LandBridge (NYSE:LB) Shares Gap Up – Time to Buy?

LandBridge Company LLC (NYSE:LB) shares gapped up prior to trading on Wednesday . The stock had previously closed at $70.36, but opened at $74.13. LandBridge shares last traded at $72.64, with a volume of 6,683 shares traded.

Wall Street Analyst Weigh In

LB has been the subject of several research reports. The Goldman Sachs Group set a $84.00 target price on LandBridge in a research note on Thursday, May 28th. Zacks Research cut shares of LandBridge from a “hold” rating to a “strong sell” rating in a research report on Tuesday, April 28th. Piper Sandler reissued a “neutral” rating and issued a $66.00 price target (up from $65.00) on shares of LandBridge in a report on Friday, May 8th. Wells Fargo & Company raised their price objective on shares of LandBridge from $90.00 to $92.00 and gave the company an “overweight” rating in a research report on Wednesday, March 18th. Finally, Barclays boosted their target price on shares of LandBridge from $57.00 to $75.00 and gave the stock an “equal weight” rating in a report on Friday, February 27th. Two analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $76.17.

LandBridge Stock Up 5.7%

The stock has a fifty day moving average of $69.70 and a 200-day moving average of $63.63. The firm has a market capitalization of $5.73 billion, a price-to-earnings ratio of 76.64 and a beta of 0.08. The company has a current ratio of 3.15, a quick ratio of 3.15 and a debt-to-equity ratio of 0.66.

LandBridge (NYSE:LB) last released its quarterly earnings results on Wednesday, May 6th. The company reported $0.11 earnings per share for the quarter, missing analysts’ consensus estimates of $0.55 by ($0.44). The company had revenue of $51.01 million during the quarter, compared to analyst estimates of $58.72 million. LandBridge had a net margin of 15.71% and a return on equity of 4.34%. The company’s revenue for the quarter was up 16.0% compared to the same quarter last year. During the same quarter last year, the business earned $0.37 EPS. As a group, sell-side analysts expect that LandBridge Company LLC will post 1.48 EPS for the current year.

LandBridge Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th will be issued a dividend of $0.12 per share. The ex-dividend date is Thursday, June 4th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.6%. LandBridge’s payout ratio is currently 49.48%.

LandBridge announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, February 25th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 1% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at LandBridge

In related news, Director Charles L. Watson sold 13,000 shares of the company’s stock in a transaction on Friday, March 6th. The stock was sold at an average price of $75.00, for a total transaction of $975,000.00. Following the transaction, the director directly owned 64,250 shares of the company’s stock, valued at approximately $4,818,750. The trade was a 16.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 70.42% of the company’s stock.

Hedge Funds Weigh In On LandBridge

Large investors have recently made changes to their positions in the business. NewEdge Advisors LLC lifted its position in shares of LandBridge by 110.6% in the second quarter. NewEdge Advisors LLC now owns 398 shares of the company’s stock worth $27,000 after purchasing an additional 209 shares in the last quarter. Kestra Advisory Services LLC purchased a new position in LandBridge during the fourth quarter valued at approximately $33,000. EverSource Wealth Advisors LLC increased its stake in LandBridge by 564.1% in the 1st quarter. EverSource Wealth Advisors LLC now owns 518 shares of the company’s stock valued at $36,000 after buying an additional 440 shares during the period. Quattro Advisors LLC purchased a new stake in LandBridge in the 4th quarter worth approximately $36,000. Finally, Galaxy Group Investments LLC purchased a new stake in LandBridge in the 4th quarter worth approximately $36,000.

About LandBridge

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.