Louisiana-Pacific (NYSE:LPX) Downgraded by Zacks Research to Strong Sell

Key Points

• Zacks Research downgraded Louisiana-Pacific (LPX) from a "hold" to a strong sell, according to a report released Thursday.
• Despite the Zacks downgrade, the MarketBeat consensus remains a Moderate Buy with seven analysts rating LPX a Buy and a consensus target price of $105.83.
• Shares opened at $77.87 (down ~3.2%); the company posted a quarterly EPS beat ($0.03 vs. -$0.06) but revenue fell 16.7% year-over-year, and insider activity was mixed with a director buying 20,000 shares while the CEO and other insiders sold stock in recent months.

Louisiana-Pacific (NYSE:LPX - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Thursday,Zacks.com reports.

LPX has been the topic of a number of other research reports. Oppenheimer restated an "outperform" rating on shares of Louisiana-Pacific in a report on Tuesday. DA Davidson cut their price target on shares of Louisiana-Pacific from $117.00 to $114.00 and set a "buy" rating on the stock in a research report on Monday, February 23rd. TD Securities lowered their price objective on shares of Louisiana-Pacific from $97.00 to $91.00 and set a "hold" rating on the stock in a research note on Thursday, November 6th. Barclays increased their price objective on shares of Louisiana-Pacific from $100.00 to $108.00 and gave the company an "overweight" rating in a research report on Thursday, January 15th. Finally, Truist Financial lifted their price objective on shares of Louisiana-Pacific from $102.00 to $108.00 and gave the stock a "buy" rating in a research note on Tuesday, January 6th. Seven analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $105.83.

Louisiana-Pacific Trading Down 3.2%

Shares of LPX stock opened at $77.87 on Thursday. Louisiana-Pacific has a 12-month low of $73.42 and a 12-month high of $102.86. The firm has a 50-day moving average price of $87.78 and a 200 day moving average price of $87.51. The company has a quick ratio of 1.53, a current ratio of 2.78 and a debt-to-equity ratio of 0.20. The company has a market capitalization of $5.44 billion, a P/E ratio of 37.26 and a beta of 1.78.

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

Insider Activity

In related news, Director F Nicholas Grasberger III acquired 20,000 shares of the stock in a transaction dated Thursday, February 19th. The stock was bought at an average price of $85.49 per share, for a total transaction of $1,709,800.00. Following the purchase, the director directly owned 38,954 shares of the company's stock, valued at $3,330,177.46. The trade was a 105.52% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO William Bradley Southern sold 55,346 shares of the firm's stock in a transaction dated Wednesday, January 14th. The shares were sold at an average price of $91.66, for a total value of $5,073,014.36. Following the completion of the sale, the chief executive officer owned 503,381 shares of the company's stock, valued at approximately $46,139,902.46. This represents a 9.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 155,842 shares of company stock valued at $13,912,978. Corporate insiders own 1.42% of the company's stock.

Institutional Investors Weigh In On Louisiana-Pacific

Several hedge funds and other institutional investors have recently made changes to their positions in the business. North Ridge Wealth Advisors Inc. bought a new position in shares of Louisiana-Pacific in the second quarter valued at approximately $26,000. Los Angeles Capital Management LLC bought a new position in shares of Louisiana-Pacific during the 4th quarter worth $29,000. Versant Capital Management Inc raised its position in shares of Louisiana-Pacific by 34.3% in the third quarter. Versant Capital Management Inc now owns 497 shares of the building manufacturing company's stock valued at $44,000 after purchasing an additional 127 shares during the period. Larson Financial Group LLC grew its position in shares of Louisiana-Pacific by 291.2% in the third quarter. Larson Financial Group LLC now owns 536 shares of the building manufacturing company's stock valued at $48,000 after purchasing an additional 399 shares in the last quarter. Finally, International Assets Investment Management LLC bought a new position in shares of Louisiana-Pacific in the fourth quarter valued at approximately $52,000. 94.73% of the stock is owned by institutional investors.

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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