Investors Buy High Volume of Call Options on Liberty Energy (NYSE:LBRT)

Key Points

• Liberty Energy saw unusually high call-option activity, with 40,180 call options purchased—about 2,340% above its typical volume of 1,647 contracts.
• Analysts maintain a generally favorable outlook, with a consensus rating of “Moderate Buy” and an average price target of $27.54, although recent targets and ratings were mixed.
• LBRT shares fell 0.9% to $18.27, despite the company beating quarterly earnings and revenue estimates; institutional investors own 98.22% of the stock, and Liberty recently paid a quarterly dividend of $0.09 per share.

Liberty Energy Inc. (NYSE:LBRT - Get Free Report) was the recipient of unusually large options trading activity on Wednesday. Stock traders purchased 40,180 call options on the stock. This represents an increase of approximately 2,340% compared to the typical volume of 1,647 call options.

Wall Street Analysts Forecast Growth

LBRT has been the topic of several research reports. Wall Street Zen lowered shares of Liberty Energy from a "hold" rating to a "sell" rating in a report on Saturday, August 1st. Morgan Stanley set a $32.00 target price on Liberty Energy in a research note on Friday, July 24th. The Goldman Sachs Group set a $23.00 target price on Liberty Energy in a research report on Friday, August 7th. Weiss Ratings downgraded Liberty Energy from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, September 18th. Finally, Citigroup cut their price target on Liberty Energy from $28.50 to $27.50 and set a "buy" rating on the stock in a report on Wednesday. Eight research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $27.54.

Insiders Place Their Bets

In other news, Director Arjun Murti bought 14,053 shares of the stock in a transaction that occurred on Tuesday, July 28th. The stock was acquired at an average price of $17.79 per share, with a total value of $250,002.87. Following the completion of the purchase, the director directly owned 41,621 shares of the company's stock, valued at approximately $740,437.59. This represents a 50.98% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Michael Stock sold 6,666 shares of Liberty Energy stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $19.84, for a total value of $132,253.44. Following the completion of the transaction, the chief financial officer directly owned 760,379 shares of the company's stock, valued at approximately $15,085,919.36. This trade represents a 0.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of LBRT. Eventide Asset Management LLC bought a new stake in Liberty Energy in the 4th quarter worth about $36,394,000. Situational Awareness LP purchased a new stake in Liberty Energy in the 4th quarter valued at about $10,471,000. Clearline Capital LP bought a new position in shares of Liberty Energy during the 4th quarter worth approximately $8,205,000. Bank of New York Mellon Corp bought a new position in shares of Liberty Energy during the 2nd quarter worth approximately $61,185,000. Finally, Arlington Capital Management Inc. purchased a new position in shares of Liberty Energy in the 2nd quarter worth approximately $3,821,000. Hedge funds and other institutional investors own 98.22% of the company's stock.

Liberty Energy Stock Down 0.9%

Shares of NYSE:LBRT traded down $0.17 during midday trading on Wednesday, hitting $18.27. 6,615,419 shares of the company's stock were exchanged, compared to its average volume of 3,442,834. The company has a debt-to-equity ratio of 0.74, a current ratio of 1.99 and a quick ratio of 1.75. Liberty Energy has a 12 month low of $11.52 and a 12 month high of $34.48. The company has a market cap of $2.98 billion, a PE ratio of 24.70, a price-to-earnings-growth ratio of 2.52 and a beta of 0.61. The stock has a 50 day moving average price of $19.56 and a 200-day moving average price of $25.58.

Liberty Energy (NYSE:LBRT - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The company reported $0.09 earnings per share for the quarter, beating the consensus estimate of $0.08 by $0.01. The business had revenue of $1.19 billion for the quarter, compared to analysts' expectations of $1.09 billion. Liberty Energy had a net margin of 2.92% and a return on equity of 1.14%. The firm's revenue for the quarter was up 14.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.12 EPS. On average, sell-side analysts anticipate that Liberty Energy will post 0.35 EPS for the current fiscal year.

Liberty Energy Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, September 18th. Stockholders of record on Friday, September 4th were issued a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date was Friday, September 4th. Liberty Energy's dividend payout ratio (DPR) is currently 48.65%.

Liberty Energy Company Profile

Liberty Energy Inc is an energy services company that provides specialized equipment, technology and services used in the development of onshore oil and natural gas resources. The company primarily supports exploration and production companies during the well-completion process, with an emphasis on hydraulic fracturing and related operations.

Its services and products include hydraulic fracturing, wireline services, proppant logistics, frac-related equipment, field engineering and operational support.

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