Lamb Weston (NYSE:LW) Shares Gap Up After Strong Earnings

Lamb Weston Holdings, Inc. (NYSE:LW) shares gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $54.15, but opened at $59.94. Lamb Weston shares last traded at $58.76, with a volume of 1,305,322 shares traded.

The specialty retailer reported $1.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.88 by $0.22. The business had revenue of $1.52 billion for the quarter, compared to the consensus estimate of $1.50 billion. Lamb Weston had a return on equity of 27.82% and a net margin of 5.80%. The company’s quarterly revenue was up 4.3% compared to the same quarter last year. During the same period in the prior year, the business posted $1.20 earnings per share.

Lamb Weston Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 30th. Investors of record on Friday, May 2nd will be given a $0.37 dividend. The ex-dividend date is Friday, May 2nd. This represents a $1.48 dividend on an annualized basis and a yield of 2.52%. Lamb Weston’s dividend payout ratio is presently 58.50%.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on LW shares. Barclays lowered their target price on shares of Lamb Weston from $87.00 to $69.00 and set an “overweight” rating for the company in a report on Monday, December 23rd. Wells Fargo & Company reduced their price objective on shares of Lamb Weston from $72.00 to $66.00 and set an “overweight” rating on the stock in a research report on Wednesday. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $57.00 price target on shares of Lamb Weston in a report on Wednesday, March 19th. Citigroup lowered Lamb Weston from a “buy” rating to a “neutral” rating and decreased their price target for the stock from $90.00 to $68.00 in a research note on Friday, December 20th. Finally, JPMorgan Chase & Co. upped their price objective on Lamb Weston from $68.00 to $78.00 and gave the company a “neutral” rating in a research report on Monday, December 16th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and four have given a buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $73.55.

Insider Activity at Lamb Weston

In other Lamb Weston news, Director Robert A. Niblock acquired 3,000 shares of the company’s 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 purchase, the director now 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 transaction was disclosed in a document filed with the SEC, which can be accessed through this link. 0.72% of the stock is currently owned by corporate insiders.

Institutional Trading of Lamb Weston

Hedge funds have recently bought and sold shares of the stock. Alberta Investment Management Corp bought a new position in shares of Lamb Weston in the 4th quarter worth $2,641,000. Atria Wealth Solutions Inc. purchased a new stake in shares of Lamb Weston during the fourth quarter valued at about $2,850,000. Leeward Investments LLC MA lifted its position 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 valued at $10,457,000 after buying an additional 45,904 shares during the last quarter. HB Wealth Management LLC boosted its holdings in shares of Lamb Weston by 6.5% in the 4th 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 in the last quarter. Finally, Charles Schwab Investment Management Inc. grew its position in shares of Lamb Weston by 1.3% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,229,600 shares of the specialty retailer’s stock worth $82,174,000 after buying an additional 16,092 shares during the last quarter. Hedge funds and other institutional investors own 89.56% of the company’s stock.

Lamb Weston Stock Performance

The stock has a market cap of $8.36 billion, a P/E ratio of 23.16, a price-to-earnings-growth ratio of 1.40 and a beta of 0.76. 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 firm’s 50 day moving average is $55.27 and its 200 day moving average is $65.65.

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.