Live Oak Bancshares, Inc.
$36.01
-3.6%Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various commercial banking products and services to individuals, small businesses, and professionals in North Carolina, the United States. The company accepts various deposit products, including noninterest-bearing demand, as well as interest-bearing checking, money market, savings, and time deposits. It also offers commercial and industrial loans; construction and development loans; owner occupied and non-owner occupied collateral commercial real estate loans; and commercial land loans. In addition, the company provides settlement, accounting, and securitization services for government guaranteed loans; wealth and investment management services to high-net-worth individuals and families; investment advisory services to a series of funds focused on providing venture capital to new and emerging financial technology companies; and an on-site restaurant location to company employees and business visitors. Live Oak Bancshares, Inc. was incorporated in 2008 and is headquartered in Wilmington, North Carolina.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 16.1).
Valuation inputs: P/E 16.1, earnings yield +6.2%, momentum -3.6%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +8.3%, ROIC +0.7%).
Profitability stack: net margin +10.0%, ROE +8.3%, ROIC +0.7%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +91.7%, momentum -3.6%, net margin +10.0%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Live Oak Bancshares, Inc. Market vs Earnings Trajectory
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Live Oak Bancshares, Inc. Fair Value Envelope
Live Oak Bancshares, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.
Profitability Insight
Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.
Live Oak Bancshares, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
Live Oak Bancshares, Inc. Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Live Oak Bancshares, Inc. Street Expectations Map
Wall Street analysts project that LOB stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 41.00, with estimates ranging from a low of 41.00 to a high of 41.00.
The consensus 1-year price target stands at 41.00, with estimates ranging from a low of 41.00 to a high of 41.00.
Analyst Consensus Analysis
Upside Potential
Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Live Oak Bancshares, Inc. Insider Positioning
During the last 12 months, insiders have purchased $231K and sold $10.76M worth of LOB shares, resulting in $10.53M of net selling activity.
3 Months
0
0.00
151.3K
5.56M
-5.6M
-$5.56M
3-6 Months
2.6K
99.99K
105.8K
4.00M
-3.9M
-$3.90M
6-9 Months
1.0K
30.24K
37.3K
1.21M
-1.2M
-$1.18M
9-12 Months
4.0K
100.50K
0
0.00
+100K
+$100K
Top Buyers
Lucht David G
Director
$100K
Stasiowska Ewa Maria
Officer: Chief Risk Officer
$100K
Bradford Tonya Williams
Director
$30K
Top Sellers
Mahan James S Iii
Director, 10 Percent Owner, Officer: Chief Executive Officer
$7.23M
Derraik Renato
Officer: Chief Info./Digital Off., Bank
$2.84M
Spencer Courtney
Officer: Chief Experience Officer
$378K
Phifer Walter J
Officer: Chief Financial Officer
$172K
Seward Gregory W
Officer: General Counsel
$146K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $10.53M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 3 buyers. More insiders selling than buying suggests cautious or negative sentiment.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
lob Dividend History
Learning Layer
Related Guides
Build conviction on LOB by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.