Liquidity Services (NASDAQ: LQDT) announced strong quarterly earnings on October 8, 2023, reporting earnings per share (EPS) of $0.37. This figure surpassed analysts’ expectations, which had anticipated an EPS of $0.29, marking a notable increase of $0.08. The company’s revenue for the quarter reached $118.09 million, significantly higher than the expected $100.86 million, according to FiscalAI.
The financial results reflect a return on equity of 20.75% and a net margin of 6.25%. Furthermore, Liquidity Services updated its guidance for the first quarter of 2026, projecting an EPS between $0.250 and $0.350.
Stock Performance and Analyst Ratings
Following the earnings announcement, Liquidity Services’ stock opened at $25.77. The company has experienced a 52-week low of $21.67 and a high of $39.72, demonstrating volatility in its share price. The stock’s fifty-day moving average stands at $25.02, while the 200-day moving average is slightly lower at $24.99. With a market capitalization of approximately $804.95 million, Liquidity Services boasts a price-to-earnings (P/E) ratio of 31.12 and a beta of 1.13, indicating a degree of market risk.
Several brokerages have recently provided new ratings on Liquidity Services. Barrington Research maintained an “outperform” rating, setting a price target of $40.00. Conversely, Wall Street Zen adjusted its rating from “strong-buy” to “buy” on August 9. Weiss Ratings also reiterated a “hold (c)” rating on October 8. Currently, two investment analysts rate the stock as a Buy, while one maintains a Hold rating. Data from MarketBeat shows that the consensus rating is “Moderate Buy” with a price target of $38.50.
Insider Trading and Institutional Holdings
In related news, on September 15, 2023, Director Jaime Mateus-Tique sold 5,403 shares of Liquidity Services at an average price of $27.45, amounting to a total transaction of $148,312.35. Following this sale, Mateus-Tique retains ownership of 164,562 shares valued at approximately $4.52 million, reflecting a 3.18% decrease in ownership. This transaction was disclosed in a filing with the Securities and Exchange Commission.
Insider ownership stands at 28.40%, while institutional investors hold 71.15% of the company’s stock. Recent activity among institutional investors includes significant increases in holdings. Ameriprise Financial Inc. raised its position by 55.1% in the second quarter, acquiring an additional 454,988 shares and bringing its total to 1,281,332 shares valued at $30.23 million.
Punch & Associates Investment Management Inc. also increased its holdings by 38.9% in the third quarter, now owning 909,743 shares worth $24.95 million. Similarly, Wellington Management Group LLP boosted its stake by 18.3%, while Millennium Management LLC reported a 141.9% increase in its holdings during the same period.
Liquidity Services, Inc. provides e-commerce marketplaces and value-added services, operating in several segments, including GovDeals and the Retail Supply Chain Group (RSCG). Its platforms facilitate the sale of surplus goods, connecting sellers and buyers in both the public and private sectors across the United States and internationally.
As the company continues to grow, investor interest remains high, reflecting confidence in its business model and market position.
