Louisiana-Pacific (NYSE:LPX) Sets New 1-Year Low - What's Next?

Key Points

• Louisiana-Pacific shares fell to a new 52-week low of $63.29 during Thursday trading, down about 3%, and remain below their 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive despite the decline: 12 analysts rate LPX a Buy, with an average price target of $93.67 versus the current price.
• The company reported weaker quarterly results, with EPS of $0.40 versus the $0.56 consensus estimate and revenue down 12.1% year over year; it continues to pay a $0.30 quarterly dividend, yielding approximately 1.9%.

Louisiana-Pacific Corporation (NYSE:LPX - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Thursday. The stock traded as low as $63.29 and last traded at $63.0490, with a volume of 29935 shares traded. The stock had previously closed at $64.55.

Analyst Ratings Changes

Several equities analysts have weighed in on LPX shares. Weiss Ratings upgraded shares of Louisiana-Pacific from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, September 2nd. Zacks Research downgraded shares of Louisiana-Pacific from a "hold" rating to a "strong sell" rating in a report on Tuesday, June 30th. Jefferies Financial Group initiated coverage on shares of Louisiana-Pacific in a research report on Tuesday, June 23rd. They set a "buy" rating and a $93.00 price target on the stock. Truist Financial decreased their price objective on Louisiana-Pacific from $91.00 to $89.00 and set a "buy" rating on the stock in a report on Thursday, August 6th. Finally, TD increased their price objective on Louisiana-Pacific from $86.00 to $90.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. Twelve analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $93.67.

Louisiana-Pacific Trading Down 3.0%

The company has a market cap of $4.38 billion, a PE ratio of 79.01, a price-to-earnings-growth ratio of 9.31 and a beta of 1.59. The company's 50 day simple moving average is $70.67 and its two-hundred day simple moving average is $72.82. The company has a debt-to-equity ratio of 0.20, a current ratio of 3.22 and a quick ratio of 1.67.

Louisiana-Pacific (NYSE:LPX - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The building manufacturing company reported $0.40 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.56 by ($0.16). The company had revenue of $664.00 million during the quarter, compared to analysts' expectations of $667.31 million. Louisiana-Pacific had a net margin of 2.19% and a return on equity of 4.67%. Louisiana-Pacific's revenue was down 12.1% on a year-over-year basis. During the same period last year, the firm posted $0.99 earnings per share. As a group, sell-side analysts anticipate 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 paid a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date was Friday, August 14th. Louisiana-Pacific's dividend payout ratio is 151.90%.

Institutional Investors Weigh In On Louisiana-Pacific

A number of institutional investors have recently modified their holdings of LPX. Versant Capital Management Inc boosted its holdings in Louisiana-Pacific by 27.3% during the 2nd quarter. Versant Capital Management Inc now owns 630 shares of the building manufacturing company's stock valued at $50,000 after acquiring an additional 135 shares during the period. EverSource Wealth Advisors LLC increased its stake in Louisiana-Pacific by 26.0% during the first quarter. EverSource Wealth Advisors LLC now owns 692 shares of the building manufacturing company's stock worth $50,000 after purchasing an additional 143 shares during the period. Valeo Financial Advisors LLC increased its stake in Louisiana-Pacific by 1.6% during the second quarter. Valeo Financial Advisors LLC now owns 9,225 shares of the building manufacturing company's stock worth $726,000 after purchasing an additional 147 shares during the period. HB Wealth Management LLC lifted its position in shares of Louisiana-Pacific by 4.2% during the second quarter. HB Wealth Management LLC now owns 4,106 shares of the building manufacturing company's stock worth $323,000 after purchasing an additional 164 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its position in shares of Louisiana-Pacific by 2.3% during the second quarter. NewEdge Advisors LLC now owns 8,875 shares of the building manufacturing company's stock worth $698,000 after purchasing an additional 200 shares in the last quarter. 94.73% of the stock is owned by institutional investors and hedge funds.

Louisiana-Pacific Company Profile

Louisiana-Pacific Corporation NYSE: LPX is a manufacturer of building products used in residential and light commercial construction. The company's portfolio includes engineered wood siding and trim, oriented strand board (OSB), and other engineered wood products designed for wall, roof, and structural applications.

Louisiana-Pacific is best known for its LP SmartSide siding and trim products, which are made from engineered wood and marketed as alternatives to traditional wood siding.

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