Traders Buy Large Volume of Put Options on Lamb Weston (NYSE:LW)

Lamb Weston Holdings, Inc. (NYSE:LW) saw unusually large options trading on Monday. Traders purchased 33,591 put options on the stock. This represents an increase of 348% compared to the typical volume of 7,501 put options.

Lamb Weston Stock Down 4.5 %

Shares of Lamb Weston stock traded down $2.53 on Monday, reaching $53.27. 1,514,510 shares of the company were exchanged, compared to its average volume of 2,219,294. The company has a market capitalization of $7.60 billion, a price-to-earnings ratio of 21.04, a PEG ratio of 1.40 and a beta of 0.72. The company has a current ratio of 1.35, a quick ratio of 0.53 and a debt-to-equity ratio of 2.26. Lamb Weston has a one year low of $52.99 and a one year high of $107.50. The company has a 50-day moving average of $62.21 and a 200 day moving average of $67.53.

Lamb Weston (NYSE:LW) last posted its quarterly earnings results on Thursday, December 19th. The specialty retailer reported $0.66 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.01 by ($0.35). Lamb Weston had a return on equity of 27.82% and a net margin of 5.80%. The firm had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.67 billion. During the same period last year, the company posted $1.45 earnings per share. The business’s revenue was down 7.5% compared to the same quarter last year. On average, equities research analysts forecast that Lamb Weston will post 3.1 earnings per share for the current year.

Lamb Weston Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 28th. Shareholders of record on Friday, January 31st will be given a dividend of $0.37 per share. This represents a $1.48 dividend on an annualized basis and a yield of 2.78%. The ex-dividend date of this dividend is Friday, January 31st. This is an increase from Lamb Weston’s previous quarterly dividend of $0.36. Lamb Weston’s payout ratio is 58.50%.

Insider Transactions at Lamb Weston

In other Lamb Weston news, Director Robert A. Niblock bought 3,000 shares of the stock in a transaction that occurred on Monday, January 13th. The stock was acquired at an average cost of $60.94 per share, with a total value of $182,820.00. Following the purchase, the director now owns 26,406 shares in the company, valued at $1,609,181.64. This trade represents a 12.82 % increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Charles A. Blixt purchased 1,200 shares of the business’s stock in a transaction on Monday, December 23rd. The stock was bought at an average cost of $63.25 per share, for a total transaction of $75,900.00. Following the purchase, the director now owns 22,982 shares of the company’s stock, valued at approximately $1,453,611.50. This represents a 5.51 % increase in their position. The disclosure for this purchase can be found here. Corporate insiders own 0.72% of the company’s stock.

Institutional Trading of Lamb Weston

Several institutional investors and hedge funds have recently bought and sold shares of the business. Kornitzer Capital Management Inc. KS raised its holdings in Lamb Weston by 0.8% in the 3rd quarter. Kornitzer Capital Management Inc. KS now owns 18,756 shares of the specialty retailer’s stock valued at $1,214,000 after acquiring an additional 156 shares during the period. Allworth Financial LP increased its stake in shares of Lamb Weston by 16.1% during the fourth quarter. Allworth Financial LP now owns 1,223 shares of the specialty retailer’s stock worth $74,000 after purchasing an additional 170 shares during the period. Bridges Investment Management Inc. lifted its holdings in Lamb Weston by 2.8% during the 3rd quarter. Bridges Investment Management Inc. now owns 6,648 shares of the specialty retailer’s stock worth $430,000 after purchasing an additional 181 shares during the last quarter. Coldstream Capital Management Inc. boosted its stake in Lamb Weston by 5.4% in the 3rd quarter. Coldstream Capital Management Inc. now owns 3,649 shares of the specialty retailer’s stock valued at $241,000 after purchasing an additional 186 shares during the period. Finally, Blair William & Co. IL grew its holdings in Lamb Weston by 3.2% in the 4th quarter. Blair William & Co. IL now owns 7,130 shares of the specialty retailer’s stock valued at $476,000 after buying an additional 219 shares in the last quarter. Institutional investors own 89.56% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on LW. Barclays dropped their price objective on shares of Lamb Weston from $87.00 to $69.00 and set an “overweight” rating on the stock in a report on Monday, December 23rd. Deutsche Bank Aktiengesellschaft assumed coverage on Lamb Weston in a research note on Thursday, December 12th. They issued a “hold” rating and a $81.00 price target on the stock. JPMorgan Chase & Co. upped their price objective on Lamb Weston from $68.00 to $78.00 and gave the stock a “neutral” rating in a research report on Monday, December 16th. Citigroup lowered Lamb Weston from a “buy” rating to a “neutral” rating and dropped their target price for the company from $90.00 to $68.00 in a research report on Friday, December 20th. Finally, Sanford C. Bernstein initiated coverage on Lamb Weston in a research note on Tuesday, December 3rd. They issued a “market perform” rating and a $85.00 target price on the stock. Eight investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat, Lamb Weston presently has a consensus rating of “Hold” and a consensus target price of $81.00.

Lamb Weston Company Profile

Lamb Weston Holdings, Inc produces, distributes, and markets frozen potato products worldwide. The company operates through four segments: Global, Foodservice, Retail, and Other. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels.