Lamb Weston (NYSE:LW) Sets New 12-Month Low – What’s Next?

Lamb Weston Holdings, Inc. (NYSE:LW)’s share price hit a new 52-week low on Monday . The company traded as low as $50.12 and last traded at $50.20, with a volume of 1121313 shares traded. The stock had previously closed at $51.87.

Analysts Set New Price Targets

LW has been the subject of a number of research analyst reports. StockNews.com upgraded Lamb Weston to a “sell” rating in a report on Monday, February 24th. JPMorgan Chase & Co. boosted their price target on shares of Lamb Weston from $68.00 to $78.00 and gave the company a “neutral” rating in a research report on Monday, December 16th. Jefferies Financial Group increased their price objective on Lamb Weston from $80.00 to $95.00 and gave the stock a “buy” rating in a research report on Tuesday, December 17th. Sanford C. Bernstein started coverage on shares of Lamb Weston in a report on Tuesday, December 3rd. They issued a “market perform” rating and a $85.00 price target on the stock. Finally, Deutsche Bank Aktiengesellschaft initiated coverage on shares of Lamb Weston in a report on Thursday, December 12th. They set a “hold” rating and a $81.00 target price on the stock. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $81.00.

Lamb Weston Stock Down 3.5 %

The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.53 and a current ratio of 1.35. The company has a market capitalization of $7.14 billion, a PE ratio of 19.79, a P/E/G ratio of 1.40 and a beta of 0.72. The company’s 50-day moving average is $60.05 and its 200 day moving average is $67.27.

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

Lamb Weston Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 28th. Investors of record on Friday, January 31st were issued a $0.37 dividend. This represents a $1.48 annualized dividend and a yield of 2.96%. This is an increase from Lamb Weston’s previous quarterly dividend of $0.36. The ex-dividend date was Friday, January 31st. Lamb Weston’s dividend payout ratio (DPR) is presently 58.50%.

Insider Activity

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

Institutional Investors Weigh In On Lamb Weston

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. West Oak Capital LLC grew its position in shares of Lamb Weston by 155.7% during the fourth quarter. West Oak Capital LLC now owns 450 shares of the specialty retailer’s stock valued at $30,000 after purchasing an additional 274 shares in the last quarter. Putney Financial Group LLC bought a new stake in Lamb Weston in the 4th quarter worth approximately $34,000. Stonebridge Financial Group LLC purchased a new stake in shares of Lamb Weston during the 4th quarter worth approximately $35,000. SBI Securities Co. Ltd. bought a new position in shares of Lamb Weston during the 4th quarter valued at approximately $36,000. Finally, Kennebec Savings Bank bought a new stake in Lamb Weston in the third quarter worth $39,000. 89.56% of the stock is owned by hedge funds and other institutional investors.

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.