Peeling Back The Layers: Exploring Live Oak Bancshares Through Analyst Insights
In the preceding three months, 4 analysts have released ratings for Live Oak Bancshares (NYSE:LOB), presenting a wide array of perspectives from bullish to bearish.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 0 | 1 | 0 | 0 |
| Last 30D | 1 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $43.0, a high estimate of $47.00, and a low estimate of $38.00. A 8.99% drop is evident in the current average compared to the previous average price target of $47.25.
Understanding Analyst Ratings: A Comprehensive Breakdown
In examining recent analyst actions, we gain insights into how financial experts perceive Live Oak Bancshares. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Brandon King | Truist Securities | Lowers | Buy | $38.00 | $47.00 |
| Timothy Switzer | Keefe, Bruyette & Woods | Lowers | Market Perform | $40.00 | $45.00 |
| Brandon King | Truist Securities | Maintains | Buy | $47.00 | $47.00 |
| Jennifer Demba | Truist Securities | Lowers | Buy | $47.00 | $50.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Live Oak Bancshares. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Live Oak Bancshares compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Live Oak Bancshares's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Live Oak Bancshares's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
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Delving into Live Oak Bancshares's Background
Live Oak Bancshares Inc operates as the bank holding company for the Live Oak Banking Company. The company specializes in lending and deposit-related services to small businesses nationwide. The company identifies and extends lending to credit-worthy borrowers both within specific industries, also called verticals, through expertise within those industries, and more broadly to select borrowers outside of those industries. A portion of the loans originated by the Bank are partially guaranteed by the Small Business Administration under the 7(a) Loan Program and the U.S. Department of Agriculture Rural Energy for America Program, Water and Environmental Program, Business and Industry and Community Facilities loan programs.
Unraveling the Financial Story of Live Oak Bancshares
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Positive Revenue Trend: Examining Live Oak Bancshares's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.8% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Live Oak Bancshares's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 15.98%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.84%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.15%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Live Oak Bancshares's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.03.
The Core of Analyst Ratings: What Every Investor Should Know
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.