Live Oak Bancshares, Inc. (NASDAQ:LOB) Receives Consensus Recommendation of “Moderate Buy” from Brokerages
Live Oak Bancshares, Inc. (NASDAQ:LOB) has garnered an average recommendation of “Moderate Buy” from four brokerages currently covering the stock. According to Marketbeat Ratings, two investment analysts have issued a hold recommendation, while the remaining two have assigned buy ratings for the stock. The average one-year target price among analysts who have updated their coverage over the past year stands at $48.75.
In recent updates from research firms, Truist Financial raised their price objective for Live Oak Bancshares from $51.00 to $57.00, granting the stock a “buy” rating. This was reported in a research note dated September 20th. Additionally, Piper Sandler increased their price target from $36.00 to $46.00 while providing a “neutral” rating in a report issued on July 29th. Furthermore, Keefe, Bruyette & Woods reiterated a “market perform” rating and shifted their price target from $40.00 to $47.00 in a note released on July 26th. On June 27th, JPMorgan Chase & Co. modified their price objective, reducing it from $46.00 to $45.00, while maintaining an “overweight” rating on the stock.
In related news, Chief Accounting Officer John W. Sutherland sold 20,000 shares of Live Oak Bancshares on August 23rd at an average price of $43.00, amounting to a total transaction value of $860,000. Following this sale, Sutherland now owns 26,603 shares in the company, valued at approximately $1,143,929. This sale represents a negligible decrease in his position. The details regarding this transaction were disclosed in a filing with the Securities & Exchange Commission, indicating that corporate insiders own about 23.90% of the stock.
Several large investors have adjusted their stakes in Live Oak Bancshares. Capital International Investors acquired a new stake worth approximately $18,628,000 in the first quarter. Conversely, Blue Trust Inc. significantly boosted its holdings in the second quarter, increasing its stake by 12,211.1%, resulting in ownership of 252,994 shares valued at $8,870,000 after acquiring an additional 250,939 shares. Envestnet Asset Management Inc. has also seen a substantial increase in its stake, up 432.0%, now owning 66,130 shares valued at $2,319,000. Dimensional Fund Advisors LP raised its position by 3.5% during the same quarter and now holds 1,402,516 shares worth $49,169,000. Jacobs Levy Equity Management Inc. also purchased a new position valued at approximately $1,350,000 in the first quarter. Overall, institutional investors and hedge funds hold about 63.95% of the stock.
Live Oak Bancshares shares opened at $47.25 on Friday. The stock has seen a 52-week low of $26.11 and a 52-week high of $50.57. With a market capitalization of $2.13 billion, the company has a price-to-earnings ratio of 21.58 and a beta of 1.60. The stock’s 50-day moving average stands at $43.63, while the 200-day moving average is at $39.13.
In its latest earnings release on July 24th, Live Oak Bancshares reported earnings of $0.59 per share for the quarter, exceeding the consensus estimate of $0.46 by $0.13. The bank achieved a net margin of 11.22% and a return on equity of 10.93%. The revenue for the quarter was reported at $232.61 million, significantly higher than analyst estimates of $123.08 million. In the same quarter last year, the bank earned $0.39 per share. Analysts forecast that Live Oak Bancshares will post earnings of $2.31 per share for the current fiscal year.
The company also announced a quarterly dividend, which was paid on September 17th. Investors who were on record as of September 3rd received a dividend of $0.03 per share. This translates to an annualized dividend of $0.12, representing a yield of 0.25%. The current dividend payout ratio stands at 5.48%.
Live Oak Bancshares, Inc. functions as the bank holding company for Live Oak Banking Company, offering a wide range of banking products and services across the United States. The company operates through two segments: Banking and Fintech. Live Oak Bancshares accepts a variety of deposits, including non-interest-bearing demand deposits, interest-bearing checking, money market accounts, savings accounts, and time deposits.
In summary, while Live Oak Bancshares continues to earn a favorable rating among analysts, it faces competition from other stocks that may present more attractive investment opportunities.
