Lumber Liquidators (LL, $11.25) is no longer being pursued by founder
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.
LL in +16.15% Uptrend, advancing for three consecutive days on May 26, 2023
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where LL advanced for three days, in of 282 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 09, 2023. 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 .
LL moved above its 50-day moving average on May 17, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for LL crossed bullishly above the 50-day moving average on May 22, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 54 cases where LL's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
LL broke above its upper Bollinger Band on May 26, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for LL entered a downward trend on May 11, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. LL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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 (0.552) is normal, around the industry mean (14.048). P/E Ratio (9.843) is within average values for comparable stocks, (25.107). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.436). LL has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.037). P/S Ratio (0.120) is also within normal values, averaging (68.781).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 76, placing this stock worse than average.
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Fundamental Analysis Ratings
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