Live Oak Bancshares (NASDAQ:LOB) Trading Down 7.4% – Here’s Why

Live Oak Bancshares, Inc. (NASDAQ:LOB)’s stock price dropped 7.4% during trading on Thursday . The company traded as low as $43.01 and last traded at $43.18. Approximately 56,770 shares were traded during mid-day trading, a decline of 68% from the average daily volume of 175,940 shares. The stock had previously closed at $46.64.

Analysts Set New Price Targets

LOB has been the subject of several recent analyst reports. Piper Sandler upped their price objective on shares of Live Oak Bancshares from $36.00 to $46.00 and gave the stock a “neutral” rating in a report on Monday, July 29th. Keefe, Bruyette & Woods reaffirmed a “market perform” rating and issued a $47.00 price target (up from $40.00) on shares of Live Oak Bancshares in a research report on Friday, July 26th. Truist Financial boosted their price objective on Live Oak Bancshares from $51.00 to $57.00 and gave the stock a “buy” rating in a research report on Friday, September 20th. Finally, JPMorgan Chase & Co. lowered their target price on Live Oak Bancshares from $46.00 to $45.00 and set an “overweight” rating on the stock in a report on Thursday, June 27th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and two have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $48.75.

Live Oak Bancshares Trading Down 8.5 %

The firm has a fifty day simple moving average of $45.10 and a 200 day simple moving average of $39.57. The stock has a market cap of $1.92 billion, a price-to-earnings ratio of 21.71 and a beta of 1.60.

Live Oak Bancshares (NASDAQ:LOB) last posted its quarterly earnings results on Wednesday, July 24th. The bank reported $0.59 earnings per share for the quarter, topping analysts’ consensus estimates of $0.46 by $0.13. Live Oak Bancshares had a net margin of 11.22% and a return on equity of 10.93%. The firm had revenue of $232.61 million for the quarter, compared to the consensus estimate of $123.08 million. During the same quarter in the previous year, the company earned $0.39 earnings per share. On average, equities analysts expect that Live Oak Bancshares, Inc. will post 2.31 earnings per share for the current year.

Live Oak Bancshares Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 17th. Stockholders of record on Tuesday, September 3rd were paid a $0.03 dividend. The ex-dividend date was Tuesday, September 3rd. This represents a $0.12 annualized dividend and a dividend yield of 0.28%. Live Oak Bancshares’s dividend payout ratio is presently 6.03%.

Insider Activity at Live Oak Bancshares

In related news, CAO John W. Sutherland sold 20,000 shares of the stock in a transaction that occurred on Friday, August 23rd. The stock was sold at an average price of $43.00, for a total transaction of $860,000.00. Following the sale, the chief accounting officer now directly owns 26,603 shares in the company, valued at $1,143,929. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 23.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. E. Ohman J or Asset Management AB raised its stake in shares of Live Oak Bancshares by 8.1% in the third quarter. E. Ohman J or Asset Management AB now owns 49,626 shares of the bank’s stock worth $2,351,000 after acquiring an additional 3,700 shares during the last quarter. Raymond James & Associates increased its holdings in shares of Live Oak Bancshares by 4.7% in the third quarter. Raymond James & Associates now owns 95,483 shares of the bank’s stock valued at $4,523,000 after purchasing an additional 4,271 shares in the last quarter. nVerses Capital LLC raised its position in Live Oak Bancshares by 87.5% in the 3rd quarter. nVerses Capital LLC now owns 1,500 shares of the bank’s stock worth $71,000 after purchasing an additional 700 shares during the last quarter. Creative Planning lifted its holdings in Live Oak Bancshares by 36.5% during the 3rd quarter. Creative Planning now owns 10,194 shares of the bank’s stock worth $483,000 after buying an additional 2,725 shares in the last quarter. Finally, Handelsbanken Fonder AB acquired a new position in Live Oak Bancshares during the 3rd quarter worth $265,000. Institutional investors and hedge funds own 63.95% of the company’s stock.

About Live Oak Bancshares

Live Oak Bancshares, Inc operates as the bank holding company for Live Oak Banking Company that provides various banking products and services in the United States. It operates through two segments, Banking and Fintech. The company accepts various deposit products, including noninterest-bearing demand, as well as interest-bearing checking, money market, savings, and time deposits.