Is Lumber Liquidators Holdings Inc. (NYSE: LL) Back In The Buying Zone?


    BlackRock Fund Advisors recently announced the acquisition of new stake in Lumber Liquidators Holdings Inc. (NYSE:LL). The institutional investor has increased its shareholding in the Consumer Cyclical company by 1.60% to 4.2 million shares with purchase of 66251.0 shares. This fresh investment now brings its stake to 14.59% valued currently at $93.82 million. In addition, T. Rowe Price Associates, Inc. (I.. raised its holdings by 36773.0 to 2.05 million shares. And The Vanguard Group, Inc. has lifted its position by 8.66% or 0.14 million shares – to 1.76 million shares.

    With over 1.56 million Lumber Liquidators Holdings Inc. (LL) shares trading Monday and a closing price of $23.99 on the day, the dollar volume was approximately $37.33 million. The shares have shown a negative weekly performance of -15.14% and its price on 08/31/20 lost nearly -5.92%. Currently, there are 28.83M common shares owned by the public and among those 27.50M 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: 5 analysts who have offered their price forecasts for LL have a consensus price objective of $22.00. The analysts have set the share’s price value over the next 12 months at a high of $30.00 and a low of $14.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Lumber Liquidators Holdings Inc. stock is 3.00 for the next 12 months. The average price target is -26.26% below its last price level and a downside to the estimated low will see the stock lose -71.36% over that period. But an upside of 20.03% will see the stock hit the forecast high price target while mean target price for the stock is $22.00.

    Insiders at the company have transacted a total of 43 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 27 of these insider trades were purchases, accounting for 203,420 shares. Insider sales of the common stock occurred on 16 occasions, with total insider shares sold totaling 22,832 shares.

    The top 3 mutual fund holders in Lumber Liquidators Holdings Inc. are iShares Core S&P Small Cap ETF, T Rowe Price Small Cap Value Fund, and Vanguard Total Stock Market Index. iShares Core S&P Small Cap ETF owns 1.79 million shares of the company’s stock, all valued at over $40.04 million. The company bought an additional 6426.0 shares recently to bring their total holdings to about 6.23% of the shares outstanding. T Rowe Price Small Cap Value Fund bought 62500.0 shares to see its total holdings expand to 1.25 million shares valued at over $27.98 million and representing 4.35% of the shares outstanding. Vanguard Total Stock Market Index now owns shares totaling to 2.73% of the shares outstanding.

    Shares of Lumber Liquidators Holdings Inc. (NYSE: LL) opened at $25.41, down -$0.09 from a prior closing price of $25.50. However, the script later closed the day at $23.99, down -5.92%. The company’s stock has a 5-day price change of -15.14% and 132.01% over the past three months. LL shares are trading 145.55% year to date (YTD), with the 12-month market performance up to 154.94% higher. It has a 12-month low price of $3.77 and touched a high of $29.59 over the same period. Currently, 1.56 million shares have been traded, compared to an average intraday trading volume of 1.17 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 -1.32%, 21.28%, and 116.82% respectively.

    Institutional ownership of Lumber Liquidators Holdings Inc. (NYSE: LL) shares accounts for 72.60% of the company’s 28.83M shares outstanding. Mutual fund holders own 33.70%, while other institutional holders and individual stakeholders account for 38.12% and 15.95% respectively.

    It has a market capitalization of $676.04M and a beta (3y monthly) value of 2.56. The stock’s trailing 12-month PE ratio is 21.52, while the earnings-per-share (ttm) stands at $1.12. The company has a PEG of 0.72 and a Quick Ratio of 0.70 with the debt-to-equity ratio at 0.57. Price movements for the stock have been influenced by the stock’s volatility, which stands at 7.46% over the week and 7.14% over the month.

    Analysts forecast that Lumber Liquidators Holdings Inc. (LL) will achieve an EPS of $0.22 for the current quarter, $0.33 for the next quarter and $1.08 for 2021. The lowest estimate earnings-per-share for the quarter is $0.1 while analysts give the company a high EPS estimate of $0.34. Comparatively, EPS for the current quarter was $0.08 a year ago. Earnings per share for the fiscal year are expected to increase by 117.60%, and -1.65% over the next financial year. EPS should grow at an annualized rate of 30.00% over the next five years, compared to -32.00% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 5 brokerage firm advisors rate Lumber Liquidators Holdings Inc. (LL) as a “Hold” at a consensus score of 3.00. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 3 of the 5 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the LL, a number of firms have released research notes about the stock. Loop Capital stated their Buy rating for the stock in a research note on July 14, 2020, with the firm’s price target at $11-$18. Morgan Stanley coverage for the Lumber Liquidators Holdings Inc. (LL) stock in a research note released on January 21, 2020 offered a Underweight rating with a price target of $5. Raymond James was of a view on May 01, 2019 that the stock is Outperform, while Evercore ISI gave the stock In-line rating on March 20, 2019, issuing a price target of $10. Loop Capital on their part issued Hold rating on January 03, 2019.


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