Louisiana-Pacific (NYSE:LPX) Hits New 52-Week Low - Time to Sell?

Key Points

• Louisiana-Pacific shares fell to a new 52-week low of $65.00, trading below both the 50-day and 200-day moving averages.
• Despite the decline, analysts maintain a “Moderate Buy” consensus, with an average price target of $93.67—well above the recent trading price.
• The company missed quarterly earnings expectations, reporting $0.40 EPS versus $0.56 expected, while revenue fell 12.1% year over year; its $1.20 annual dividend represents a 1.9% yield but a high 151.9% payout ratio.

Louisiana-Pacific Corporation (NYSE:LPX - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $65.00 and last traded at $64.8210, with a volume of 201033 shares. The stock had previously closed at $66.79.

Analyst Upgrades and Downgrades

LPX has been the topic of several recent research reports. TD raised their price objective on Louisiana-Pacific from $86.00 to $90.00 and gave the company a "buy" rating in a report on Tuesday, July 14th. DA Davidson reaffirmed a "buy" rating and issued a $99.00 target price on shares of Louisiana-Pacific in a report on Wednesday, September 2nd. Barclays cut their price target on Louisiana-Pacific from $93.00 to $92.00 and set an "overweight" rating on the stock in a research note on Thursday, August 6th. Bank of America upped their price objective on Louisiana-Pacific from $85.00 to $101.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Finally, Wolfe Research assumed coverage on shares of Louisiana-Pacific in a report on Thursday, September 10th. They issued an "outperform" rating and a $90.00 price objective for the company. Twelve equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $93.67.

Louisiana-Pacific Price Performance

The company has a fifty day simple moving average of $72.41 and a 200 day simple moving average of $74.04. The stock has a market capitalization of $4.53 billion, a price-to-earnings ratio of 82.09, a P/E/G ratio of 9.52 and a beta of 1.59. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.67 and a current ratio of 3.22.

Louisiana-Pacific (NYSE:LPX - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The building manufacturing company reported $0.40 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.16). Louisiana-Pacific had a net margin of 2.19% and a return on equity of 4.67%. The company had revenue of $664.00 million during the quarter, compared to analyst estimates of $667.31 million. During the same period in the previous year, the company posted $0.99 EPS. The company's quarterly revenue was down 12.1% on a year-over-year basis. Equities research analysts forecast that Louisiana-Pacific Corporation will post 1.17 EPS for the current fiscal year.

Louisiana-Pacific Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 14th were issued a dividend of $0.30 per share. The ex-dividend date was Friday, August 14th. This represents a $1.20 annualized dividend and a yield of 1.9%. Louisiana-Pacific's dividend payout ratio (DPR) is presently 151.90%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Western Wealth Management LLC bought a new position in shares of Louisiana-Pacific in the 1st quarter worth $25,000. Parallel Advisors LLC increased its stake in Louisiana-Pacific by 204.0% during the 1st 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. Root Financial Partners LLC increased its stake in Louisiana-Pacific by 177.6% during the 1st 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 in the last quarter. Whittier Trust Co. raised its holdings in Louisiana-Pacific by 138.1% during the first quarter. Whittier Trust Co. now owns 500 shares of the building manufacturing company's stock worth $36,000 after buying an additional 290 shares during the last quarter. Finally, Meeder Asset Management Inc. raised its holdings in Louisiana-Pacific by 1,505.4% during the first quarter. Meeder Asset Management Inc. now owns 594 shares of the building manufacturing company's stock worth $43,000 after buying an additional 557 shares during the last quarter. Institutional investors and hedge funds own 94.73% of the company's stock.

Louisiana-Pacific Company Profile

Louisiana-Pacific Corporation, operating as LP Building Solutions, manufactures building products used in residential, repair and remodeling, and commercial construction. Its portfolio includes oriented strand board (OSB) structural panels, siding, trim, and related engineered wood products designed for walls, roofs, floors, and exterior applications.

The company's principal brands include LP SmartSide siding and trim, which are engineered wood products for residential and light-commercial exteriors, and LP Structural Solutions products, including OSB panels and specialty sheathing.

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