Lamb Weston (NYSE:LW) Reaches New 1-Year Low – Here’s Why

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

Analyst Ratings Changes

A number of analysts recently issued reports on LW shares. Sanford C. Bernstein assumed coverage on Lamb Weston in a research report on Tuesday, December 3rd. They issued a “market perform” rating and a $85.00 price target for the company. StockNews.com upgraded shares of Lamb Weston to a “sell” rating in a report on Monday, February 24th. 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 price target on the stock. 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, Jefferies Financial Group upped their target price on Lamb Weston from $80.00 to $95.00 and gave the company a “buy” rating in a research note on Tuesday, December 17th. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat.com, Lamb Weston currently has a consensus rating of “Hold” and a consensus target price of $81.00.

Lamb Weston Stock Performance

The firm’s fifty day moving average price is $60.05 and its 200 day moving average price is $67.27. The firm has a market cap of $7.14 billion, a P/E ratio of 19.79, a price-to-earnings-growth ratio of 1.40 and a beta of 0.72. The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.53 and a current ratio of 1.35.

Lamb Weston (NYSE:LW) last posted its earnings results 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 analysts’ expectations of $1.67 billion. During the same quarter in the prior year, the company earned $1.45 EPS. The firm’s quarterly revenue was down 7.5% on a year-over-year basis. Sell-side analysts expect that Lamb Weston Holdings, Inc. will post 3.1 EPS for the current fiscal year.

Lamb Weston Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, February 28th. Shareholders of record on Friday, January 31st were issued a $0.37 dividend. The ex-dividend date of this dividend was Friday, January 31st. This is an increase from Lamb Weston’s previous quarterly dividend of $0.36. This represents a $1.48 dividend on an annualized basis and a yield of 2.96%. Lamb Weston’s payout ratio is currently 58.50%.

Insider Buying and Selling at Lamb Weston

In other news, Director Robert A. Niblock bought 3,000 shares of the stock in a transaction on Monday, January 13th. The stock was bought at an average cost of $60.94 per share, for a total transaction of $182,820.00. Following the completion of the purchase, the director now directly owns 26,406 shares in the company, valued at approximately $1,609,181.64. The trade was a 12.82 % increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Charles A. Blixt purchased 1,200 shares of Lamb Weston stock in a transaction dated Monday, December 23rd. The shares were acquired at an average cost of $63.25 per share, for a total transaction of $75,900.00. Following the completion of the transaction, 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. Insiders own 0.72% of the company’s stock.

Institutional Investors Weigh In On Lamb Weston

A number of large investors have recently modified their holdings of the business. Kornitzer Capital Management Inc. KS boosted its stake 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 worth $1,214,000 after purchasing an additional 156 shares in the last quarter. Allworth Financial LP lifted 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 buying an additional 170 shares during the period. Bridges Investment Management Inc. grew its holdings in shares of Lamb Weston by 2.8% during the third quarter. Bridges Investment Management Inc. now owns 6,648 shares of the specialty retailer’s stock valued at $430,000 after buying an additional 181 shares during the last quarter. Coldstream Capital Management Inc. increased its position in shares of 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 acquiring an additional 186 shares during the period. Finally, Blair William & Co. IL raised its stake 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 worth $476,000 after acquiring an additional 219 shares during the last quarter. Hedge funds and other institutional investors own 89.56% of the company’s stock.

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.