LandBridge (NYSE:LB) Shares Gap Up – Here’s What Happened

LandBridge Company LLC (NYSE:LB)’s share price gapped up prior to trading on Wednesday . The stock had previously closed at $70.36, but opened at $74.13. LandBridge shares last traded at $72.64, with a volume of 6,683 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Barclays upped their price target on LandBridge from $57.00 to $75.00 and gave the company an “equal weight” rating in a research note on Friday, February 27th. Piper Sandler reaffirmed a “neutral” rating and issued a $66.00 price target (up from $65.00) on shares of LandBridge in a research note on Friday, May 8th. Wells Fargo & Company upped their price target on LandBridge from $90.00 to $92.00 and gave the company an “overweight” rating in a research note on Wednesday, March 18th. Zacks Research lowered LandBridge from a “hold” rating to a “strong sell” rating in a research note on Tuesday, April 28th. Finally, The Goldman Sachs Group set a $84.00 price target on LandBridge in a research note on Thursday, May 28th. Two equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, LandBridge currently has an average rating of “Hold” and a consensus price target of $76.17.

LandBridge Trading Down 1.8%

The company has a 50 day moving average of $69.89 and a 200-day moving average of $63.60. The company has a debt-to-equity ratio of 0.66, a quick ratio of 3.15 and a current ratio of 3.15. The stock has a market cap of $5.75 billion, a price-to-earnings ratio of 76.87 and a beta of 0.08.

LandBridge (NYSE:LB) last posted its earnings results on Wednesday, May 6th. The company reported $0.11 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.55 by ($0.44). LandBridge had a return on equity of 4.34% and a net margin of 15.71%.The firm had revenue of $51.01 million for the quarter, compared to analyst estimates of $58.72 million. During the same period in the previous year, the company posted $0.37 EPS. LandBridge’s revenue was up 16.0% on a year-over-year basis. On average, research analysts anticipate that LandBridge Company LLC will post 1.48 earnings per share for the current year.

LandBridge Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 18th. Investors of record on Thursday, June 4th will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $0.48 annualized dividend and a yield of 0.6%. LandBridge’s dividend payout ratio is presently 49.48%.

LandBridge declared that its board has initiated a stock buyback program on Wednesday, February 25th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 1% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s management believes its shares are undervalued.

Hedge Funds Weigh In On LandBridge

Hedge funds have recently bought and sold shares of the company. Royal Bank of Canada increased its holdings in LandBridge by 20.3% during the 1st quarter. Royal Bank of Canada now owns 27,008 shares of the company’s stock worth $1,944,000 after purchasing an additional 4,554 shares during the period. Empowered Funds LLC purchased a new stake in LandBridge during the 1st quarter worth about $494,000. Geode Capital Management LLC increased its holdings in LandBridge by 0.8% during the 2nd quarter. Geode Capital Management LLC now owns 28,971 shares of the company’s stock worth $1,958,000 after purchasing an additional 230 shares during the period. Cetera Investment Advisers purchased a new stake in LandBridge during the 2nd quarter worth about $218,000. Finally, Legal & General Group Plc increased its holdings in LandBridge by 27.3% during the 2nd quarter. Legal & General Group Plc now owns 16,114 shares of the company’s stock worth $1,089,000 after purchasing an additional 3,459 shares during the period.

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.