Louisiana-Pacific (NYSE:LPX) Stock Price Breaks Above 200 Day Moving Average - Should You Sell?

Key Points

• Louisiana-Pacific shares moved above their 200-day moving average, trading near $75.43 versus the $75.34 average, signaling improved technical momentum.
• Analyst sentiment is broadly positive: 11 analysts rate the stock Buy, two Hold, and one Sell, resulting in a “Moderate Buy” consensus and an average price target of $89.25.
• The company’s latest quarter showed weaker fundamentals, with EPS of $0.40 missing the $0.56 estimate and revenue down 12.1% year over year; however, institutional investors own a substantial 94.73% of shares.

Shares of Louisiana-Pacific Corporation (NYSE:LPX - Get Free Report) passed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $75.34 and traded as high as $75.60. Louisiana-Pacific shares last traded at $75.4310, with a volume of 2,394,571 shares traded.

Analyst Ratings Changes

Several brokerages have weighed in on LPX. Weiss Ratings raised Louisiana-Pacific from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, September 2nd. Zacks Research upgraded shares of Louisiana-Pacific from a "strong sell" rating to a "hold" rating in a research report on Monday, October 5th. Truist Financial reduced their target price on shares of Louisiana-Pacific from $91.00 to $89.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Bank of America lowered their price target on shares of Louisiana-Pacific from $100.00 to $85.00 and set a "buy" rating for the company in a research report on Wednesday, October 14th. Finally, Wolfe Research assumed coverage on shares of Louisiana-Pacific in a research note on Thursday, September 10th. They set an "outperform" rating and a $90.00 price target for the company. Eleven equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Louisiana-Pacific presently has a consensus rating of "Moderate Buy" and a consensus target price of $89.25.

Louisiana-Pacific Price Performance

The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.67 and a current ratio of 3.22. The company has a 50-day moving average price of $68.52 and a 200-day moving average price of $75.34. The firm has a market capitalization of $5.27 billion, a P/E ratio of 95.48, a price-to-earnings-growth ratio of 5.45 and a beta of 1.63.

Louisiana-Pacific (NYSE:LPX - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The building manufacturing company reported $0.40 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 the consensus estimate of $667.31 million. Louisiana-Pacific had a net margin of 2.19% and a return on equity of 4.67%. The company's revenue for the quarter was down 12.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.99 EPS. On average, sell-side analysts predict that Louisiana-Pacific Corporation will post 1.13 earnings per share for the current year.

Institutional Trading of Louisiana-Pacific

Institutional investors and hedge funds have recently modified their holdings of the stock. CenterBook Partners LP increased its stake in Louisiana-Pacific by 4.8% during the 3rd quarter. CenterBook Partners LP now owns 17,068 shares of the building manufacturing company's stock worth $1,102,000 after purchasing an additional 776 shares in the last quarter. Putney Financial Group LLC bought a new position in Louisiana-Pacific in the third quarter valued at approximately $107,000. D.A. Davidson & CO. lifted its stake in Louisiana-Pacific by 0.9% in the third quarter. D.A. Davidson & CO. now owns 37,856 shares of the building manufacturing company's stock valued at $2,444,000 after buying an additional 354 shares in the last quarter. Signaturefd LLC lifted its stake in Louisiana-Pacific by 27.6% in the third quarter. Signaturefd LLC now owns 805 shares of the building manufacturing company's stock valued at $52,000 after buying an additional 174 shares in the last quarter. Finally, Simplicity Wealth LLC boosted its holdings in shares of Louisiana-Pacific by 58.2% in the third quarter. Simplicity Wealth LLC now owns 18,977 shares of the building manufacturing company's stock valued at $1,225,000 after buying an additional 6,979 shares during the period. 94.73% of the stock is owned by institutional investors.

About Louisiana-Pacific

Louisiana-Pacific Corporation NYSE: LPX is a manufacturer of building products used in residential, repair and remodeling, and outdoor construction. The company produces engineered wood products designed for use in structural framing, exterior siding, trim, and other building applications.

Its product portfolio includes LP SmartSide siding and trim, oriented strand board and other structural panel products, and solutions for outdoor buildings and construction projects. Louisiana-Pacific markets its products through building-material distributors, retailers, and specialty dealers.

Founded in 1972, Louisiana-Pacific is headquartered in Nashville, Tennessee.

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