Live Oak Bancshares, Inc. (NASDAQ:LOB) Sees Large Drop in Short Interest

Live Oak Bancshares, Inc. (NASDAQ:LOB) was the target of a significant decrease in short interest during the month of October. As of October 30th, there was short interest totalling 911,900 shares, a decrease of 23.4% from the October 15th total of 1,190,000 shares. Based on an average daily volume of 310,700 shares, the days-to-cover ratio is presently 2.9 days. Currently, 3.3% of the shares of the stock are short sold.

Several brokerages have issued reports on LOB. Raymond James upgraded shares of Live Oak Bancshares from an “outperform” rating to a “strong-buy” rating and lifted their price target for the company from $27.00 to $42.00 in a research note on Monday, October 26th. Zacks Investment Research raised shares of Live Oak Bancshares from a “hold” rating to a “strong-buy” rating and set a $39.00 target price for the company in a report on Wednesday, October 28th. ValuEngine downgraded shares of Live Oak Bancshares from a “buy” rating to a “hold” rating in a report on Monday, August 3rd. BidaskClub raised shares of Live Oak Bancshares from a “buy” rating to a “strong-buy” rating in a report on Friday, September 4th. Finally, Truist boosted their price objective on shares of Live Oak Bancshares from $28.00 to $43.00 in a report on Monday, October 26th. Two equities research analysts have rated the stock with a hold rating, one has issued a buy rating and three have given a strong buy rating to the stock. The stock currently has an average rating of “Buy” and a consensus target price of $54.20.

In other news, CEO James S. Mahan III purchased 57,153 shares of Live Oak Bancshares stock in a transaction dated Monday, August 24th. The shares were bought at an average cost of $19.79 per share, with a total value of $1,131,057.87. Also, CEO James S. Mahan III purchased 73,327 shares of Live Oak Bancshares stock in a transaction dated Thursday, August 27th. The shares were purchased at an average cost of $20.49 per share, for a total transaction of $1,502,470.23. Insiders have bought 242,404 shares of company stock worth $6,436,482 over the last three months. 25.10% of the stock is owned by insiders.

A number of large investors have recently modified their holdings of LOB. Fuller & Thaler Asset Management Inc. lifted its position in Live Oak Bancshares by 1.4% during the third quarter. Fuller & Thaler Asset Management Inc. now owns 20,101 shares of the bank’s stock valued at $509,000 after purchasing an additional 270 shares during the last quarter. Valeo Financial Advisors LLC boosted its holdings in shares of Live Oak Bancshares by 73.0% during the 3rd quarter. Valeo Financial Advisors LLC now owns 1,730 shares of the bank’s stock valued at $44,000 after buying an additional 730 shares in the last quarter. Federated Hermes Inc. bought a new stake in shares of Live Oak Bancshares during the 3rd quarter valued at $28,000. Diamond Hill Capital Management Inc. boosted its holdings in shares of Live Oak Bancshares by 0.6% during the 3rd quarter. Diamond Hill Capital Management Inc. now owns 219,822 shares of the bank’s stock valued at $5,568,000 after buying an additional 1,268 shares in the last quarter. Finally, Aperio Group LLC boosted its holdings in shares of Live Oak Bancshares by 9.3% during the 3rd quarter. Aperio Group LLC now owns 16,261 shares of the bank’s stock valued at $412,000 after buying an additional 1,382 shares in the last quarter. Hedge funds and other institutional investors own 43.01% of the company’s stock.

NASDAQ LOB traded down $0.37 on Friday, hitting $43.73. 587,687 shares of the company were exchanged, compared to its average volume of 265,456. The stock has a fifty day moving average of $35.55 and a 200-day moving average of $21.86. Live Oak Bancshares has a 12 month low of $7.57 and a 12 month high of $47.50. The company has a market cap of $1.78 billion, a PE ratio of 49.69 and a beta of 1.33.

Live Oak Bancshares (NASDAQ:LOB) last announced its earnings results on Wednesday, October 21st. The bank reported $0.83 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.27 by $0.56. The company had revenue of $98.41 million during the quarter, compared to the consensus estimate of $69.88 million. Live Oak Bancshares had a net margin of 10.11% and a return on equity of 6.98%. As a group, research analysts anticipate that Live Oak Bancshares will post 1.27 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be given a dividend of $0.03 per share. The ex-dividend date of this dividend is Monday, November 30th. This represents a $0.12 dividend on an annualized basis and a yield of 0.27%. Live Oak Bancshares’s dividend payout ratio is presently 27.27%.

Live Oak Bancshares Company Profile

Live Oak Bancshares, Inc operates as the bank holding company for Live Oak Banking Company that provides various commercial banking products and services to individuals, small businesses, and professionals in North Carolina, the United States. The company accepts various deposit products, including noninterest-bearing demand, as well as interest-bearing checking, money market, savings, and time deposits.

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