Live Oak Bancshares (LOB) AI Stock Analysis

• Market Cap: $1.46B
• Dividend Yield: 0.39%
• Average Volume (3M): 235.93K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 1.28
• Revenue Growth: 10.13%
• EPS Growth: -50.08%
• Country: US
• Employees: 1,008
• Sector: Financial
• Sector Strength: 71
• Industry: Banks - Regional
• EPS (TTM): 0.51
• Shares Outstanding: 45,731,300
• 10 Day Avg. Volume: 211,741
• 30 Day Avg. Volume: 235,929
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 2.05
• Enterprise Value/Gross Profit: 1.95
• Enterprise Value/Ebitda: 16.98
• 1Y Price Target: $36.50
• Price Target Upside: 14.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 78 Outperform
• Price Target: $36.00 ▲(13.10% Upside)

Live Oak Bancshares demonstrates strong financial performance and positive earnings call sentiment, which are the most significant factors. Technical analysis and valuation present moderate risks, while recent corporate events support strategic growth.

Live Oak Bancshares Business Overview & Revenue Model

Company Description

Live Oak Bancshares, Inc. is a bank holding company headquartered in Wilmington, North Carolina. It primarily operates through its wholly-owned subsidiary, Live Oak Bank, which focuses on providing financial services to small businesses across various sectors, including healthcare, agriculture, and commercial industries. The company offers a range of products and services such as business loans, deposit accounts, and treasury management solutions, with a strong emphasis on technology-driven banking solutions to enhance customer experience and operational efficiency.

How the Company Makes Money

Live Oak Bancshares generates revenue primarily through interest income from loans provided to small businesses, which is a significant component of its earnings. The company specializes in lending to niche industries, allowing it to charge competitive interest rates on its loans. Additionally, Live Oak earns non-interest income through fees associated with its deposit accounts, loan origination, and servicing. The bank's revenue model is further supported by its investment in technology that streamlines the lending process, reducing costs and increasing efficiency. Strategic partnerships with industry-specific organizations also contribute to its revenue by enhancing its market reach and customer acquisition efforts.

Live Oak Bancshares Financial Statement Overview

Summary

Live Oak Bancshares shows strong revenue growth and a robust balance sheet with no debt, but faces challenges in cash flow generation due to negative operating and free cash flows. The company is financially stable but needs to address cash flow issues for long-term growth.

Income Statement

Live Oak Bancshares has demonstrated a strong improvement in revenue with a significant increase from 2022 to 2023. The gross profit margin remains robust at 100%, indicating that the company efficiently controls its cost of goods sold. However, the net profit margin is lower, which suggests higher operating or other expenses affecting profitability. The EBIT margin is strong, highlighting effective management of operating expenses.

Balance Sheet

The balance sheet is solid with a high equity ratio, indicating financial stability and lower reliance on debt. The company has no total debt as of the latest report, which is a positive indicator of financial health. Return on equity is healthy, reflecting effective use of shareholder funds to generate income. The company's substantial cash reserves add to its financial stability.

Cash Flow

The cash flow statement shows some areas of concern, mainly the negative operating and free cash flows in the latest period. However, the company has shown an ability to generate significant cash from financing activities, which may provide some buffer. The negative free cash flow growth rate suggests potential challenges in cash generation from core operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	812.37M	119.49M	391.86M	441.99M	284.62M
Gross Profit	812.37M	119.49M	391.86M	441.99M	284.62M
EBITDA	0.00	104.10M	231.11M	232.15M	69.08M
Net Income	77.47M	73.90M	176.21M	167.00M	59.54M
Balance Sheet
Total Assets	12.94B	11.27B	9.86B	8.21B	7.87B
Cash, Cash Equivalents and Short-Term Investments	1.86B	89.52M	1.30B	1.10B	1.05B
Total Debt	112.82M	23.35M	133.20M	318.29M	1.54B
Total Liabilities	11.94B	10.37B	9.04B	7.50B	7.30B
Stockholders Equity	999.03M	902.67M	811.03M	715.13M	567.85M
Cash Flow
Free Cash Flow	487.16M	573.23M	80.73M	-122.80M	-293.98M
Operating Cash Flow	536.47M	620.07M	124.48M	-119.72M	-272.99M
Investing Cash Flow	-2.08B	-1.77B	-1.44B	-149.80M	-2.61B
Financing Cash Flow	1.57B	1.32B	1.53B	154.95M	2.98B

Live Oak Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOB, the sentiment is Positive. The current price of 31.83 is below the 20-day moving average (MA) of 31.92, above the 50-day MA of 30.49, and below the 200-day MA of 33.76, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 52.98 is Neutral, neither overbought nor oversold. The STOCH value of 27.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOB.

