarter valued at about $100,770,000. Capital Research Global Investors boosted its stake in Louisiana-Pacific by 306.2% during the 4th quarter. Capital Research Global Investors now owns 1,273,497 shares of the building manufacturing company's stock valued at $102,848,000 after purchasing an additional 960,000 shares during the period. Norges Bank bought a new position in Louisiana-Pacific in the 2nd quarter worth about $72,299,000. Finally, 59 North Capital Management LP grew its position in Louisiana-Pacific by 26.3% in the 4th quarter. 59 North Capital Management LP now owns 3,536,884 shares of the building manufacturing company's stock worth $285,639,000 after purchasing an additional 737,406 shares during the last quarter. 94.73% of the stock is owned by institutional investors and hedge funds.

Louisiana-Pacific Company Profile

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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