Liquidity Services, Inc. (NASDAQ: LQDT) announced its quarterly earnings on October 12, 2023, revealing a robust performance that surpassed analysts’ expectations. The company reported earnings per share (EPS) of $0.37, exceeding the consensus estimate of $0.29 by $0.08. Additionally, Liquidity Services achieved revenue of $118.09 million for the quarter, significantly higher than the anticipated $100.86 million, according to FiscalAI.
The firm also provided updated guidance for Q1 2026, projecting an EPS in the range of $0.250 to $0.350. Liquidity Services demonstrated a return on equity of 20.75% and a net margin of 6.25%, indicators of its operational efficiency and profitability.
Stock Performance and Analyst Ratings
On the day of the earnings announcement, Liquidity Services’ stock opened at $25.77. Over the past year, shares have fluctuated between a low of $21.67 and a high of $39.72. The stock’s fifty-day moving average stands at $25.02, while its 200-day average is $24.99. The company currently has a market capitalization of $804.95 million and a price-to-earnings (P/E) ratio of 31.12.
Several brokerages have recently revised their ratings on Liquidity Services. Barrington Research reaffirmed an “outperform” rating with a price target of $40.00 in a report released on October 9, 2023. Conversely, Wall Street Zen downgraded its rating from “strong-buy” to “buy” on August 9, 2023. Weiss Ratings maintained a “hold (c)” rating on October 8, 2023. Currently, analysts have a consensus rating of “Moderate Buy” with a price target of $38.50, according to MarketBeat data.
Insider Trading and Institutional Investments
In related news, Director Jaime Mateus-Tique sold 5,403 shares of the company on September 15, 2023, at an average price of $27.45. The total transaction amounted to $148,312.35. Following this sale, Mateus-Tique retains ownership of 164,562 shares, valued at approximately $4.52 million. This transaction represents a 3.18% decrease in the director’s ownership stake, as disclosed in a filing with the Securities and Exchange Commission.
Institutional investors hold a significant portion of Liquidity Services, with approximately 71.15% of the company’s stock owned by various hedge funds and investment firms. Notably, Ameriprise Financial Inc. increased its stake by 55.1% in the second quarter, now owning 1,281,332 shares worth around $30.23 million. Other firms, including Punch & Associates Investment Management Inc. and Wellington Management Group LLP, also expanded their holdings in recent months, reflecting strong institutional interest in Liquidity Services.
Liquidity Services is recognized for its diverse e-commerce marketplaces and value-added services, operating in sectors such as government auctions and retail supply chains. The company maintains four primary segments: GovDeals, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), and Machinio.
