Do Ladder Capital Corp (NYSE: LADR) Fit In A Value Investing Philosophy?

UPWK stock
UPWK stock

The Vanguard Group, Inc. recently announced the acquisition of new stake in Ladder Capital Corp (NYSE:LADR). The institutional investor has increased its shareholding in the Real Estate company by 3.22% to 8.82 million shares with purchase of 0.28 million shares. This fresh investment now brings its stake to 8.15% valued currently at $71.48 million. In addition, Advisors Capital Management LLC raised its holdings by 1.53 million to 2.8 million shares. And Northern Trust Investments, Inc.(. has lifted its position by 2.27% or 56673.0 shares – to 2.56 million shares.

With over 0.83 million Ladder Capital Corp (LADR) shares trading Friday and a closing price of $7.39 on the day, the dollar volume was approximately $6.15 million. The shares have shown a positive weekly performance of 1.51% and its price on 07/24/20 gained nearly 0.68%. Currently, there are 106.33M common shares owned by the public and among those 92.84M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 6 analysts who have offered their price forecasts for LADR have a consensus price objective of $10.58. The analysts have set the share’s price value over the next 12 months at a high of $11.50 and a low of $9.50 should the stock experience a downside. Incidentally, analysts’ outlook for the Ladder Capital Corp stock is 2.00 for the next 12 months. The average price target is 31.57% above its last price level and an upside to the estimated low will see the stock gain 22.21% over that period. But an upside of 35.74% will see the stock hit the forecast high price target while mean target price for the stock is $10.50.

Insiders at the company have transacted a total of 38 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 19 of these insider trades were purchases, accounting for 7,371,749 shares. Insider sales of the common stock occurred on 19 occasions, with total insider shares sold totaling 2,398,498 shares.

The top 3 mutual fund holders in Ladder Capital Corp are Vanguard Total Stock Market Index, Vanguard Small Cap Index Fund, and iShares Tr. – Mortgage Real Estat. Vanguard Total Stock Market Index owns 2.67 million shares of the company’s stock, all valued at over $21.62 million. Vanguard Small Cap Index Fund sold 56629.0 shares to see its total holdings shrink to 2.44 million shares valued at over $19.8 million and representing 2.26% of the shares outstanding. iShares Tr. – Mortgage Real Estat sold 6010.0 shares to bring its total holdings to over 2.23 million shares at a value of $18.06 million. iShares Tr. – Mortgage Real Estat now owns shares totaling to 2.06% of the shares outstanding.

Shares of Ladder Capital Corp (NYSE: LADR) opened at $7.60, up $0.26 from a prior closing price of $7.34. However, the script later closed the day at $7.39, up 0.68%. The company’s stock has a 5-day price change of 1.51% and 4.97% over the past three months. LADR shares are trading -59.04% year to date (YTD), with the 12-month market performance down to -56.22% lower. It has a 12-month low price of $2.65 and touched a high of $18.97 over the same period. Currently, 0.83 million shares have been traded, compared to an average intraday trading volume of 1.66 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -2.13%, -6.43%, and -41.93% respectively.

Institutional ownership of Ladder Capital Corp (NYSE: LADR) shares accounts for 57.50% of the company’s 106.33M shares outstanding. Mutual fund holders own 26.81%, while other institutional holders and individual stakeholders account for 29.35% and 14.65% respectively.

It has a market capitalization of $926.85M and a beta (3y monthly) value of 2.39. The stock’s trailing 12-month PE ratio is 9.28, while the earnings-per-share (ttm) stands at $0.80. The company has a debt-to-equity ratio at 4.26. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.08% over the week and 5.21% over the month.

Analysts forecast that Ladder Capital Corp (LADR) will achieve an EPS of $0.03 for the current quarter, $0.14 for the next quarter and $0.88 for 2021. The lowest estimate earnings-per-share for the quarter is $0 while analysts give the company a high EPS estimate of $0.09. Comparatively, EPS for the current quarter was $0.43 a year ago. Earnings per share for the fiscal year are expected to decrease by -37.50%, and 44.05% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 6 brokerage firm advisors rate Ladder Capital Corp (LADR) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 1 of the 6 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the LADR, a number of firms have released research notes about the stock. B. Riley FBR stated their Buy rating for the stock in a research note on May 06, 2020, with the firm’s price target at $7.50-$11. B. Riley FBR coverage for the Ladder Capital Corp (LADR) stock in a research note released on April 03, 2020 offered a Neutral rating with a price target of $7.50. Deutsche Bank was of a view on March 02, 2020 that the stock is Buy, while Compass Point gave the stock Buy rating on December 02, 2019, issuing a price target of. JP Morgan on their part issued Neutral rating on October 24, 2018.


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