Live Oak Bancshares Stock Buy Hold or Sell Recommendation

LOB Stock  USD 41.22  1.63  4.12%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Live Oak Bancshares is 'Hold'. Macroaxis provides Live Oak buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Live Oak positions. The advice algorithm takes into account all of Live Oak's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Live Oak's buy or sell advice are summarized below:
Real Value
38.07
Target Price
35.25
Hype Value
41.2
Market Value
41.22
Naive Value
41.83
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Live Oak Bancshares given historical horizon and risk tolerance towards Live Oak. When Macroaxis issues a 'buy' or 'sell' recommendation for Live Oak Bancshares, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Live Oak Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Live and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Live Oak Bancshares. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons.

Execute Live Oak Buy or Sell Advice

The Live recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Live Oak Bancshares. Macroaxis does not own or have any residual interests in Live Oak Bancshares or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Live Oak's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Live OakBuy Live Oak
Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Hyperactively responds to market trendsDetails

Investor Sentiment

InterestedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon Live Oak Bancshares has a Risk Adjusted Performance of (0), Jensen Alpha of (0.32), Total Risk Alpha of (0.61) and Treynor Ratio of (0.03)
Live Oak Bancshares trade recommendations module can be used to check and cross-verify current advice provided by analysts analyzing the firm's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Live Oak Bancshares is not overpriced, please verify all Live Oak Bancshares fundamentals, including its total debt, target price, and the relationship between the net income and cash flow from operations . Given that Live Oak Bancshares has a number of shares shorted of 2.1 M, we recommend you to check Live Oak market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Live Oak Trading Alerts and Improvement Suggestions

Live Oak Bancshares generated a negative expected return over the last 90 days
About 67.0% of the company shares are owned by institutional investors
On 12th of March 2024 Live Oak paid $ 0.03 per share dividend to its current shareholders
Latest headline from news.google.com: American Century Companies Inc. Raises Stock Holdings in Live Oak Bancshares, Inc. - Defense World

Live Oak Returns Distribution Density

The distribution of Live Oak's historical returns is an attempt to chart the uncertainty of Live Oak's future price movements. The chart of the probability distribution of Live Oak daily returns describes the distribution of returns around its average expected value. We use Live Oak Bancshares price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Live Oak returns is essential to provide solid investment advice for Live Oak.
Mean Return
-0.05
Value At Risk
-3.48
Potential Upside
4.10
Standard Deviation
2.45
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Live Oak historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Live Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Live Oak is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Live Oak Bancshares backward and forwards among themselves. Live Oak's institutional investor refers to the entity that pools money to purchase Live Oak's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Manufacturers Life Insurance Co2023-09-30
370.2 K
D. E. Shaw & Co Lp2023-09-30
317.7 K
Northern Trust Corp2023-09-30
298.5 K
American Century Companies Inc2023-12-31
296.9 K
Hotchkis & Wiley Capital Management Llc2023-09-30
283.5 K
Millennium Management Llc2023-09-30
261.4 K
Charles Schwab Investment Management Inc2023-09-30
256.3 K
Vident Advisory, Llc2023-09-30
251.1 K
Bank Of New York Mellon Corp2023-09-30
197.2 K
T. Rowe Price Investment Management,inc.2023-09-30
6.4 M
Blackrock Inc2023-09-30
2.6 M
Note, although Live Oak's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Live Oak Cash Flow Accounts

201920202021202220232024 (projected)
Change In Cash(93.3M)96.9M(114.6M)212.9M165.9M174.2M
Free Cash Flow(531.1M)(294.0M)(122.8M)80.7M573.2M601.9M
Depreciation20.0M21.7M21.4M20.8M21.3M12.2M
Other Non Cash Items(540.3M)(277.3M)(351.9M)(97.9M)489.7M514.1M
Dividends Paid4.8M4.9M5.2M5.3M(5.3M)(5.1M)
Capital Expenditures37.2M21.0M3.1M43.8M46.8M39.8M
Net Income18.0M59.5M167.0M176.2M73.9M63.3M
End Period Cash Flow223.5M318.3M203.8M416.6M582.5M611.7M
Investments(647.7M)(2.6B)(162.6M)(1.4B)(1.9B)(1.8B)
Net Borrowings(1.4M)1.5B(1.2B)(235.1M)(211.6M)(201.0M)
Change To Netincome(535.2M)(291.9M)(282.3M)(58.3M)(67.0M)(70.4M)
Change Receivables394K(76.3M)1.8M(15.9M)(14.3M)(15.0M)

