LandBridge (NYSE:LB) Shares Up 7.3% – Here’s Why

LandBridge Company LLC (NYSE:LB)’s share price shot up 7.3% during trading on Tuesday . The company traded as high as $76.33 and last traded at $76.3350. 289,078 shares traded hands during trading, a decline of 45% from the average session volume of 525,506 shares. The stock had previously closed at $71.14.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on LB. Weiss Ratings reiterated a “hold (c)” rating on shares of LandBridge in a research note on Friday, January 9th. Wells Fargo & Company dropped their price objective on shares of LandBridge from $91.00 to $90.00 and set an “overweight” rating for the company in a report on Wednesday, November 26th. Zacks Research downgraded shares of LandBridge from a “strong-buy” rating to a “strong sell” rating in a research note on Friday, January 23rd. Barclays increased their target price on shares of LandBridge from $57.00 to $75.00 and gave the stock an “equal weight” rating in a report on Friday, February 27th. Finally, Raymond James Financial downgraded shares of LandBridge from a “moderate buy” rating to a “strong sell” rating in a research note on Friday, December 5th. Three analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, LandBridge has a consensus rating of “Hold” and an average price target of $75.67.

LandBridge Stock Performance

The company has a 50-day moving average of $62.26 and a 200-day moving average of $58.49. The firm has a market capitalization of $5.95 billion, a price-to-earnings ratio of 81.29 and a beta of 0.09. The company has a current ratio of 4.87, a quick ratio of 4.87 and a debt-to-equity ratio of 0.70.

LandBridge Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 19th. Investors of record on Thursday, March 5th will be paid a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 0.6%. This is a positive change from LandBridge’s previous quarterly dividend of $0.10. The ex-dividend date is Thursday, March 5th. LandBridge’s dividend payout ratio (DPR) is currently 51.06%.

LandBridge announced that its board has authorized a stock repurchase program on Wednesday, February 25th that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the company to buy up to 1% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Transactions at LandBridge

In related news, insider Harrison Fenner Bolling purchased 850 shares of the company’s stock in a transaction dated Monday, January 5th. The shares were acquired at an average cost of $46.84 per share, for a total transaction of $39,814.00. Following the transaction, the insider owned 66,874 shares of the company’s stock, valued at $3,132,378.16. This trade represents a 1.29% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Jason Thomas Long bought 2,143 shares of the business’s stock in a transaction on Monday, January 5th. The stock was bought at an average price of $46.59 per share, for a total transaction of $99,842.37. Following the completion of the purchase, the insider directly owned 223,546 shares of the company’s stock, valued at $10,415,008.14. The trade was a 0.97% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders have purchased 3,542 shares of company stock worth $164,630 and have sold 53,350 shares worth $3,974,555. Insiders own 70.42% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. NewEdge Advisors LLC raised its stake in shares of LandBridge by 110.6% during the second quarter. NewEdge Advisors LLC now owns 398 shares of the company’s stock valued at $27,000 after purchasing an additional 209 shares in the last quarter. Kestra Advisory Services LLC bought a new position in LandBridge in the 4th quarter valued at about $33,000. Quattro Advisors LLC acquired a new position in LandBridge during the 4th quarter valued at about $36,000. Galaxy Group Investments LLC acquired a new position in LandBridge during the 4th quarter valued at about $36,000. Finally, CIBC Private Wealth Group LLC bought a new stake in shares of LandBridge during the 4th quarter worth about $40,000.

LandBridge Company Profile

LandBridge Company LLC owns and manages land and resources to support and enhance oil and natural gas development in the United States. It owns surface acres in and around the Delaware Basin in Texas and New Mexico. The company holds a portfolio of oil and gas royalties. It also sells brackish water and other surface composite materials. The company was founded in 2021 and is based in Houston, Texas. LandBridge Company LLC operates as a subsidiary of LandBridge Holdings LLC.