Live Oak Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOB	78 Outperform	$1.46B	26.05	5.54%	0.39%	10.13%	-50.08%
NBHC	77 Outperform	$1.39B	11.79	9.15%	3.18%	0.60%	-6.31%
STBA	71 Outperform	$1.39B	10.69	9.47%	3.71%	-0.57%	-3.92%
CCB	69 Neutral	$1.49B	30.48	12.23%	―	9.22%	18.60%
Sector *	67 Neutral	$17.22B	11.28	10.45%	3.94%	10.30%	1.07%
HOPE	64 Neutral	$1.28B	28.02	1.92%	5.62%	-12.55%	-59.97%
TFIN	61 Neutral	$1.22B	117.40	1.52%	―	2.02%	-60.54%

Live Oak Bancshares Corporate Events

Live Oak Bancshares Appoints Jeffrey Lunsford to Board

On August 12, 2025, Live Oak Bancshares appointed Jeffrey W. Lunsford to its board of directors and to the board of Live Oak Bank. Lunsford, a seasoned technology executive with significant experience in fintech and software companies, is expected to bring valuable expertise as Live Oak aims to innovate in the financial services sector. His appointment is seen as a strategic move to bolster the company’s mission of becoming a leading small business bank in America.

The most recent analyst rating on (LOB) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Live Oak Bancshares stock, see the LOB Stock Forecast page.

Live Oak Bancshares Completes Preferred Stock Offering

On August 4, 2025, Live Oak Bancshares, Inc. announced the completion of its underwritten offering of 4,000,000 depositary shares, each representing a 1/40th interest in a share of its 8.375% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock. This offering, which was made under a shelf registration statement filed with the SEC, resulted in net proceeds of approximately $96,150,000 for the company. The issuance of these shares marks a significant financial maneuver for Live Oak, potentially enhancing its capital structure and market positioning.

The most recent analyst rating on (LOB) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Live Oak Bancshares stock, see the LOB Stock Forecast page.

Live Oak Bancshares Announces Public Offering Pricing

On July 28, 2025, Live Oak Bancshares, Inc. announced the pricing of an underwritten public offering of 4,000,000 depositary shares, each representing a 1/40th ownership interest in the company’s Series A Preferred Stock. The offering is expected to close on or about August 4, 2025, with net proceeds intended for general corporate purposes, including supporting balance sheet growth and enhancing capital position.

The most recent analyst rating on (LOB) stock is a Hold with a $46.00 price target. To see the full list of analyst forecasts on Live Oak Bancshares stock, see the LOB Stock Forecast page.

Live Oak Bancshares Holds Annual Shareholder Meeting

On May 20, 2025, Live Oak Bancshares, Inc. held its Annual Meeting of Shareholders where several key decisions were made. Shareholders elected members to the Board of Directors, approved executive compensation, and ratified KPMG LLP as the company’s independent auditors for 2025. Additionally, it was decided that advisory votes on executive compensation will be held annually, aligning with the Board’s recommendation.

The most recent analyst rating on (LOB) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Live Oak Bancshares stock, see the LOB Stock Forecast page.

Live Oak Bancshares Declares Cash Dividend Announcement

On May 20, 2025, Live Oak Bancshares, Inc. announced that its Board of Directors declared a cash dividend of $0.03 per share. This dividend is payable on June 17, 2025, to shareholders of record as of June 3, 2025, reflecting the company’s ongoing commitment to providing value to its investors.

The most recent analyst rating on (LOB) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Live Oak Bancshares stock, see the LOB Stock Forecast page.