As of May 29, 2023, Livent Co. (NYSE:LTHM) has caught the attention of Dimensional Fund Advisors LP. The institutional investor recently lifted its stake in the shares of Livent by 8.8% during the fourth quarter of the previous fiscal year.
According to a recent filing with the Securities & Exchange Commission, Dimensional Fund Advisors LP now owns 2,482,721 common shares in Livent’s stock after acquiring an additional 201,509 shares over the said period. At the end of last fiscal year’s reporting period, Dimensional Fund Advisors LP’s ownership was estimated to be at 1.38% of LTHM worth $49,331,000.
Livent recently posted their first-quarter earnings results on May 2nd and delivered better than expected results for its investors. The company reported an earnings per share (EPS) of $0.60 for the quarter which surpassed analyst projections by $0.21.
The company’s revenue also exceeded analyst estimates and amounted to $235.50 million for the quarter compared to a predicted sum of $229.94 million which marks an increase by 64.1% compared to the same period last year as per statistics released by Livent Co.
The company had a return on equity (ROE) of 26.15% and a net margin of 36.30%, impressive figures that allowed investors to be more confident about holding stakes in this lithium manufacturing firm.
Analysts now project that based on such phenomenal progress and financial reports provided in the first quarter that Livent will post on average an EPS of $2.04 for its current fiscal year.
Considering these circumstances conjunctively implies that there is no doubt over why various stakeholders are considering investing into Livent Co., with institutional investors such as Dimensional Fund Advisors LP perhaps leading from front herein due to their staggeringly high stakes in the company’s shares.
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Livent Co.: Recent Institutional Investment Activity and Growth Potential
Livent Co. Stock: A Closer Look at Recent Institutional Investment Activity
The stock market is recently buzzing with institutional investors modifying their holdings of Livent Co. (NYSE LTHM) stock. As of the first quarter, US Bancorp DE has boosted its share position in Livent by 46.5%, bringing its new total to 21,176 shares of the company’s stock worth $552,000 after purchasing an additional 6,726 shares over the period.
Similarly, Cambridge Investment Research Advisors Inc. has increased its position in Livent by 27.4% in Q1 and now owns 20,285 shares of the company’s stock worth $529,000 after buying an additional 4,359 shares during the period. HighTower Advisors LLC has also boosted its position in shares of Livent by 18.1% in Q1 and claimed ownership of a total sum value of $1,033,000 after buying an additional 6,044 shares over the period.
Private Advisor Group LLC’s share position also increased by 3.4% at the end of Q1 with a new total ownership value of $684,000 after purchasing an additional 856 shares during this time frame. Finally, PNC Financial Services Group Inc.’s share position increased by 7.5% as well for a new total ownership value of $1,017,000 after buying an additional 2,726 shares during that period.
According to reports from May 29th , it appears that institutional investors owned around 90.62% of Livent Co.’s stocks totaling up to a market cap of $4.29 billion with NYSE LTHM opening at $23.90 on Monday.
Livent Co., will they grow despite some dips?
While the recent activity is catching eyes and sparking conversations among financial analysts about whether company growth is imminent or not; it is essential to keep in mind Livent Co.’s financial status. The company has a fifty-two week low of $18.26 and a fifty-two week high of $36.38. Its 50-day moving average is $22.38, while its two-hundred day moving average is $23.59
Livent’s debt-to-equity ratio currently stands at 0.16 with a current ratio of 4.23 and a quick ratio of 2.83 which suggests that the company may be financially capable of tackling any challenges it faces along the way.
According to reports, Livent Co.’s price-to-earnings-growth (PEG) ratio is at 0.39, which represents a relatively reasonable investment opportunity that could arise through constant growth over time based on market trends for lithium markets.
Moreover, Livent Co.’s beta has been recorded as being relatively high at around 1.81, indicating higher volatility in returns on investment despite a generally positive outlook on its future growth prospects.
While the recent activity from institutional investors might spike trading interest of clients with brokers, we advise our readers not to rely solely on this information as there are other factors to consider before looking into investing into Livent Co., or any other stock for that matter.
To take full advantage of any stock movements concerning Livent or others like it, proper research should be conducted by investors ahead of making any financial decisions that take adverse risks into account before choosing what moves and how they materialize them in their overall portfolio plans going forward.*
