Louisiana-Pacific Co. (NYSE:LPX) was the target of a significant drop in short interest in October. As of October 15th, there was short interest totalling 5,406,929 shares, a drop of 34.7% from the September 28th total of 8,274,735 shares. Approximately 3.8% of the shares of the stock are sold short. Based on an average trading volume of 3,279,993 shares, the short-interest ratio is currently 1.6 days.
A number of analysts recently weighed in on the stock. Seaport Global Securities assumed coverage on shares of Louisiana-Pacific in a report on Tuesday, October 23rd. They set a “buy” rating and a $31.00 target price for the company. ValuEngine cut shares of Louisiana-Pacific from a “hold” rating to a “sell” rating in a report on Wednesday, September 26th. BMO Capital Markets upgraded shares of Louisiana-Pacific from an “underperform” rating to a “market perform” rating and reduced their target price for the stock from $27.00 to $24.00 in a report on Monday, October 22nd. They noted that the move was a valuation call. Zacks Investment Research cut shares of Louisiana-Pacific from a “strong-buy” rating to a “hold” rating in a report on Friday, August 10th. Finally, Bank of America upgraded shares of Louisiana-Pacific from a “neutral” rating to a “buy” rating and set a $37.00 target price for the company in a report on Monday, July 16th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and five have given a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and a consensus price target of $32.13.
Shares of NYSE:LPX opened at $21.77 on Thursday. The company has a debt-to-equity ratio of 0.20, a current ratio of 5.68 and a quick ratio of 4.57. The company has a market capitalization of $3.06 billion, a P/E ratio of 9.34, a PEG ratio of 1.47 and a beta of 1.43. Louisiana-Pacific has a 52 week low of $20.89 and a 52 week high of $32.16.
Louisiana-Pacific announced that its Board of Directors has approved a stock buyback plan on Tuesday, August 7th that permits the company to repurchase $150.00 million in shares. This repurchase authorization permits the construction company to reacquire up to 3.7% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its shares are undervalued.
In related news, Director Lizanne C. Gottung sold 7,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 16th. The shares were sold at an average price of $29.25, for a total transaction of $204,750.00. Following the completion of the sale, the director now directly owns 18,115 shares in the company, valued at $529,863.75. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Neil Sherman sold 7,430 shares of the firm’s stock in a transaction that occurred on Wednesday, September 12th. The stock was sold at an average price of $31.74, for a total transaction of $235,828.20. Following the sale, the executive vice president now owns 51,708 shares of the company’s stock, valued at $1,641,211.92. The disclosure for this sale can be found here. Insiders sold 38,287 shares of company stock valued at $1,180,736 over the last quarter. Insiders own 0.50% of the company’s stock.
Several large investors have recently modified their holdings of the stock. BlackRock Inc. lifted its position in shares of Louisiana-Pacific by 6.5% in the 2nd quarter. BlackRock Inc. now owns 18,429,014 shares of the construction company’s stock valued at $501,638,000 after acquiring an additional 1,122,642 shares in the last quarter. Bank of New York Mellon Corp lifted its position in shares of Louisiana-Pacific by 7.7% in the 2nd quarter. Bank of New York Mellon Corp now owns 4,518,427 shares of the construction company’s stock valued at $122,991,000 after acquiring an additional 321,522 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Louisiana-Pacific by 0.9% in the 2nd quarter. Dimensional Fund Advisors LP now owns 4,285,042 shares of the construction company’s stock valued at $116,638,000 after acquiring an additional 39,544 shares in the last quarter. Acadian Asset Management LLC lifted its position in Louisiana-Pacific by 27.8% in the 2nd quarter. Acadian Asset Management LLC now owns 2,860,671 shares of the construction company’s stock worth $77,868,000 after buying an additional 623,093 shares in the last quarter. Finally, MERIAN GLOBAL INVESTORS UK Ltd lifted its position in Louisiana-Pacific by 34.4% in the 3rd quarter. MERIAN GLOBAL INVESTORS UK Ltd now owns 2,606,707 shares of the construction company’s stock worth $69,051,000 after buying an additional 667,019 shares in the last quarter. Institutional investors and hedge funds own 92.56% 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 structures, as well as 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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