Louisiana-Pacific (LPX) Upgraded by Zacks Investment Research to “Hold”
According to Zacks, “Louisiana-Pacific reported lackluster results in first-quarter 2019, wherein both earnings and revenues missed analyst’s expectation by 18.8% and 2%, respectively. Also, its top and bottom lines deceased 15.8% and 79.4%, respectively, on a year-over-year basis. Lower OSB prices and softness in EWP sales negatively impacted its top-line performance. While macro environment headwinds, and higher cost and expenses impacted its bottom line. Gross margin declined significantly to 13.9% in the quarter from 25.6% a year ago owing to increased raw material costs, lower volumes in EWP and the Dawson Creek mill conversion. Shares of Louisiana-Pacific have underperformed its industry so far this year. Estimates for 2019 have also moved south over the past 30 days, depicting analyst’s concern over the stock.”
A number of other brokerages also recently weighed in on LPX. Stephens upgraded Louisiana-Pacific from an equal weight rating to an overweight rating and set a $32.00 target price on the stock in a report on Friday, April 5th. ValuEngine upgraded Louisiana-Pacific from a sell rating to a hold rating in a report on Wednesday, May 1st. Bank of America upgraded Louisiana-Pacific from a neutral rating to a buy rating and set a $24.75 target price on the stock in a report on Tuesday, April 30th. TD Securities upped their target price on Louisiana-Pacific from $25.00 to $29.00 and gave the company a hold rating in a report on Thursday, February 14th. Finally, Longbow Research upgraded Louisiana-Pacific from a neutral rating to a buy rating and set a $32.00 target price on the stock in a report on Monday, May 20th. Four investment analysts have rated the stock with a hold rating and four have given a buy rating to the company. The company has a consensus rating of Buy and a consensus price target of $28.68.
Louisiana-Pacific (NYSE:LPX) last issued its earnings results on Tuesday, May 7th. The building manufacturing company reported $0.13 earnings per share for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.03). The business had revenue of $582.00 million during the quarter, compared to analyst estimates of $601.49 million. Louisiana-Pacific had a net margin of 12.16% and a return on equity of 19.63%. Louisiana-Pacific’s revenue for the quarter was down 15.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.63 EPS. On average, sell-side analysts expect that Louisiana-Pacific will post 1.59 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 3rd. Investors of record on Tuesday, May 21st will be issued a $0.135 dividend. The ex-dividend date is Monday, May 20th. This represents a $0.54 dividend on an annualized basis and a yield of 2.35%. Louisiana-Pacific’s dividend payout ratio is currently 19.71%.
In related news, Director Gary Cook sold 4,000 shares of the stock in a transaction that occurred on Thursday, March 14th. The stock was sold at an average price of $24.76, for a total value of $99,040.00. Following the transaction, the director now owns 52,139 shares in the company, valued at $1,290,961.64. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.40% of the company’s stock.
Large investors have recently added to or reduced their stakes in the stock. Lavaca Capital LLC acquired a new position in Louisiana-Pacific in the fourth quarter worth approximately $29,000. Valeo Financial Advisors LLC acquired a new position in Louisiana-Pacific in the first quarter worth approximately $45,000. Toronto Dominion Bank increased its holdings in Louisiana-Pacific by 28.5% in the fourth quarter. Toronto Dominion Bank now owns 2,570 shares of the building manufacturing company’s stock worth $57,000 after buying an additional 570 shares during the last quarter. Baker Ellis Asset Management LLC acquired a new position in Louisiana-Pacific in the first quarter worth approximately $134,000. Finally, Hollencrest Capital Management acquired a new position in Louisiana-Pacific during the first quarter valued at approximately $213,000. Hedge funds and other institutional investors own 98.88% of the company’s stock.
Louisiana-Pacific Corporation, together with its subsidiaries, manufactures building products primarily for use in new home construction, repair and remodeling, and outdoor structure markets. It also markets and sells products for use in light industrial and commercial construction applications. It operates through four segments: Siding; North America Oriented Strand Board (OSB); Engineered Wood Products; and South America.
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