Tommy Tuberville, a prominent figure in US politics known for his active stock trading, has consistently traded in large volumes while actively opposing the ban on congressional stock trading.
In October 2023, he made a notable move by purchasing call options for Louisiana-Pacific (NYSE: LPX) stock at a $70 price, expiring on May 17.
Tuberville’s investment in LPX has proved to be a financial triumph. The stock has surged by an impressive 62.56% since the purchase, resulting in a substantial 210% increase in the value of the call options.
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LPX earnings surprise proved lucrative for Tuberville
On May 8, Louisiana-Pacific reported quarterly earnings of $1.53 per share, surpassing the estimated $1.13 per share. This marks a significant improvement from earnings of $0.34 per share reported a year ago.
The earnings surprise stands at 35.40% for this quarter, following a surprise of 36.54% in the previous quarter when the company exceeded expectations by posting earnings of $0.71 per share, compared to an expected $0.52 per share.
LPX has exceeded consensus EPS estimates three times in the past four quarters.
As part of the Zacks Building Products—Wood industry, LPX generated revenues of $724 million for the quarter ended March 2024, surpassing the estimate by 6.96%. This represents 23% growth compared to revenues of $584 million reported a year ago.
LPX stock surged 20% in a day after earnings
With an impressive increase of 20.79% in the latest trading session, LPX stock is now trading at a $88.14 valuation, with gains of 19.40% extending in the previous five trading sessions.
On a YTD chart, LPX shares have added a substantial 26.40% to their valuation.
The Alabama Senator is certainly satisfied, especially considering that he sits on the Senate Committee on Forestry, which handles information directly tied to Louisiana-Pacific’s performance.
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