Louisiana-Pacific (NYSE:LPX) Hits New 12-Month Low - What's Next?

Key Points

• Louisiana‑Pacific hit a new 52‑week low of $68.93 (last $68.999) on Wednesday, yet analysts maintain a Moderate Buy consensus with an average price target of $101.57, signaling a large gap between current price and analyst expectations.
• The company reported a quarterly EPS beat ($0.03 vs. -$0.06 expected) but revenue declined 16.7% year‑over‑year to $567 million, while analysts project about 2.7 EPS for the current fiscal year.
• Louisiana‑Pacific raised its quarterly dividend to $0.30 (1.7% yield); insider activity was mixed—a director bought 20,000 shares at $85.49 while the CEO sold ~21,252 shares—and institutional ownership remains very high at roughly 94.7% after several large fund purchases.

Louisiana-Pacific Corporation (NYSE:LPX - Get Free Report) shares reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $68.93 and last traded at $68.9990, with a volume of 192910 shares traded. The stock had previously closed at $70.71.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on LPX shares. Zacks Research lowered shares of Louisiana-Pacific from a "hold" rating to a "strong sell" rating in a research note on Thursday, March 5th. Royal Bank Of Canada reiterated an "outperform" rating and set a $104.00 price objective on shares of Louisiana-Pacific in a research note on Wednesday, February 18th. DA Davidson reduced their price objective on shares of Louisiana-Pacific from $117.00 to $114.00 and set a "buy" rating for the company in a research note on Monday, February 23rd. BMO Capital Markets dropped their target price on Louisiana-Pacific from $98.00 to $94.00 and set a "market perform" rating on the stock in a research report on Monday. Finally, Truist Financial lifted their price target on Louisiana-Pacific from $102.00 to $108.00 and gave the company a "buy" rating in a report on Tuesday, January 6th. Seven analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Louisiana-Pacific currently has a consensus rating of "Moderate Buy" and an average price target of $101.57.

Louisiana-Pacific Price Performance

The company has a market cap of $5.08 billion, a PE ratio of 34.83, a PEG ratio of 1.13 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 stock's 50-day moving average is $78.12 and its 200 day moving average is $83.17.

Louisiana-Pacific (NYSE:LPX - Get Free Report) last released 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. 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 business's revenue for the quarter was down 16.7% on a year-over-year basis. During the same period in the previous year, the company earned $1.03 earnings per share. On average, equities analysts anticipate that Louisiana-Pacific Corporation will post 2.7 earnings per share for the current fiscal 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 issued a $0.30 dividend. This is a boost from Louisiana-Pacific's previous quarterly dividend of $0.28. This represents a $1.20 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend was Friday, February 27th. Louisiana-Pacific's dividend payout ratio is 53.59%.

Insider Activity

In related news, Director F Nicholas Grasberger III acquired 20,000 shares of Louisiana-Pacific stock in a transaction on Thursday, February 19th. The stock was acquired at an average price of $85.49 per share, for a total transaction of $1,709,800.00. Following the purchase, the director owned 38,954 shares of the company's stock, valued at approximately $3,330,177.46. This represents a 105.52% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO William Bradley Southern sold 21,252 shares of the company's stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $88.19, for a total value of $1,874,213.88. Following the completion of the sale, the chief executive officer owned 460,883 shares in the company, valued at $40,645,271.77. The trade was a 4.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 43,798 shares of company stock worth $3,844,196 over the last 90 days. 0.65% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in LPX. Boston Partners purchased a new position in Louisiana-Pacific during the third quarter worth approximately $100,770,000. Capital Research Global Investors increased its stake in shares of Louisiana-Pacific by 306.2% in the 4th quarter. Capital Research Global Investors now owns 1,273,497 shares of the building manufacturing company's stock worth $102,848,000 after acquiring an additional 960,000 shares during the last quarter. Eminence Capital LP raised its holdings in shares of Louisiana-Pacific by 29.9% during the 4th quarter. Eminence Capital LP now owns 4,048,136 shares of the building manufacturing company's stock worth $326,927,000 after acquiring an additional 932,177 shares during the period. Norges Bank acquired a new position in shares of Louisiana-Pacific during the 4th quarter valued at about $60,184,000. Finally, 59 North Capital Management LP grew its holdings in shares of Louisiana-Pacific by 26.3% in the fourth quarter. 59 North Capital Management LP now owns 3,536,884 shares of the building manufacturing company's stock valued at $285,639,000 after purchasing an additional 737,406 shares during the period. 94.73% of the stock is currently owned by institutional investors and hedge funds.

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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