Live Oak Bancshares (NYSE:LOB) Stock Price Down 7.2% - Here's What Happened

Key Points

• Live Oak Bancshares shares fell 7.2% to $33.85 during Wednesday trading, with volume below its daily average.
• Analyst sentiment is mixed: the consensus rating is “Hold”, with an average price target of $43.50, despite recent target changes ranging from $38 to $47.
• The company exceeded quarterly earnings expectations, reporting $0.74 EPS versus the $0.64 estimate, and maintains a quarterly dividend of $0.03 per share.

Live Oak Bancshares, Inc. (NYSE:LOB - Get Free Report)'s stock price were down 7.2% during trading on Wednesday. The stock traded as low as $33.88 and last traded at $33.85. Approximately 201,174 shares changed hands during mid-day trading, a decline of 25% from the average daily volume of 267,718 shares. The stock had previously closed at $36.49.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on LOB shares. TD Cowen reduced their target price on Live Oak Bancshares from $49.00 to $44.00 and set a "buy" rating for the company in a report on Monday. Cantor Fitzgerald raised their price target on shares of Live Oak Bancshares from $44.00 to $45.00 and gave the stock a "neutral" rating in a report on Wednesday, August 19th. Zacks Research downgraded shares of Live Oak Bancshares from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 31st. Piper Sandler dropped their price target on shares of Live Oak Bancshares from $46.00 to $38.00 and set a "neutral" rating on the stock in a research note on Wednesday. Finally, Keefe, Bruyette & Woods lifted their price objective on Live Oak Bancshares from $45.00 to $47.00 and gave the company an "outperform" rating in a research report on Friday, July 24th. Two investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $43.50.

Live Oak Bancshares Price Performance

The stock's fifty day moving average is $39.94 and its 200-day moving average is $38.56. The stock has a market capitalization of $1.57 billion, a P/E ratio of 11.92 and a beta of 1.94.

Live Oak Bancshares (NYSE:LOB - Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The company reported $0.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.64 by $0.10. Live Oak Bancshares had a return on equity of 11.77% and a net margin of 12.68%.The company had revenue of $156.15 million during the quarter. On average, research analysts expect that Live Oak Bancshares, Inc. will post 3.07 EPS for the current year.

Live Oak Bancshares Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were paid a $0.03 dividend. The ex-dividend date was Tuesday, September 1st. This represents a $0.12 dividend on an annualized basis and a yield of 0.4%. Live Oak Bancshares's dividend payout ratio (DPR) is presently 4.23%.

Insider Activity

In other Live Oak Bancshares news, Director Willam Williams, III sold 8,400 shares of the company's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $43.08, for a total transaction of $361,872.00. Following the completion of the sale, the director directly owned 1,114,126 shares in the company, valued at $47,996,548.08. This represents a 0.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Mark Moroz sold 6,100 shares of the business's stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $42.08, for a total value of $256,688.00. Following the transaction, the insider directly owned 12,110 shares of the company's stock, valued at $509,588.80. This represents a 33.50% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 29,654 shares of company stock worth $1,240,814. Insiders own 22.40% of the company's stock.

Institutional Investors Weigh In On Live Oak Bancshares

Hedge funds have recently made changes to their positions in the stock. Versant Capital Management Inc raised its holdings in Live Oak Bancshares by 98.9% in the 3rd quarter. Versant Capital Management Inc now owns 2,080 shares of the company's stock valued at $75,000 after acquiring an additional 1,034 shares in the last quarter. Engineers Gate Manager LP lifted its holdings in shares of Live Oak Bancshares by 26.4% during the 2nd quarter. Engineers Gate Manager LP now owns 15,215 shares of the company's stock worth $621,000 after acquiring an additional 3,180 shares during the period. Benjamin Edwards Inc. boosted its position in shares of Live Oak Bancshares by 3.1% during the 2nd quarter. Benjamin Edwards Inc. now owns 16,857 shares of the company's stock valued at $688,000 after acquiring an additional 499 shares in the last quarter. Hsbc Holdings PLC bought a new position in Live Oak Bancshares during the second quarter worth about $326,000. Finally, Empowered Funds LLC acquired a new stake in Live Oak Bancshares during the second quarter valued at approximately $3,643,000. Institutional investors own 63.95% of the company's stock.

About Live Oak Bancshares

Live Oak Bancshares, Inc is a financial holding company headquartered in Wilmington, North Carolina. Through its principal subsidiary, Live Oak Bank, the company provides banking and financial services to small and middle-market businesses, professionals, entrepreneurs and individuals.

Live Oak Bank is known for its specialized lending model, including Small Business Administration (SBA) loans and financing for businesses in industries such as veterinary medicine, healthcare, agriculture, investment advisory and government contracting.

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