Live Oak Bancshares (NYSE:LOB) Shares Gap Down – Here’s Why

Live Oak Bancshares, Inc. (NYSE:LOB)’s share price gapped down before the market opened on Monday . The stock had previously closed at $43.69, but opened at $42.21. Live Oak Bancshares shares last traded at $42.0580, with a volume of 8,283 shares traded.

Wall Street Analyst Weigh In

Several research firms have recently commented on LOB. Cantor Fitzgerald raised their target price on shares of Live Oak Bancshares from $41.00 to $44.00 and gave the stock a “neutral” rating in a research note on Wednesday. Piper Sandler boosted their price target on shares of Live Oak Bancshares from $40.00 to $41.00 and gave the stock a “neutral” rating in a research note on Monday, April 27th. Keefe, Bruyette & Woods cut their price target on shares of Live Oak Bancshares from $44.00 to $42.00 and set an “outperform” rating for the company in a report on Friday, April 24th. TD Cowen reduced their price objective on shares of Live Oak Bancshares from $51.00 to $47.00 and set a “buy” rating for the company in a research report on Monday, April 27th. Finally, Weiss Ratings upgraded shares of Live Oak Bancshares from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, June 23rd. Two research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $44.80.

Live Oak Bancshares Stock Down 0.7%

The stock has a fifty day moving average of $38.94 and a two-hundred day moving average of $37.48. The stock has a market cap of $1.95 billion, a price-to-earnings ratio of 16.17 and a beta of 1.88.

Live Oak Bancshares (NYSE:LOB) last released its earnings results on Wednesday, April 22nd. The company reported $0.60 EPS for the quarter, beating analysts’ consensus estimates of $0.54 by $0.06. Live Oak Bancshares had a return on equity of 11.18% and a net margin of 11.79%.The company had revenue of $145.47 million during the quarter, compared to the consensus estimate of $146.02 million. On average, research analysts expect that Live Oak Bancshares, Inc. will post 2.97 EPS for the current year.

Live Oak Bancshares Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Tuesday, June 2nd were issued a $0.03 dividend. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date was Tuesday, June 2nd. Live Oak Bancshares’s dividend payout ratio (DPR) is currently 4.60%.

Insider Transactions at Live Oak Bancshares

In related news, Director William L. Williams III sold 8,400 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $41.61, for a total value of $349,524.00. Following the completion of the sale, the director owned 1,122,526 shares in the company, valued at $46,708,306.86. This trade represents a 0.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Renato Derraik sold 75,000 shares of the business’s stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $37.83, for a total transaction of $2,837,250.00. Following the sale, the insider directly owned 4,243 shares in the company, valued at approximately $160,512.69. This represents a 94.65% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 91,800 shares of company stock valued at $3,523,194 in the last quarter. Insiders own 22.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Royal Bank of Canada boosted its stake in shares of Live Oak Bancshares by 53.3% during the 1st quarter. Royal Bank of Canada now owns 75,125 shares of the company’s stock worth $2,484,000 after acquiring an additional 26,116 shares in the last quarter. Empowered Funds LLC increased its stake in Live Oak Bancshares by 3.5% in the 1st quarter. Empowered Funds LLC now owns 89,188 shares of the company’s stock valued at $2,949,000 after purchasing an additional 3,038 shares in the last quarter. Quantinno Capital Management LP raised its holdings in Live Oak Bancshares by 53.2% during the first quarter. Quantinno Capital Management LP now owns 29,691 shares of the company’s stock worth $982,000 after purchasing an additional 10,305 shares during the last quarter. Sei Investments Co. raised its holdings in Live Oak Bancshares by 4.5% during the first quarter. Sei Investments Co. now owns 41,124 shares of the company’s stock worth $1,360,000 after purchasing an additional 1,770 shares during the last quarter. Finally, Southernsun Asset Management LLC raised its holdings in Live Oak Bancshares by 0.4% during the first quarter. Southernsun Asset Management LLC now owns 1,033,539 shares of the company’s stock worth $34,179,000 after purchasing an additional 4,431 shares during the last quarter. 63.95% of the stock is owned by hedge funds and other institutional investors.

About Live Oak Bancshares

Live Oak Bancshares, Inc is a bank holding company headquartered in Wilmington, North Carolina, and operates through its subsidiary Live Oak Banking Company. Founded in 2008, the company leverages a branchless, technology-driven platform to deliver specialty lending and deposit products across the United States. Live Oak Bancshares completed its initial public offering in February 2018 and trades on the NYSE under the ticker symbol LOB.

The company’s primary focus is on originating and servicing commercial loans for small businesses in select industry verticals.