LandBridge (NYSE:LB) Shares Up 7.3% – Still a Buy?

LandBridge Company LLC (NYSE:LB)’s stock price traded up 7.3% on Tuesday . The company traded as high as $76.33 and last traded at $76.3350. 289,078 shares were traded during mid-day trading, a decline of 45% from the average session volume of 525,506 shares. The stock had previously closed at $71.14.

Analyst Ratings Changes

A number of research analysts recently commented on the stock. The Goldman Sachs Group raised their price objective on shares of LandBridge from $69.00 to $84.00 and gave the company a “buy” rating in a research note on Friday. UBS Group restated a “neutral” rating and issued a $65.00 target price on shares of LandBridge in a research report on Monday, November 24th. Wells Fargo & Company decreased their price target on LandBridge from $91.00 to $90.00 and set an “overweight” rating for the company in a research note on Wednesday, November 26th. Barclays lifted their price target on LandBridge from $57.00 to $75.00 and gave the company an “equal weight” rating in a research report on Friday, February 27th. Finally, Zacks Research downgraded LandBridge from a “strong-buy” rating to a “strong sell” rating in a research note on Friday, January 23rd. Three equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, LandBridge currently has an average rating of “Hold” and an average target price of $75.67.

LandBridge Stock Performance

The firm has a market cap of $5.95 billion, a P/E ratio of 81.29 and a beta of 0.09. The company has a debt-to-equity ratio of 0.70, a quick ratio of 4.87 and a current ratio of 4.87. The stock’s 50-day moving average is $62.26 and its 200 day moving average is $58.49.

LandBridge Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 19th. Shareholders of record on Thursday, March 5th will be issued a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 0.6%. This is an increase from LandBridge’s previous quarterly dividend of $0.10. The ex-dividend date is Thursday, March 5th. LandBridge’s dividend payout ratio is currently 51.06%.

LandBridge announced that its board has approved a share buyback program on Wednesday, February 25th that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 1% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In related news, insider Jason Thomas Long bought 2,143 shares of the company’s stock in a transaction on Monday, January 5th. The shares were purchased at an average cost of $46.59 per share, for a total transaction of $99,842.37. Following the acquisition, the insider owned 223,546 shares of the company’s stock, valued at approximately $10,415,008.14. This represents a 0.97% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Charles L. Watson sold 30,680 shares of LandBridge stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $74.07, for a total transaction of $2,272,467.60. Following the completion of the transaction, the director directly owned 86,920 shares in the company, valued at approximately $6,438,164.40. The trade was a 26.09% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have acquired 3,542 shares of company stock worth $164,630 and have sold 53,350 shares worth $3,974,555. 70.42% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On LandBridge

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. NewEdge Advisors LLC raised its stake in shares of LandBridge by 110.6% in the 2nd quarter. NewEdge Advisors LLC now owns 398 shares of the company’s stock valued at $27,000 after purchasing an additional 209 shares during the period. Kestra Advisory Services LLC acquired a new position in shares of LandBridge during the fourth quarter worth about $33,000. Quattro Advisors LLC bought a new position in shares of LandBridge during the fourth quarter worth about $36,000. Galaxy Group Investments LLC acquired a new stake in LandBridge in the 4th quarter valued at approximately $36,000. Finally, CIBC Private Wealth Group LLC acquired a new stake in LandBridge in the 4th quarter valued at approximately $40,000.

LandBridge Company Profile

LandBridge Company LLC owns and manages land and resources to support and enhance oil and natural gas development in the United States. It owns surface acres in and around the Delaware Basin in Texas and New Mexico. The company holds a portfolio of oil and gas royalties. It also sells brackish water and other surface composite materials. The company was founded in 2021 and is based in Houston, Texas. LandBridge Company LLC operates as a subsidiary of LandBridge Holdings LLC.