Zacks Investment Research Downgrades Lumber Liquidators (NYSE:LL) to Strong Sell

Lumber Liquidators (NYSE:LL) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Friday, Zacks.com reports.

According to Zacks, “Lumber Liquidators, Inc. found its niche market in hardwood flooring. Lumber Liquidators prides itself on having one of the largest inventories of prefinished and unfinished hardwood floors in the industry. There are flooring experts in every store ready to help, and free samples are available. Lumber Liquidators carries solid and engineered hardwood, laminate flooring, bamboo flooring, cork flooring, vinyl flooring, wood-look tile flooring, butcher blocks, mouldings, accessories and tools. It negotiates directly with the mills, eliminating the middleman and passing the savings on to the customers. The environmentally conscientious company only purchases from suppliers who practice sustainable harvesting, which allows forests to heal and re-grow faster. Everything Lumber Liquidators sells (unless specified otherwise) is first-quality, graded to industry specifications, and available in standard flooring lengths. “

Other analysts have also recently issued research reports about the company. ValuEngine upgraded Lumber Liquidators from a “sell” rating to a “hold” rating in a research note on Wednesday, October 2nd. Raymond James lifted their target price on Lumber Liquidators from $10.00 to $14.00 and gave the stock an “outperform” rating in a research report on Friday, September 13th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and one has given a buy rating to the company. Lumber Liquidators presently has a consensus rating of “Hold” and an average price target of $11.14.

NYSE LL opened at $8.99 on Friday. The company has a market capitalization of $255.80 million, a price-to-earnings ratio of 15.77, a price-to-earnings-growth ratio of 1.08 and a beta of 1.91. The company has a debt-to-equity ratio of 1.24, a current ratio of 1.48 and a quick ratio of 0.19. Lumber Liquidators has a 12 month low of $6.59 and a 12 month high of $14.44. The company’s fifty day moving average price is $9.12 and its two-hundred day moving average price is $9.79.

Lumber Liquidators (NYSE:LL) last released its earnings results on Wednesday, November 6th. The specialty retailer reported $0.08 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.20 by ($0.12). The company had revenue of $263.96 million during the quarter, compared to the consensus estimate of $276.01 million. Lumber Liquidators had a positive return on equity of 2.90% and a negative net margin of 5.85%. Lumber Liquidators’s revenue for the quarter was down 2.4% on a year-over-year basis. During the same period in the previous year, the firm posted $0.27 EPS. As a group, analysts anticipate that Lumber Liquidators will post 0.28 EPS for the current year.

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. NEXT Financial Group Inc lifted its stake in Lumber Liquidators by 147.3% in the third quarter. NEXT Financial Group Inc now owns 2,881 shares of the specialty retailer’s stock valued at $28,000 after buying an additional 1,716 shares during the last quarter. Point72 Hong Kong Ltd acquired a new stake in shares of Lumber Liquidators in the 2nd quarter worth about $29,000. Advisory Services Network LLC acquired a new stake in shares of Lumber Liquidators in the 2nd quarter worth about $82,000. Cubist Systematic Strategies LLC acquired a new stake in shares of Lumber Liquidators in the 2nd quarter worth about $112,000. Finally, Virtu Financial LLC bought a new stake in Lumber Liquidators in the 3rd quarter valued at about $121,000. Hedge funds and other institutional investors own 74.81% of the company’s stock.

Lumber Liquidators Company Profile

Lumber Liquidators Holdings, Inc, together with its subsidiaries, operates as a multi-channel specialty retailer of hard-surface flooring, and hard-surface flooring enhancements and accessories. The company offers hardwood species, engineered hardwood, laminates, resilient vinyl flooring, waterproof vinyl plank, and porcelain tile; renewable flooring, and bamboo and cork products; and a selection of flooring enhancements and accessories, including moldings, noise-reducing underlay, adhesives, and flooring tools under the Bellawood brand.

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