Lamb Weston (NYSE:LW) Sets New 1-Year Low – What’s Next?

Shares of Lamb Weston Holdings, Inc. (NYSE:LW) hit a new 52-week low on Monday . The stock traded as low as $52.76 and last traded at $53.06, with a volume of 2264379 shares changing hands. The stock had previously closed at $55.80.

Wall Street Analysts Forecast Growth

LW has been the topic of a number of recent analyst reports. Stifel Nicolaus lowered their price target on shares of Lamb Weston from $80.00 to $68.00 and set a “hold” rating on the stock in a report on Friday, December 20th. Sanford C. Bernstein initiated coverage on shares of Lamb Weston in a research note on Tuesday, December 3rd. They set a “market perform” rating and a $85.00 target price on the stock. JPMorgan Chase & Co. lifted their price target on Lamb Weston from $68.00 to $78.00 and gave the company a “neutral” rating in a research note on Monday, December 16th. Deutsche Bank Aktiengesellschaft started coverage on Lamb Weston in a report on Thursday, December 12th. They issued a “hold” rating and a $81.00 price objective on the stock. Finally, Citigroup downgraded Lamb Weston from a “buy” rating to a “neutral” rating and reduced their target price for the stock from $90.00 to $68.00 in a research note on Friday, December 20th. Eight analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $81.00.

Lamb Weston Price Performance

The stock has a fifty day simple moving average of $62.21 and a 200-day simple moving average of $67.53. The company has a market capitalization of $7.44 billion, a PE ratio of 20.61, a P/E/G 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 (NYSE:LW) last released its quarterly earnings data on Thursday, December 19th. The specialty retailer reported $0.66 earnings per share for the quarter, missing analysts’ consensus estimates of $1.01 by ($0.35). Lamb Weston had a return on equity of 27.82% and a net margin of 5.80%. The company had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.67 billion. During the same period in the previous year, the business posted $1.45 EPS. The firm’s revenue for the quarter was down 7.5% compared to the same quarter last year. Equities analysts anticipate that Lamb Weston Holdings, Inc. will post 3.1 earnings per share for the current year.

Lamb Weston Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 28th. Stockholders of record on Friday, January 31st will be issued a $0.37 dividend. This is an increase from Lamb Weston’s previous quarterly dividend of $0.36. This represents a $1.48 annualized dividend and a dividend yield of 2.84%. The ex-dividend date of this dividend is Friday, January 31st. Lamb Weston’s dividend payout ratio is presently 58.50%.

Insider Buying and Selling

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

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Alberta Investment Management Corp acquired a new position in shares of Lamb Weston in the fourth quarter worth $2,641,000. Atria Wealth Solutions Inc. acquired a new stake in shares of Lamb Weston during the 4th quarter worth about $2,850,000. Leeward Investments LLC MA grew its holdings in shares of Lamb Weston by 41.5% during the fourth quarter. Leeward Investments LLC MA now owns 156,473 shares of the specialty retailer’s stock worth $10,457,000 after buying an additional 45,904 shares in the last quarter. HB Wealth Management LLC raised its position in shares of Lamb Weston by 6.5% in the fourth quarter. HB Wealth Management LLC now owns 13,343 shares of the specialty retailer’s stock valued at $892,000 after buying an additional 817 shares during the last quarter. Finally, Nicola Wealth Management LTD. purchased a new position in shares of Lamb Weston during the third quarter valued at approximately $6,474,000. 89.56% of the stock is currently owned by institutional investors and hedge funds.

About Lamb Weston

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.