Live Oak Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Live Oak or Banks sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Live Oak's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Live stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.32
β
Beta against NYSE Composite2.09
σ
Overall volatility
2.48
Ir
Information ratio -0.08

Live Oak Volatility Alert

Live Oak Bancshares exhibits very low volatility with skewness of -0.25 and kurtosis of 1.71. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Live Oak's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Live Oak's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Live Oak Fundamentals Vs Peers

Comparing Live Oak's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Live Oak's direct or indirect competition across all of the common fundamentals between Live Oak and the related equities. This way, we can detect undervalued stocks with similar characteristics as Live Oak or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Live Oak's fundamental indicators could also be used in its relative valuation, which is a method of valuing Live Oak by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Live Oak to competition
FundamentalsLive OakPeer Average
Return On Equity0.0862-0.31
Return On Asset0.007-0.14
Profit Margin0.19 %(1.27) %
Operating Margin0.22 %(5.51) %
Current Valuation1.22 B16.62 B
Shares Outstanding44.77 M571.82 M
Shares Owned By Insiders24.68 %10.09 %
Shares Owned By Institutions66.87 %39.21 %
Number Of Shares Shorted2.1 M4.71 M
Price To Earning12.48 X28.72 X
Price To Book1.96 X9.51 X
Price To Sales4.68 X11.42 X
Revenue433.58 M9.43 B
Gross Profit508.33 M27.38 B
EBITDA82.83 M3.9 B
Net Income73.9 M570.98 M
Cash And Equivalents636.44 M2.7 B
Cash Per Share14.51 X5.01 X
Total Debt23.35 M5.32 B
Debt To Equity4.28 %48.70 %
Book Value Per Share20.23 X1.93 K
Cash Flow From Operations620.07 M971.22 M
Short Ratio4.90 X4.00 X
Earnings Per Share1.64 X3.12 X
Target Price44.0
Number Of Employees94318.84 K
Beta1.6-0.15
Market Capitalization1.83 B19.03 B
Total Asset11.27 B29.47 B
Retained Earnings642.82 M9.33 B
Z Score47.178.72
Annual Yield0 %
Five Year Return0.47 %
Note: Disposition of 1041 shares by John Sutherland of Live Oak at 41.3735 subject to Rule 16b-3 [view details]

Live Oak Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Live . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Live Oak Buy or Sell Advice

When is the right time to buy or sell Live Oak Bancshares? Buying financial instruments such as Live Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total318.3M133.2M23.4M22.2M
Total Assets8.2B9.9B11.3B11.8B

Use Investing Ideas to Build Portfolios

In addition to having Live Oak in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Business Services Thematic Idea Now

Business Services
Business Services Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Business Services theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Business Services Theme or any other thematic opportunities.
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When determining whether Live Oak Bancshares offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Live Oak's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Live Oak Bancshares Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Live Oak Bancshares Stock:
Check out Live Oak Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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When running Live Oak's price analysis, check to measure Live Oak's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Live Oak is operating at the current time. Most of Live Oak's value examination focuses on studying past and present price action to predict the probability of Live Oak's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Live Oak's price. Additionally, you may evaluate how the addition of Live Oak to your portfolios can decrease your overall portfolio volatility.
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Is Live Oak's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Live Oak. If investors know Live will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Live Oak listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
8.769
Dividend Share
0.12
Earnings Share
1.64
Revenue Per Share
8.817
Quarterly Revenue Growth
0.251
The market value of Live Oak Bancshares is measured differently than its book value, which is the value of Live that is recorded on the company's balance sheet. Investors also form their own opinion of Live Oak's value that differs from its market value or its book value, called intrinsic value, which is Live Oak's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Live Oak's market value can be influenced by many factors that don't directly affect Live Oak's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Live Oak's value and its price as these two are different measures arrived at by different means. Investors typically determine if Live Oak is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Live Oak's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.