Louisiana-Pacific (NYSE:LPX) Hits New 12-Month Low Following Weak Earnings

Louisiana-Pacific Corporation (NYSE:LPX)’s stock price reached a new 52-week low on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $78.03 and last traded at $78.39, with a volume of 3348031 shares. The stock had previously closed at $85.33.

The building manufacturing company reported $0.36 EPS for the quarter, missing analysts’ consensus estimates of $0.37 by ($0.01). The company had revenue of $663.00 million for the quarter, compared to analyst estimates of $670.26 million. Louisiana-Pacific had a net margin of 10.34% and a return on equity of 18.67%. Louisiana-Pacific’s quarterly revenue was down 8.2% compared to the same quarter last year. During the same quarter last year, the company posted $1.22 EPS.

Louisiana-Pacific Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 21st. Shareholders of record on Friday, November 14th will be issued a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Friday, November 14th. Louisiana-Pacific’s dividend payout ratio is 26.42%.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the company. Wall Street Zen cut Louisiana-Pacific from a “hold” rating to a “sell” rating in a report on Sunday, August 3rd. Vertical Research initiated coverage on Louisiana-Pacific in a report on Monday, October 20th. They set a “buy” rating on the stock. Truist Financial cut their target price on Louisiana-Pacific from $111.00 to $108.00 and set a “buy” rating on the stock in a research report on Friday, July 11th. Zacks Research raised Louisiana-Pacific from a “strong sell” rating to a “hold” rating in a research report on Friday, October 10th. Finally, DA Davidson reissued a “buy” rating and issued a $117.00 price objective on shares of Louisiana-Pacific in a research report on Thursday, September 25th. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $110.57.

Insiders Place Their Bets

In other Louisiana-Pacific news, Director Ozey K. Horton, Jr. sold 500 shares of the company’s stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $101.00, for a total value of $50,500.00. Following the completion of the sale, the director directly owned 29,728 shares in the company, valued at $3,002,528. This represents a 1.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.42% of the stock is owned by company insiders.

Institutional Investors Weigh In On Louisiana-Pacific

A number of institutional investors and hedge funds have recently modified their holdings of LPX. Valeo Financial Advisors LLC boosted its holdings in Louisiana-Pacific by 33,243.5% in the second quarter. Valeo Financial Advisors LLC now owns 2,588,787 shares of the building manufacturing company’s stock worth $222,610,000 after purchasing an additional 2,581,023 shares in the last quarter. Eminence Capital LP boosted its holdings in Louisiana-Pacific by 72.3% during the second quarter. Eminence Capital LP now owns 2,887,438 shares of the building manufacturing company’s stock valued at $248,291,000 after acquiring an additional 1,211,495 shares during the period. Norges Bank bought a new stake in Louisiana-Pacific during the second quarter valued at about $72,299,000. 59 North Capital Management LP boosted its holdings in Louisiana-Pacific by 32.1% during the first quarter. 59 North Capital Management LP now owns 2,618,643 shares of the building manufacturing company’s stock valued at $240,863,000 after acquiring an additional 635,817 shares during the period. Finally, Palestra Capital Management LLC boosted its holdings in Louisiana-Pacific by 173.5% during the first quarter. Palestra Capital Management LLC now owns 911,621 shares of the building manufacturing company’s stock valued at $83,851,000 after acquiring an additional 578,248 shares during the period. Institutional investors and hedge funds own 94.73% of the company’s stock.

Louisiana-Pacific Price Performance

The company has a debt-to-equity ratio of 0.20, a current ratio of 2.84 and a quick ratio of 1.67. The stock’s fifty day simple moving average is $91.15 and its 200-day simple moving average is $90.93. The company has a market capitalization of $5.46 billion, a P/E ratio of 18.49 and a beta of 1.80.

About Louisiana-Pacific

Louisiana-Pacific Corporation, together with its subsidiaries, provides building solutions primarily for use in new home construction, repair and remodeling, and outdoor structure markets. It operates through Siding, Oriented Strand Board, LP South America, and Other segments. The Siding segment offers LP SmartSide trim and siding products, LP SmartSide ExpertFinish trim and siding products, LP BuilderSeries lap siding products, and LP Outdoor Building Solutions; and engineered wood siding, trim, soffit, and fascia products.