Insider Trading Report: Louisiana-Pacific Corp (LPX)

Alan Hughie, CFO at Louisiana-Pacific Corp (LPX) recently picked up 12,470 more shares. The buy increased his stake by nearly 29 percent, and came to a total price of just under $700,000.

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  • This marks the first insider buy of the year, with the last purchase occurring back in November 2020. Overall, company insiders have been active as both buyers and sellers, although insider sales have been higher on average, even as shares have rallied in the past three years.

    Insiders own about 1 percent of company shares overall.

    The manufacturer of wood-based products such as boards, trim, panels and other treated lumber products has been riding the price of lumber higher in the past year, and has recently seen shares drop as lumber prices have given up much of their gains for 2021.

    However, shares are still up 84 percent over the past yar, and the company has seen 30 percent profit margins with triple-digit revenue growth, a trend still likely to continue given the strong lumber demand for new housing and home remodeling.

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  • Action to take: Investors may like shares, which trade at about 5 times forward earnings. The company has a small 1.3 percent dividend yield, which was recently raised, and has a low payout ratio so there’s room for more increases over time.

    For traders, the price trend has been moving higher since mid-July. That trend may continue. The November $60 calls are a very active option trade that could easily move in-the-money in the next few months prior to expiration, potentially leading to high-double or even low-triple digit profits.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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