Live Oak Bancshares (NASDAQ:LOB) Stock Price Down 7.4% on Disappointing Earnings

Live Oak Bancshares, Inc. (NASDAQ:LOB) were down 7.4% on Thursday after the company announced weaker than expected quarterly earnings. The stock 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.

The bank reported $0.28 EPS for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.25). Live Oak Bancshares had a return on equity of 10.93% and a net margin of 11.22%. The business had revenue of $241.87 million during the quarter, compared to analyst estimates of $126.63 million. During the same period in the prior year, the firm posted $0.88 EPS.

Live Oak Bancshares Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 17th. Shareholders of record on Tuesday, September 3rd were issued a dividend of $0.03 per share. This represents a $0.12 annualized dividend and a yield of 0.30%. The ex-dividend date of this dividend was Tuesday, September 3rd. Live Oak Bancshares’s dividend payout ratio is 5.48%.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. Keefe, Bruyette & Woods reissued a “market perform” rating and issued a $47.00 target price (up from $40.00) on shares of Live Oak Bancshares in a research note on Friday, July 26th. Truist Financial lifted 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, Piper Sandler cut their target price on shares of Live Oak Bancshares from $50.00 to $44.00 and set a “neutral” rating on the stock in a research report on Friday. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and two have assigned a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $48.25.

Insider Activity at Live Oak Bancshares

In other Live Oak Bancshares news, CAO John W. Sutherland sold 20,000 shares of the stock in a transaction on Friday, August 23rd. The shares were sold at an average price of $43.00, for a total value of $860,000.00. Following the sale, the chief accounting officer now directly owns 26,603 shares in the company, valued at approximately $1,143,929. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 23.90% of the company’s stock.

Institutional Investors Weigh In On Live Oak Bancshares

Several large investors have recently modified their holdings of the business. Capital International Investors bought a new stake in shares of Live Oak Bancshares during the first quarter worth $18,628,000. abrdn plc acquired a new position in Live Oak Bancshares in the 3rd quarter worth $14,501,000. Blue Trust Inc. increased its holdings in Live Oak Bancshares by 12,211.1% during the 2nd quarter. Blue Trust Inc. now owns 252,994 shares of the bank’s stock worth $8,870,000 after purchasing an additional 250,939 shares in the last quarter. Envestnet Asset Management Inc. raised its stake in shares of Live Oak Bancshares by 432.0% in the 2nd quarter. Envestnet Asset Management Inc. now owns 66,130 shares of the bank’s stock valued at $2,319,000 after purchasing an additional 53,700 shares during the period. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of Live Oak Bancshares by 3.5% in the second quarter. Dimensional Fund Advisors LP now owns 1,402,516 shares of the bank’s stock valued at $49,169,000 after purchasing an additional 48,018 shares in the last quarter. 63.95% of the stock is currently owned by institutional investors.

Live Oak Bancshares Price Performance

The company has a market capitalization of $1.78 billion, a price-to-earnings ratio of 18.08 and a beta of 1.60. The firm has a 50-day moving average price of $45.11 and a two-hundred day moving average price of $39.58.

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.