Now Is A Suitable Moment For A Long-Term Purchase Of Livent Corporation (NYSE: LTHM)


Columbia Management Investment Ad.. recently announced the acquisition of new stake in Livent Corporation (NYSE:LTHM). The institutional investor has increased its shareholding in the Basic Materials company by 9.44% to 5.49 million shares with purchase of 0.47 million shares. This fresh investment now brings its stake to 3.75% valued currently at $34.4 million. In addition, FIAM LLC raised its holdings by 1.46 million to 4.09 million shares. And Newton Investment Management Ltd. has lifted its position by 3.98% or 0.13 million shares – to 3.37 million shares.

With over 2.87 million Livent Corporation (LTHM) shares trading Friday and a closing price of $8.65 on the day, the dollar volume was approximately $24.84 million. The shares have shown a positive weekly performance of 18.49% and its price on 08/28/20 gained nearly 5.88%. Currently, there are 146.20M common shares owned by the public and among those 145.16M 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: 12 analysts who have offered their price forecasts for LTHM have a consensus price objective of $7.13. The analysts have set the share’s price value over the next 12 months at a high of $9.00 and a low of $5.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Livent Corporation stock is 2.70 for the next 12 months. The average price target is -15.33% below its last price level and a downside to the estimated low will see the stock lose -73.0% over that period. But an upside of 3.89% will see the stock hit the forecast high price target while mean target price for the stock is $7.50.

Insiders at the company have transacted a total of 21 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 14 of these insider trades were purchases, accounting for 227,154 shares. Insider sales of the common stock occurred on 7 occasions, with total insider shares sold totaling 76,581 shares.

The top 3 mutual fund holders in Livent Corporation are iShares Core S&P Small Cap ETF, Fidelity OTC Portfolio, and Fidelity Balanced Fund. iShares Core S&P Small Cap ETF owns 9.1 million shares of the company’s stock, all valued at over $57.06 million. The company bought an additional 32508.0 shares recently to bring their total holdings to about 6.23% of the shares outstanding. Fidelity OTC Portfolio sold 92336.0 shares to see its total holdings shrink to 5.71 million shares valued at over $35.79 million and representing 3.91% of the shares outstanding. Fidelity Balanced Fund bought 0.56 million shares to bring its total holdings to over 5.62 million shares at a value of $35.26 million. Fidelity Balanced Fund now owns shares totaling to 3.85% of the shares outstanding.

Shares of Livent Corporation (NYSE: LTHM) opened at $8.19, up $0.02 from a prior closing price of $8.17. However, the script later closed the day at $8.65, up 5.88%. The company’s stock has a 5-day price change of 18.49% and 27.77% over the past three months. LTHM shares are trading 1.17% year to date (YTD), with the 12-month market performance up to 45.13% higher. It has a 12-month low price of $3.95 and touched a high of $12.29 over the same period. Currently, 2.87 million shares have been traded, compared to an average intraday trading volume of 2.61 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 17.67%, 26.87%, and 16.97% respectively.

Institutional ownership of Livent Corporation (NYSE: LTHM) 146.20M shares outstanding. Mutual fund holders own 64.12%, while other institutional holders and individual stakeholders account for 85.23% and 41.39% respectively.

It has a market capitalization of $1.19B. The stock’s trailing 12-month PE ratio is 80.84, while the earnings-per-share (ttm) stands at $0.11. The company has a PEG of 13.14 and a Quick Ratio of 1.80 with the debt-to-equity ratio at 0.37. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.66% over the week and 5.35% over the month.

Analysts forecast that Livent Corporation (LTHM) will achieve an EPS of $0.01 for the current quarter, $0.03 for the next quarter and $0.24 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.03 while analysts give the company a high EPS estimate of $0.05. Comparatively, EPS for the current quarter was $0.12 a year ago. Earnings per share for the fiscal year are expected to decrease by -60.40%, and 221.33% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 12 brokerage firm advisors rate Livent Corporation (LTHM) as a “Moderate Buy” at a consensus score of 2.70. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 8 of the 12 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the LTHM, a number of firms have released research notes about the stock. Raymond James stated their Strong Buy rating for the stock in a research note on August 26, 2020, with the firm’s price target at $9. BMO Capital Markets coverage for the Livent Corporation (LTHM) stock in a research note released on April 06, 2020 offered a Market Perform rating with a price target of. Goldman was of a view on March 30, 2020 that the stock is Neutral, while Vertical Research gave the stock Hold rating on March 26, 2020, issuing a price target of. KeyBanc Capital Markets on their part issued Sector Weight rating on March 26, 2020.


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