Zacks Research Downgrades LandBridge (NYSE:LB) to Strong Sell

Key Points

• Zacks Research downgraded LandBridge (NYSE:LB) from a "hold" to a "strong sell", while MarketBeat shows a consensus rating of "Hold" with an average price target of $76.
• Shares opened at $68.71 and trade in a 52‑week range of $43.75–$87.60, the company has a market cap of $5.30B and a P/E of 73.1, and the board approved a $50M buyback (about 1% of shares).
• Insiders sold 53,350 shares in the last 90 days (including Director Charles L. Watson's 30,680‑share sale) though insiders still own 70.42%, and institutions like First Manhattan materially increased positions.

LandBridge (NYSE:LB - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Tuesday,Zacks.com reports.

A number of other analysts have also recently weighed in on LB. Wells Fargo & Company boosted their price target on LandBridge from $90.00 to $92.00 and gave the stock an "overweight" rating in a research report on Wednesday, March 18th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of LandBridge in a research report on Wednesday, April 8th. Barclays boosted their price target on LandBridge from $57.00 to $75.00 and gave the stock an "equal weight" rating in a research report on Friday, February 27th. Finally, The Goldman Sachs Group boosted their price target on LandBridge from $69.00 to $84.00 and gave the stock a "buy" rating in a research report on Friday, March 13th. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, LandBridge currently has a consensus rating of "Hold" and an average price target of $76.00.

LandBridge Price Performance

Shares of NYSE:LB opened at $68.71 on Tuesday. LandBridge has a fifty-two week low of $43.75 and a fifty-two week high of $87.60. The business has a 50-day moving average of $70.18 and a two-hundred day moving average of $62.06. The stock has a market capitalization of $5.30 billion, a P/E ratio of 73.10 and a beta of 0.54. The company has a debt-to-equity ratio of 0.70, a current ratio of 4.87 and a quick ratio of 4.87.

LandBridge declared that its board has approved a share repurchase program on Wednesday, February 25th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 1% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's board believes its stock is undervalued.

Insider Activity at LandBridge

In other news, Director Charles L. Watson sold 30,680 shares of LandBridge stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $74.07, for a total value of $2,272,467.60. Following the transaction, the director directly owned 86,920 shares in the company, valued at approximately $6,438,164.40. The trade was a 26.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders sold 53,350 shares of company stock valued at $3,974,555 in the last 90 days. Insiders own 70.42% of the company's stock.

Hedge Funds Weigh In On LandBridge

A number of institutional investors have recently made changes to their positions in LB. First Manhattan CO. LLC. increased its stake in shares of LandBridge by 24.0% in the fourth quarter. First Manhattan CO. LLC. now owns 6,861,939 shares of the company's stock worth $338,714,000 after purchasing an additional 1,330,099 shares during the period. William Blair Investment Management LLC bought a new position in shares of LandBridge in the fourth quarter worth about $33,817,000. DF Dent & Co. Inc. bought a new position in shares of LandBridge in the fourth quarter worth about $21,506,000. Cortland Associates Inc. MO increased its stake in shares of LandBridge by 172.0% in the third quarter. Cortland Associates Inc. MO now owns 412,443 shares of the company's stock worth $22,004,000 after purchasing an additional 260,812 shares during the period. Finally, Goldman Sachs Group Inc. increased its stake in shares of LandBridge by 1,957.2% in the fourth quarter. Goldman Sachs Group Inc. now owns 214,771 shares of the company's stock worth $10,522,000 after purchasing an additional 204,331 shares during the period.

LandBridge Company Profile

LandBridge Company LLC owns and manages land and resources to support and enhance oil and natural gas development in the United States. It owns surface acres in and around the Delaware Basin in Texas and New Mexico. The company holds a portfolio of oil and gas royalties. It also sells brackish water and other surface composite materials. The company was founded in 2021 and is based in Houston, Texas. LandBridge Company LLC operates as a subsidiary of LandBridge Holdings LLC.

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