WILMINGTON, NC—Seward Gregory W, the General Counsel of Live Oak Bancshares, Inc. (NASDAQ:NYSE:LOB), recently sold a significant portion of the company's voting common stock. According to a recent filing, Gregory sold a total of 10,000 shares on November 7, 2024. The shares were sold at prices ranging from $46.5865 to $47.3902, amounting to a total transaction value of $470,168.
Following these transactions, Gregory holds 86,882 shares of the company, maintaining a significant stake in Live Oak Bancshares. The sales were executed in multiple trades, with the prices reported as weighted averages.
In other recent news, Live Oak Bancshares demonstrated a strong performance in Q3 2024. The bank reported 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. However, Truist Securities revised its outlook for Live Oak Bancshares, reducing the price target to $46.00 while maintaining a Buy rating. This adjustment followed an unexpected rise in the bank's provision for credit losses, which resulted in earnings falling short of expectations. Similarly, Piper Sandler reduced the bank's price target from $50.00 to $44.00 while maintaining a Neutral rating. The firm now projects a 5% decrease in the 2024 EPS forecast and a 6% increase in the 2025 EPS forecast. 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
While Seward Gregory W's recent stock sale might raise eyebrows, it's essential to consider the broader financial picture of Live Oak Bancshares (NASDAQ:LOB). According to InvestingPro data, the company's P/E ratio stands at 24.98, which is relatively low compared to its PEG ratio of 0.25. This suggests that the stock may be undervalued relative to its near-term earnings growth potential, an observation supported by one of the InvestingPro Tips.
The company has demonstrated strong financial performance, with a revenue of $405.74 million in the last twelve months and an impressive operating income margin of 25.97%. Moreover, Live Oak Bancshares has maintained dividend payments for 10 consecutive years, indicating financial stability and a commitment to shareholder returns.
Investors should note that LOB's stock has shown significant momentum, with a 52.32% price total return over the past year and a 34.31% return in the last six months. This aligns with another InvestingPro Tip highlighting the stock's strong recent performance.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Live Oak Bancshares, providing deeper insights into the company's financial health and market position.
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