Liquidity Services Receives “Hold” Rating Amid Positive Earnings Report

Liquidity Services (NASDAQ:LQDT) has been upgraded to a “hold” rating by Zacks Research, as confirmed in a report distributed to investors on November 20, 2023. This upgrade follows a series of assessments from various analysts regarding the company’s stock performance.

In a separate analysis, Barrington Research reaffirmed an “outperform” rating for Liquidity Services, setting a price target of $40.00. This announcement was made earlier in the week, on November 24. Additionally, Weiss Ratings issued a “hold (c)” rating on October 8, while Wall Street Zen downgraded the stock from “strong-buy” to “buy” on August 9. Currently, two equity research analysts have assigned a “buy” rating, while two others recommend holding the stock. According to data from MarketBeat.com, the average rating for Liquidity Services remains a “Moderate Buy,” with an average target price of $38.50.

Recent Financial Performance

Liquidity Services reported its quarterly earnings on November 20, revealing an earnings per share (EPS) of $0.37, surpassing analyst expectations of $0.29 by $0.08. The company generated revenue of $118.09 million, significantly higher than the consensus estimate of $100.86 million. The results indicate a return on equity of 20.75% and a net margin of 6.25%. Looking ahead, Liquidity Services has projected its Q1 2026 EPS guidance to fall between $0.250 and $0.350.

Insider Activity and Institutional Holdings

In insider news, Jaime Mateus-Tique, a director at Liquidity Services, sold 5,403 shares of the company on September 15. The shares were sold at an average price of $27.45, totaling approximately $148,312.35. Following this transaction, Mateus-Tique retains ownership of 164,562 shares, valued at about $4,517,226.90, marking a 3.18% reduction in ownership. This sale was recorded in a filing with the SEC.

Institutional investors have also been active, with hedge funds adjusting their stakes in Liquidity Services. Mirae Asset Global Investments Co. Ltd. acquired a new position in the third quarter, estimated at around $30,000. CWM LLC increased its holdings by 166.8% in the first quarter, bringing its total to 1,318 shares valued at $41,000 after an additional purchase of 824 shares. Other notable transactions include Wealth Enhancement Advisory Services LLC, which also acquired a new position worth approximately $44,000.

Overall, hedge funds and institutional investors now hold 71.15% of Liquidity Services’ stock, indicating strong institutional confidence in the company.

About Liquidity Services

Liquidity Services, Inc. operates e-commerce marketplaces, offering self-directed auction listing tools and value-added services both in the United States and internationally. The company is structured into four segments: GovDeals, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), and Machinio. Its platforms, including liquidation.com, facilitate the sale of surplus consumer goods and retail assets. The GovDeals marketplace enables local and state governments, as well as commercial entities in the U.S. and Canada, to sell surplus assets, while AllSurplus connects a global buyer base to assets from various marketplace networks.

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