Louisiana-Pacific (NYSE:LPX) Shares Down 6.3% – Here’s Why

Louisiana-Pacific Corporation (NYSE:LPX)’s stock price dropped 6.3% during trading on Wednesday . The company traded as low as $79.96 and last traded at $79.7110. Approximately 748,717 shares traded hands during trading, an increase of 4% from the average daily volume of 720,505 shares. The stock had previously closed at $85.11.

Wall Street Analyst Weigh In

Several brokerages have recently commented on LPX. Weiss Ratings reissued a “hold (c-)” rating on shares of Louisiana-Pacific in a report on Monday, December 29th. DA Davidson reiterated a “buy” rating and set a $117.00 target price on shares of Louisiana-Pacific in a research report on Thursday, November 20th. TD Securities cut their price target on shares of Louisiana-Pacific from $97.00 to $91.00 and set a “hold” rating on the stock in a research note on Thursday, November 6th. Barclays began coverage on Louisiana-Pacific in a report on Monday, December 8th. They issued an “overweight” rating and a $100.00 price target on the stock. Finally, Royal Bank Of Canada decreased their price objective on Louisiana-Pacific from $114.00 to $104.00 and set an “outperform” rating for the company in a report on Thursday, November 6th. Six research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $105.43.

Louisiana-Pacific Trading Down 6.8%

The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.72 and a current ratio of 2.93. The firm has a fifty day moving average price of $81.76 and a 200 day moving average price of $88.20. The company has a market cap of $5.52 billion, a price-to-earnings ratio of 25.67 and a beta of 1.80.

Louisiana-Pacific (NYSE:LPX) last posted its quarterly earnings results on Wednesday, November 5th. The building manufacturing company reported $0.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.37 by ($0.01). Louisiana-Pacific had a return on equity of 14.90% and a net margin of 7.69%.The firm had revenue of $663.00 million for the quarter, compared to the consensus estimate of $670.26 million. During the same period last year, the company posted $1.22 earnings per share. The business’s revenue was down 8.2% compared to the same quarter last year. As a group, equities analysts predict that Louisiana-Pacific Corporation will post 5.27 EPS for the current fiscal year.

Louisiana-Pacific Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, November 21st. Investors of record on Friday, November 14th were issued a dividend of $0.28 per share. The ex-dividend date was Friday, November 14th. This represents a $1.12 dividend on an annualized basis and a yield of 1.4%. Louisiana-Pacific’s dividend payout ratio (DPR) is presently 36.25%.

Insider Buying and Selling

In other Louisiana-Pacific news, Director Stephen E. Macadam acquired 3,200 shares of the company’s stock in a transaction on Friday, November 7th. The shares were purchased at an average price of $78.06 per share, for a total transaction of $249,792.00. Following the completion of the purchase, the director directly owned 41,149 shares of the company’s stock, valued at approximately $3,212,090.94. This represents a 8.43% increase 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. Also, CEO William Bradley Southern sold 42,514 shares of the firm’s stock in a transaction that occurred on Monday, December 15th. The shares were sold at an average price of $86.25, for a total value of $3,666,832.50. Following the completion of the sale, the chief executive officer directly owned 559,908 shares of the company’s stock, valued at approximately $48,292,065. The trade was a 7.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.42% of the stock is owned by insiders.

Institutional Investors Weigh In On Louisiana-Pacific

Hedge funds and other institutional investors have recently modified their holdings of the company. Eminence Capital LP grew its stake in shares of Louisiana-Pacific by 7.9% in the third quarter. Eminence Capital LP now owns 3,115,959 shares of the building manufacturing company’s stock valued at $276,822,000 after acquiring an additional 228,521 shares in the last quarter. 59 North Capital Management LP raised its stake in Louisiana-Pacific by 7.2% in the 2nd quarter. 59 North Capital Management LP now owns 2,808,369 shares of the building manufacturing company’s stock worth $241,492,000 after purchasing an additional 189,726 shares in the last quarter. Valeo Financial Advisors LLC boosted its holdings in Louisiana-Pacific by 33,243.5% in the 2nd quarter. Valeo Financial Advisors LLC now owns 2,588,787 shares of the building manufacturing company’s stock valued at $222,610,000 after purchasing an additional 2,581,023 shares during the period. Dimensional Fund Advisors LP grew its position in shares of Louisiana-Pacific by 1.9% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,549,853 shares of the building manufacturing company’s stock worth $137,666,000 after purchasing an additional 28,535 shares in the last quarter. Finally, Boston Partners bought a new position in shares of Louisiana-Pacific during the third quarter worth approximately $100,770,000. Institutional investors and hedge funds own 94.73% of the company’s stock.

Louisiana-Pacific Company Profile

Louisiana-Pacific Corporation (NYSE: LPX) is a leading manufacturer of building materials and engineered wood products for residential, industrial and light commercial construction. The company produces a diverse portfolio of products, including oriented strand board (OSB), engineered wood siding, trim, molding, sheathing panels and subflooring. Its flagship product lines, such as LP® SmartSide® trim and siding, are designed to offer enhanced durability, moisture resistance and ease of installation, helping builders and homeowners achieve long-lasting performance in a variety of climates.

Founded in 1973 as a spin-off from Georgia-Pacific, Louisiana-Pacific established its reputation by pioneering innovative manufacturing techniques for OSB, becoming one of the first companies to bring the product to market in the 1980s.