The Forecast Just Changed on Luther Burbank Corporation (NASDAQ:LBC)

The Forecast Just Changed on Luther Burbank Corporation (NASDAQ:LBC)

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The Luther Burbank Corporation (LBC) shares are trading at higher $9.31 and the avg recommendation for the stock is Moderate Buy. The current analyst price target stands at $11.50.

To add more color to this target, the company’s high over the last year is $11.99 and the low is $6.76. Over the last 52 weeks, LBC is down -22.35% while the S&P 500 is up 1.07%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, LBC reported a profit of $32.12 million. Luther Burbank Corporation also saw revenues increase to $64.33 million. In addition, LBC has free cash flow of $14.84 million as of 03-2020.

LBC booked profit margins of 16.70%, its Return on Equity (ROE) is 7.30%, and its Return on Assets is 0.60%. All told, it is clear that, LBC needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. LBC has a short ratio of 2.52 and outstanding shares of 55.61M.

Company Outlook

LBC has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 79890.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.79. Investors should also keep an eye on sector updates as LBC has historically followed its peers on positive news.

All told, Luther Burbank Corporation LBC has strung together solid data and demonstrated underlying fundamentals. At its current valuation, LBC represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Luther Burbank Corporation LBC is now commanding a market cap of 493.52M and a float of 12.10M. LBC is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of LBC stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in LBC, either long or short, and we have not been compensated for this article.