Live Oak Bancshares (NYSE:LOB) Stock Price Down 7.2% – Should You Sell?

Shares of Live Oak Bancshares, Inc. (NYSE:LOB) dropped 7.2% on Wednesday. The stock traded as low as $33.88 and last traded at $33.85. Approximately 201,174 shares changed hands during trading, a decline of 25% from the average daily volume of 267,718 shares. The stock had previously closed at $36.49.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on LOB. Piper Sandler reduced their price target on shares of Live Oak Bancshares from $46.00 to $38.00 and set a “neutral” rating on the stock in a research note on Wednesday. Cantor Fitzgerald lifted their target price on shares of Live Oak Bancshares from $44.00 to $45.00 and gave the company a “neutral” rating in a report on Wednesday, August 19th. Zacks Research lowered Live Oak Bancshares from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 31st. TD Cowen decreased their price target on Live Oak Bancshares from $49.00 to $44.00 and set a “buy” rating on the stock in a research note on Monday. Finally, Keefe, Bruyette & Woods raised their price target on Live Oak Bancshares from $45.00 to $47.00 and gave the stock an “outperform” rating in a research report on Friday, July 24th. Two equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Live Oak Bancshares currently has a consensus rating of “Hold” and an average target price of $43.50.

Live Oak Bancshares Stock Up 0.2%

The company’s 50-day moving average price is $39.61 and its 200-day moving average price is $38.60. The firm has a market cap of $1.60 billion, a price-to-earnings ratio of 12.20 and a beta of 1.94.

Live Oak Bancshares (NYSE:LOB) last announced its earnings results on Wednesday, July 22nd. The company reported $0.74 earnings per share for the quarter, topping the consensus estimate of $0.64 by $0.10. The firm had revenue of $156.15 million for the quarter. Live Oak Bancshares had a net margin of 12.68% and a return on equity of 11.77%. On average, sell-side analysts predict that Live Oak Bancshares, Inc. will post 2.96 earnings per share for the current fiscal year.

Live Oak Bancshares Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were given a dividend of $0.03 per share. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.3%. Live Oak Bancshares’s dividend payout ratio is currently 4.23%.

Insider Buying and Selling

In related news, Director Willam Williams, III sold 6,590 shares of Live Oak Bancshares stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $40.09, for a total value of $264,193.10. Following the completion of the transaction, the director directly owned 1,105,726 shares in the company, valued at approximately $44,328,555.34. This trade represents a 0.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Tonya Bradford sold 1,600 shares of the business’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $39.89, for a total value of $63,824.00. Following the transaction, the director directly owned 8,043 shares of the company’s stock, valued at $320,835.27. The trade was a 16.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 29,654 shares of company stock valued at $1,240,814 in the last three months. 22.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Live Oak Bancshares

A number of institutional investors and hedge funds have recently made changes to their positions in LOB. Versant Capital Management Inc raised its holdings in Live Oak Bancshares by 98.9% in the third quarter. Versant Capital Management Inc now owns 2,080 shares of the company’s stock valued at $75,000 after acquiring an additional 1,034 shares in the last quarter. Engineers Gate Manager LP increased its position in shares of Live Oak Bancshares by 26.4% in the 2nd quarter. Engineers Gate Manager LP now owns 15,215 shares of the company’s stock valued at $621,000 after purchasing an additional 3,180 shares during the last quarter. Benjamin Edwards Inc. raised its holdings in shares of Live Oak Bancshares by 3.1% in the 2nd quarter. Benjamin Edwards Inc. now owns 16,857 shares of the company’s stock valued at $688,000 after purchasing an additional 499 shares in the last quarter. Hsbc Holdings PLC acquired a new stake in shares of Live Oak Bancshares in the 2nd quarter valued at $326,000. Finally, Empowered Funds LLC purchased a new stake in shares of Live Oak Bancshares during the 2nd quarter worth $3,643,000. 63.95% of the stock is owned by institutional investors and hedge funds.

Live Oak Bancshares Company Profile

Live Oak Bancshares, Inc is a financial holding company headquartered in Wilmington, North Carolina. Through its principal subsidiary, Live Oak Bank, the company provides banking and financial services to small and middle-market businesses, professionals, entrepreneurs and individuals.

Live Oak Bank is known for its specialized lending model, including Small Business Administration (SBA) loans and financing for businesses in industries such as veterinary medicine, healthcare, agriculture, investment advisory and government contracting.