Liberty Latin America (NASDAQ:LILA) Stock Price Breaks Below 200-Day Moving Average - Here's What Happened

Key Points

• Liberty Latin America shares fell below their 200-day moving average, trading as low as $7.70 and last changing hands at $7.76, down 3.5%.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating and a $10.00 target price, with Morgan Stanley downgrading it to “underweight” and setting a $7.00 target.
• Despite weak profitability—including a quarterly loss of $0.13 per share—insiders acquired 970,439 shares worth approximately $16.2 million over the past 90 days, while institutional ownership stands at 18.48%.

Liberty Latin America Ltd. (NASDAQ:LILA - Get Free Report)'s stock price crossed below its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $7.97 and traded as low as $7.70. Liberty Latin America shares last traded at $7.76, with a volume of 398,095 shares trading hands.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on LILA shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Liberty Latin America in a research note on Thursday, October 15th. Morgan Stanley downgraded shares of Liberty Latin America from an "equal weight" rating to an "underweight" rating and set a $7.00 price target on the stock. in a research note on Thursday, August 20th. Finally, UBS Group raised shares of Liberty Latin America to a "hold" rating in a research note on Thursday, September 3rd. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Liberty Latin America has an average rating of "Reduce" and an average target price of $10.00.

Liberty Latin America Trading Down 3.5%

The stock has a 50-day moving average price of $8.47 and a two-hundred day moving average price of $7.97. The stock has a market capitalization of $1.52 billion, a P/E ratio of -15.84 and a beta of 0.72. The company has a debt-to-equity ratio of 8.08, a quick ratio of 1.19 and a current ratio of 1.19.

Liberty Latin America (NASDAQ:LILA - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($0.13) EPS for the quarter. Liberty Latin America had a negative return on equity of 9.29% and a negative net margin of 2.20%. The company had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.10 billion. On average, research analysts forecast that Liberty Latin America Ltd. will post -0.47 EPS for the current fiscal year.

Insider Transactions at Liberty Latin America

In related news, Director John C. Malone purchased 21,013 shares of Liberty Latin America stock in a transaction dated Wednesday, September 30th. The stock was purchased at an average cost of $8.98 per share, for a total transaction of $188,696.74. Following the completion of the acquisition, the director directly owned 1,412,175 shares of the company's stock, valued at $12,681,331.50. The trade was a 1.51% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Angoitia Alfonso De acquired 313,104 shares of Liberty Latin America stock in a transaction that occurred on Wednesday, September 2nd. The stock was acquired at an average price of $20.95 per share, with a total value of $6,559,528.80. Following the completion of the acquisition, the director directly owned 476,190 shares in the company, valued at $9,976,180.50. This represents a 191.99% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders acquired 970,439 shares of company stock worth $16,180,721. Corporate insiders own 6.25% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Cook & Bynum Capital Management LLC bought a new stake in Liberty Latin America in the 2nd quarter worth approximately $1,111,093. Renaissance Technologies LLC raised its stake in shares of Liberty Latin America by 27.3% during the 1st quarter. Renaissance Technologies LLC now owns 864,559 shares of the company's stock worth $7,470,000 after acquiring an additional 185,300 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Liberty Latin America in the second quarter worth $3,140,000. S&CO Inc. acquired a new position in Liberty Latin America during the second quarter valued at $1,236,000. Finally, Rubric Capital Management LP raised its holdings in Liberty Latin America by 93.0% in the 1st quarter. Rubric Capital Management LP now owns 3,750,000 shares of the company's stock worth $32,400,000 after purchasing an additional 1,806,935 shares during the period. Hedge funds and other institutional investors own 18.48% of the company's stock.

Liberty Latin America Company Profile

Liberty Latin America Ltd. NASDAQ: LILA is a telecommunications and connectivity company serving customers across Latin America and the Caribbean. Its operations provide broadband internet, mobile and fixed-line communications, video and entertainment services, and business connectivity solutions to residential, commercial, and government customers.

The company operates through a portfolio of regional businesses and brands, including Liberty and Flow, as well as operations in markets such as Puerto Rico, Chile, Costa Rica, Panama, and several Caribbean countries.

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