Lumber Liquidators shares declined Friday, after news of its founder pulling back from plans to buyout the home-improvement company.
In an interview with Bloomberg, Tom Sullivan indicated that he had been working on a transaction, but had to re-think the plan after perceiving that the company's stock price had gotten too high and the company had declined to engage in discussions.
Last month, Lumber Liquidators reported second-quarter results that fell short of analysts' expectations, amidst the 25% tariff on imports from China that posed headwinds to the company's margins. The company also cut its full-year guidance, citing softening customer traffic and an tariff uncertainties. It now expects same-store sales to be flat for the year, and forecasts low-single digits growth in revenue.
According to a SEC filing on Friday, during the time span of about a month, Sullivan, bought stock for an average price of $7.88 a share, and then sold 1.25 million shares this week at an average of $11.68. That resulted in a gain of about $4.8 million for him, according to Bloomberg calculations.
On May 01, 2024, the Stochastic Oscillator for LL moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 61 instances where the indicator left the oversold zone. In of the 61 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where LL's RSI Oscillator exited the oversold zone, of 38 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 02, 2024. You may want to consider a long position or call options on LL as a result. In of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for LL just turned positive on April 29, 2024. Looking at past instances where LL's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LL advanced for three days, in of 277 cases, the price rose further within the following month. The odds of a continued upward trend are .
LL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for LL entered a downward trend on April 26, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.340) is normal, around the industry mean (12.888). P/E Ratio (9.843) is within average values for comparable stocks, (35.906). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.536). LL has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.033). P/S Ratio (0.060) is also within normal values, averaging (88.545).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. LL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a retailer of hardwood flooring
Industry SpecialtyStores