Louisiana-Pacific (NYSE:LPX) Reaches New 1-Year Low - Here's What Happened

Key Points

• Louisiana-Pacific shares hit a new 52-week low, falling as low as $66.12 in Wednesday trading before last changing hands around $68.27.
• Despite the stock weakness, analysts remain generally positive: nine rate it a Buy, two a Hold, and the consensus price target is $97.25, with several firms recently upgrading or reaffirming bullish ratings.
• The company beat quarterly EPS expectations with $0.38 per share versus $0.14 expected, though revenue still declined 20.7% year over year and the stock now trades well below its 50-day and 200-day moving averages.

Louisiana-Pacific Corporation (NYSE:LPX - Get Free Report)'s stock price hit a new 52-week low during trading on Wednesday . The stock traded as low as $66.12 and last traded at $68.2730, with a volume of 40231 shares changing hands. The stock had previously closed at $67.02.

Wall Street Analyst Weigh In

LPX has been the topic of several analyst reports. Weiss Ratings upgraded shares of Louisiana-Pacific from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, May 8th. Truist Financial restated a "buy" rating and issued a $93.00 target price (down from $95.00) on shares of Louisiana-Pacific in a research note on Friday, May 8th. BMO Capital Markets upgraded shares of Louisiana-Pacific from a "market perform" rating to an "outperform" rating and set a $94.00 target price on the stock in a research note on Thursday, May 7th. Oppenheimer dropped their target price on shares of Louisiana-Pacific from $115.00 to $107.00 and set an "outperform" rating on the stock in a research note on Thursday, May 7th. Finally, TD Securities upgraded shares of Louisiana-Pacific from a "hold" rating to a "buy" rating in a research note on Thursday, May 7th. Nine investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $97.25.

Louisiana-Pacific Price Performance

The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.48 and a current ratio of 3.26. The firm has a market capitalization of $4.85 billion, a P/E ratio of 58.64, a P/E/G ratio of 1.77 and a beta of 1.60. The stock's 50 day simple moving average is $73.46 and its 200 day simple moving average is $80.88.

Louisiana-Pacific (NYSE:LPX - Get Free Report) last issued its earnings results on Wednesday, May 6th. The building manufacturing company reported $0.38 EPS for the quarter, topping analysts' consensus estimates of $0.14 by $0.24. The business had revenue of $574.00 million for the quarter, compared to the consensus estimate of $569.99 million. Louisiana-Pacific had a net margin of 3.20% and a return on equity of 7.03%. The company's revenue for the quarter was down 20.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.27 EPS. As a group, analysts expect that Louisiana-Pacific Corporation will post 2 earnings per share for the current fiscal year.

Louisiana-Pacific Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, May 28th. Stockholders of record on Thursday, May 14th will be paid a dividend of $0.30 per share. The ex-dividend date is Thursday, May 14th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.7%. Louisiana-Pacific's dividend payout ratio (DPR) is currently 101.69%.

Insider Buying and Selling

In other Louisiana-Pacific news, Director F Nicholas Grasberger III acquired 20,000 shares of the company's stock in a transaction dated Thursday, February 19th. The shares were purchased at an average cost of $85.49 per share, for a total transaction of $1,709,800.00. Following the completion of the purchase, the director 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 transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Lizanne M. Bruce sold 1,300 shares of the stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $78.59, for a total transaction of $102,167.00. Following the transaction, the director owned 17,160 shares in the company, valued at approximately $1,348,604.40. This represents a 7.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.65% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Louisiana-Pacific

A number of hedge funds and other institutional investors have recently modified their holdings of LPX. Western Wealth Management LLC bought a new position in shares of Louisiana-Pacific during the first quarter valued at approximately $25,000. North Ridge Wealth Advisors Inc. bought a new position in shares of Louisiana-Pacific during the second quarter valued at approximately $26,000. Parallel Advisors LLC boosted its stake in shares of Louisiana-Pacific by 204.0% during the first quarter. Parallel Advisors LLC now owns 380 shares of the building manufacturing company's stock valued at $28,000 after purchasing an additional 255 shares in the last quarter. Los Angeles Capital Management LLC purchased a new stake in Louisiana-Pacific during the fourth quarter valued at approximately $29,000. Finally, Root Financial Partners LLC lifted its position in Louisiana-Pacific by 177.6% during the first quarter. Root Financial Partners LLC now owns 433 shares of the building manufacturing company's stock valued at $32,000 after acquiring an additional 277 shares during the last quarter. 94.73% of the stock is currently owned by institutional investors.

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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