Live Oak Bancshares, Inc.’s (LOB) stock price has seen a considerable decline amidst rising concerns surrounding the potential financial crisis stemming from high-profile bank failures. LOB is currently trading well below its 50-day and 200-day moving averages of $28.31 and $32.33, respectively, indicating a downtrend. Moreover, on March 13, the stock hit its yearly low of $17.31 following the crash of the Silicon Valley Bank.

LOB's near-term prospects look bleak as the Federal Reserve remains committed to keeping interest rates elevated for the year. Despite steady growth over the years, its top and bottom lines are predicted to weaken in upcoming quarters, and its stock price could fall further. In this article, let's look at a few of the firm’s key metrics to understand the situation.

Live Oak Bancshares Inc.’s Revenues and Net Income Trends: June 2020 - December 2022

LOB has experienced an overall consistent growth in its net income, rising from $6.90 million at the end of June 2020 to $17.62 million at the end of December 2022. The most recent value of $20.46 million on September 30, 2022, represents a growth rate of 202.9% compared to the first value (June 2020). The largest fluctuations were experienced between December 2020 and March 2021, when net income increased by 73.7% from $5.95 million to $10.66 million. Overall, the net income appears to be trending upwards.

The series of reported revenue for LOB from June 2020 - December 2022 exhibits an overall upward trend, increasing from $189.79 million to $524.55 million, representing a growth rate of 176.85%. Fluctuations include dips in September 2020 ($228.92 million) and December 2021 ($446.18 million), as well as spikes in March 2021 ($307.83 million) and June 2022 ($517.98 million). As of December 2022,  the value was $524.55 million.

LOB Stock Drops 27.8%: 180 Days Chart

LOB has seen a downward trend in its share price from $32.32 on October 28, 2022, to $23.35 on April 25, 2023. The growth rate for this time period is -27.77%. Here is a chart of LOB’s price over the past 180 days.

Live Oak Bancshares Inc’s Ratings: Steady Decline in 2023

LOB has had a bit of a mixed POWR Ratings across the past nine months. Starting in October 2022, LOB began with an overall rating of C, ranked 25 out of 28 stocks in the Southeast Regional Banks category. However, from November 2022 to March 2023, it stayed at a C, and its rank in the category decreased to 26, then 27.

As of April 25, 2023, LOB has an overall rating of F, translating to a Strong Sell in our proprietary system. It is ranked last out of 28 stocks in its competitive category.

LOB received ratings of 8, 95, and 40 for Growth, Momentum, and Quality on October 29, 2022, respectively. These ratings suggest that LOB is strongly performing in terms of its growth strategy, price swings, and perceived value among investors. The subsequent ratings go down over the end of 2022 and throughout 2023, where Momentum, Quality, and Value all decreased before reaching the lowest ratings at the end of April, with an overall low score for Sentiment over the timeline. Overall, these ratings imply that LOB’s growth and momentum have seen a steady decline in 2023.

How does Live Oak Bancshares Inc. (LOB) Stack Up Against its Peers?

Other stocks in the Southeast Regional Banks sector that may be worth considering are Peoples Bancorp of North Carolina Inc. (PEBK), Southern States Bancshares, Inc.  (SSBK), and Popular Inc. (BPOP) -- they have better POWR Ratings.

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LOB shares were trading at $22.65 per share on Wednesday morning, up $0.35 (+1.57%). Year-to-date, LOB has declined -24.94%, versus a 6.80% rise in the benchmark S&P 500 index during the same period.

Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics.

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