Liquidity Services Receives New Ratings Amid Strong Earnings Report

Liquidity Services (NASDAQ:LQDT) has been upgraded to a “Hold” rating by Zacks Research, according to a report released to investors on Wednesday. This news follows a series of evaluations from various analysts who have recently assessed the company’s stock, highlighting a range of opinions on its performance.

Analysts have shown a mix of confidence and caution regarding Liquidity Services. Barrington Research reaffirmed an “outperform” rating with a price target of $40.00, while Weiss Ratings maintained a “hold (c)” rating. Additionally, Wall Street Zen adjusted its rating from “strong-buy” to “buy,” indicating a shift in sentiment. Currently, two analysts have assigned a Buy rating while another two have opted for a Hold rating. According to MarketBeat.com, the stock holds an average rating of “Moderate Buy” with a target price of $38.50.

Strong Quarterly Earnings Report

Liquidity Services recently announced its quarterly earnings on November 20, 2023. The company reported an earnings per share (EPS) of $0.37, surpassing analyst estimates of $0.29 by $0.08. Furthermore, the company achieved a revenue of $118.09 million, exceeding the consensus estimate of $100.86 million. The business also noted a return on equity of 20.75% and a net margin of 6.25%. Looking ahead, Liquidity Services has set its guidance for the first quarter of 2026 at $0.250-$0.350 EPS.

In a related development, Director Jaime Mateus-Tique sold 5,403 shares of Liquidity Services stock on September 15, 2023. The shares were sold at an average price of $27.45, totaling approximately $148,312.35. Post-transaction, Mateus-Tique retains 164,562 shares, valued at around $4,517,226.90, reflecting a 3.18% decrease in ownership. This transaction was filed with the Securities and Exchange Commission (SEC).

Institutional Investments Shift

Several hedge funds and institutional investors have recently adjusted their positions in Liquidity Services. Mirae Asset Global Investments Co. Ltd. acquired a new position worth approximately $30,000 during the third quarter. CWM LLC significantly increased its stake by 166.8%, now holding 1,318 shares valued at about $41,000 after acquiring an additional 824 shares. Wealth Enhancement Advisory Services LLC also entered a new position worth around $44,000.

Additionally, Quarry LP raised its stake by 38.0%, owning 2,006 shares worth $62,000 after buying 552 shares more. Tower Research Capital LLC TRC increased its holdings by 451.0%, now possessing 2,700 shares valued at $64,000. Collectively, hedge funds and institutional investors control 71.15% of the company’s stock.

Liquidity Services operates as a provider of e-commerce marketplaces, offering self-directed auction tools and value-added services both in the United States and internationally. The company serves through four key segments: GovDeals, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), and Machinio. Its marketplaces, including liquidation.com and GovDeals, facilitate the sale of surplus and salvage assets by various entities.

In summary, Liquidity Services has received a mix of ratings following its strong earnings report, with analysts weighing in on the company’s future potential. As the landscape of institutional investment changes, the company remains a focal point for investors looking for growth in the e-commerce sector.