John W. Sutherland, the Chief Accounting Officer of Live Oak Bancshares, Inc. (NASDAQ:NYSE:LOB), has recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Sutherland sold 12,588 shares of voting common stock on November 13, at an average price of approximately $49.00 per share. This transaction amounts to a total value of $616,837.
Following the sale, Sutherland retains ownership of 14,015 shares of the company's stock. The filing also indicates that Sutherland holds various restricted stock units and employee stock options, which represent additional potential ownership in Live Oak Bancshares.
In other recent news, Live Oak Bancshares showcased robust Q3 2024 earnings, with an 18% quarter-over-quarter increase in adjusted pre-provision net revenue (PPNR), driven by a 10% rise in revenues and controlled cost growth. Record loan production of $1.8 billion, a 50% increase from previous highs, was primarily due to small business banking and commercial lending. Deposits also saw a 7% quarter-over-quarter growth, stimulated by the introduction of a new operating account and a focus on strengthening business relationships. Despite these positive outcomes, Truist Securities revised its outlook for Live Oak Bancshares, reducing the price target to $46.00 while sustaining a Buy rating. This adjustment followed the third quarter PPNR surpassing expectations, prompting changes in the earnings per share (EPS) forecasts for the years 2024 and 2025. Similarly, Piper Sandler adjusted its stance on Live Oak Bancshares shares, reducing the bank's price target from $50.00 to $44.00 while maintaining a Neutral rating. This adjustment followed an unexpected rise in the bank's provision for credit losses, which resulted in earnings falling short of expectations. Despite these mixed results, Live Oak Bancshares anticipates continued growth and potential benefits from a softer economic landing and lower interest rates in the future.
InvestingPro Insights
In light of John W. Sutherland's recent stock sale, it's worth examining Live Oak Bancshares' current financial position and market performance. According to InvestingPro data, the company's stock has shown strong momentum, with a 20.8% price return over the last three months and an impressive 33.81% return over the past six months. This upward trend aligns with an InvestingPro Tip indicating a "Strong return over the last three months."
Despite the recent insider sale, Live Oak Bancshares maintains a relatively attractive valuation. The company's P/E ratio stands at 26.16, while its PEG ratio is a low 0.25, suggesting it may be undervalued relative to its growth potential. This is further supported by an InvestingPro Tip noting that the company is "Trading at a low P/E ratio relative to near-term earnings growth."
For investors considering Live Oak Bancshares, it's noteworthy that the company has maintained dividend payments for 10 consecutive years, as highlighted by another InvestingPro Tip. This consistent dividend history may be appealing to income-focused investors, although the current dividend yield is modest at 0.25%.
InvestingPro offers additional insights, with 10 more tips available for subscribers looking to deepen their analysis of Live Oak Bancshares. These tips could provide valuable context for understanding the recent insider transaction and the company's overall financial health.
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