Louisiana-Pacific (NYSE:LPX) Reaches New 12-Month Low - Time to Sell?

Key Points

• New 52-week low: Shares hit a new 52-week low of $68.81 (last $68.91) on Monday with ~303,080 shares traded, while the 50-day and 200-day moving averages sit at $75.75 and $82.39 respectively.
• Mixed analyst view but higher target: The consensus rating is "Hold" with a consensus price target of $101.57, though recent analyst actions vary (seven Buys, two Holds, two Sells) and several firms have both raised and cut targets in recent months.
• Fundamentals and shareholder actions: Q4 EPS beat at $0.03 versus a ($0.06) estimate but revenue fell 16.7% year-over-year; the company pays a $0.30 quarterly dividend (1.7% yield) and insiders sold ~36,718 shares (~$3.24M) in the last 90 days.

Shares of Louisiana-Pacific Corporation (NYSE:LPX - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The company traded as low as $68.81 and last traded at $68.9090, with a volume of 303080 shares trading hands. The stock had previously closed at $71.26.

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Analysts Set New Price Targets

A number of equities analysts have recently commented on LPX shares. BMO Capital Markets dropped their target price on Louisiana-Pacific from $98.00 to $94.00 and set a "market perform" rating for the company in a report on Monday, April 20th. Truist Financial raised their price target on Louisiana-Pacific from $102.00 to $108.00 and gave the stock a "buy" rating in a research report on Tuesday, January 6th. Oppenheimer reaffirmed an "outperform" rating on shares of Louisiana-Pacific in a research note on Tuesday, March 3rd. Royal Bank Of Canada reissued an "outperform" rating and issued a $104.00 target price on shares of Louisiana-Pacific in a research note on Wednesday, February 18th. Finally, Barclays lowered their target price on shares of Louisiana-Pacific from $104.00 to $90.00 and set an "overweight" rating for the company in a report on Wednesday, April 8th. Seven investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $101.57.

Louisiana-Pacific Stock Performance

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 has a market capitalization of $4.81 billion, a PE ratio of 32.97, a P/E/G ratio of 1.09 and a beta of 1.60. The firm has a fifty day moving average price of $75.75 and a two-hundred day moving average price of $82.39.

Louisiana-Pacific (NYSE:LPX - Get Free Report) last posted its quarterly earnings data 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. Louisiana-Pacific had a return on equity of 10.72% and a net margin of 5.39%.The company had revenue of $567.00 million during the quarter, compared to analysts' expectations of $589.96 million. During the same quarter in the previous year, the business earned $1.03 EPS. Louisiana-Pacific's revenue was down 16.7% compared to the same quarter last year. Research analysts expect that Louisiana-Pacific Corporation will post 2.7 EPS for the current year.

Louisiana-Pacific Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, May 28th. Stockholders of record on Thursday, May 14th will be issued a $0.30 dividend. 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 is presently 53.59%.

Insider Buying and Selling

In other news, Director Lizanne M. Bruce sold 1,300 shares of the firm's 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 directly owned 17,160 shares of the company's stock, valued at approximately $1,348,604.40. This trade represents a 7.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 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 transaction of $1,874,213.88. Following the completion of the sale, the chief executive officer directly owned 460,883 shares of the company's stock, valued at approximately $40,645,271.77. This trade represents a 4.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 36,718 shares of company stock valued at $3,241,263 in the last 90 days. Company insiders own 0.65% of the company's stock.

Institutional Trading of Louisiana-Pacific

Hedge funds have recently bought and sold shares of the stock. North Ridge Wealth Advisors Inc. purchased a new position in shares of Louisiana-Pacific in the 2nd quarter valued at $26,000. Los Angeles Capital Management LLC purchased a new position in Louisiana-Pacific in the fourth quarter valued at about $29,000. Root Financial Partners LLC grew its stake in Louisiana-Pacific by 177.6% in the first quarter. Root Financial Partners LLC now owns 433 shares of the building manufacturing company's stock valued at $32,000 after purchasing an additional 277 shares during the last quarter. Versant Capital Management Inc raised its holdings in Louisiana-Pacific by 34.3% in the third quarter. Versant Capital Management Inc now owns 497 shares of the building manufacturing company's stock worth $44,000 after purchasing an additional 127 shares in the last quarter. Finally, Whittier Trust Co. lifted its position in shares of Louisiana-Pacific by 138.1% during the first quarter. Whittier Trust Co. now owns 500 shares of the building manufacturing company's stock valued at $36,000 after buying an additional 290 shares during the last quarter. Hedge funds and other institutional investors own 94.73% of the company's stock.

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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