Louisiana-Pacific (NYSE:LPX) Rating Lowered to "Sell" at Wall Street Zen

Key Points

• Louisiana-Pacific has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, signaling a negative outlook for the company.
• Other analysts have varied ratings, with some setting buy ratings despite lowering their price targets, indicating mixed opinions on the stock's performance.
• The company reported earnings exceeding analysts' estimates, but its earnings per share dropped year-over-year, reflecting potential concerns about future growth.

Louisiana-Pacific (NYSE:LPX - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Sunday.

A number of other research firms have also weighed in on LPX. Loop Capital raised shares of Louisiana-Pacific from a "hold" rating to a "buy" rating and set a $110.00 price objective for the company in a research report on Wednesday, May 7th. DA Davidson reduced their price target on Louisiana-Pacific from $123.00 to $117.00 and set a "buy" rating on the stock in a research note on Wednesday, June 25th. Truist Financial lowered their price objective on Louisiana-Pacific from $111.00 to $108.00 and set a "buy" rating for the company in a research report on Friday, July 11th. Finally, Royal Bank Of Canada increased their target price on Louisiana-Pacific from $114.00 to $115.00 and gave the stock an "outperform" rating in a research report on Wednesday, May 7th. Three investment analysts have rated the stock with a sell rating, two have assigned a hold rating and four have given a buy rating to the stock. According to data from MarketBeat, Louisiana-Pacific has an average rating of "Hold" and a consensus price target of $106.13.

Louisiana-Pacific Price Performance

Shares of LPX stock traded down $2.94 during trading hours on Friday, hitting $92.02. The company's stock had a trading volume of 1,111,202 shares, compared to its average volume of 721,767. The company has a current ratio of 3.03, a quick ratio of 1.59 and a debt-to-equity ratio of 0.21. Louisiana-Pacific has a twelve month low of $78.82 and a twelve month high of $122.87. The stock has a market cap of $6.40 billion, a price-to-earnings ratio of 16.11, a P/E/G ratio of 1.57 and a beta of 1.80. The business has a fifty day moving average of $89.71 and a 200-day moving average of $94.32.

Louisiana-Pacific (NYSE:LPX - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The building manufacturing company reported $0.99 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.08 by ($0.09). Louisiana-Pacific had a net margin of 13.74% and a return on equity of 23.75%. During the same period in the previous year, the company earned $2.09 earnings per share. Louisiana-Pacific's quarterly revenue was down 7.2% compared to the same quarter last year. As a group, equities research analysts anticipate that Louisiana-Pacific will post 5.27 EPS for the current year.

Insiders Place Their Bets

In other Louisiana-Pacific news, Director Lizanne C. Gottung sold 1,179 shares of the firm's stock in a transaction dated Wednesday, June 11th. The stock was sold at an average price of $89.52, for a total value of $105,544.08. Following the transaction, the director directly owned 18,838 shares of the company's stock, valued at $1,686,377.76. This trade represents a 5.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 1.42% of the company's stock.

Institutional Investors Weigh In On Louisiana-Pacific

Hedge funds have recently modified their holdings of the stock. Valeo Financial Advisors LLC raised its stake in shares of Louisiana-Pacific by 33,243.5% during the second quarter. Valeo Financial Advisors LLC now owns 2,588,787 shares of the building manufacturing company's stock valued at $222,610,000 after purchasing an additional 2,581,023 shares during the period. Alyeska Investment Group L.P. grew its holdings in Louisiana-Pacific by 1,736.2% during the 4th quarter. Alyeska Investment Group L.P. now owns 891,351 shares of the building manufacturing company's stock valued at $92,299,000 after purchasing an additional 842,809 shares in the last quarter. 59 North Capital Management LP increased its stake in Louisiana-Pacific by 32.1% during the 1st quarter. 59 North Capital Management LP now owns 2,618,643 shares of the building manufacturing company's stock worth $240,863,000 after buying an additional 635,817 shares during the period. Palestra Capital Management LLC lifted its holdings in Louisiana-Pacific by 173.5% in the 1st quarter. Palestra Capital Management LLC now owns 911,621 shares of the building manufacturing company's stock worth $83,851,000 after buying an additional 578,248 shares in the last quarter. Finally, FMR LLC lifted its holdings in Louisiana-Pacific by 17.1% in the 4th quarter. FMR LLC now owns 3,708,649 shares of the building manufacturing company's stock worth $384,031,000 after buying an additional 540,703 shares in the last quarter. 94.73% of the stock is currently owned by hedge funds and other institutional investors.

Louisiana-Pacific Company Profile

Louisiana-Pacific Corporation, together with its subsidiaries, provides building solutions primarily for use in new home construction, repair and remodeling, and outdoor structure markets. It operates through Siding, Oriented Strand Board, LP South America, and Other segments. The Siding segment offers LP SmartSide trim and siding products, LP SmartSide ExpertFinish trim and siding products, LP BuilderSeries lap siding products, and LP Outdoor Building Solutions; and engineered wood siding, trim, soffit, and fascia products.