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

Lamb Weston Holdings, Inc. (NYSE:LW) shares gapped up before the market opened on Thursday following a better than expected earnings announcement. 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 EPS for the quarter, beating analysts’ consensus estimates of $0.88 by $0.22. Lamb Weston had a return on equity of 27.82% and a net margin of 5.80%. The company had revenue of $1.52 billion during the quarter, compared to analysts’ expectations of $1.50 billion. During the same period last year, the business posted $1.20 earnings per share. The firm’s revenue was up 4.3% compared to the same quarter last year.

Lamb Weston Dividend Announcement

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

Analyst Ratings Changes

Several research firms have recently commented on LW. StockNews.com upgraded shares of Lamb Weston to a “sell” rating in a research note on Monday, February 24th. Citigroup cut Lamb Weston from a “buy” rating to a “neutral” rating and lowered their price target for the stock from $90.00 to $68.00 in a research report on Friday, December 20th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and set a $57.00 price target on shares of Lamb Weston in a research note on Wednesday, March 19th. JPMorgan Chase & Co. raised their price objective on Lamb Weston from $68.00 to $78.00 and gave the stock a “neutral” rating in a research note on Monday, December 16th. Finally, Wells Fargo & Company dropped their target price on Lamb Weston from $72.00 to $66.00 and set an “overweight” rating on the stock in a research report on Wednesday. One analyst has rated the stock with a sell rating, eight have assigned a hold rating and four have assigned a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $73.55.

Insider Buying and Selling

In other Lamb Weston news, Director Robert A. Niblock purchased 3,000 shares of Lamb Weston stock in a transaction that occurred on Monday, January 13th. The stock was bought at an average price of $60.94 per share, with a total value of $182,820.00. Following the acquisition, the director now owns 26,406 shares of the company’s stock, valued at $1,609,181.64. This trade represents a 12.82 % increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 0.72% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in LW. Capital Research Global Investors purchased a new stake in Lamb Weston in the 4th quarter worth $423,270,000. Norges Bank acquired a new stake in shares of Lamb Weston in the fourth quarter valued at about $96,736,000. JANA Partners Management LP increased its stake in shares of Lamb Weston by 22.3% during the fourth quarter. JANA Partners Management LP now owns 7,131,339 shares of the specialty retailer’s stock worth $476,587,000 after purchasing an additional 1,302,585 shares in the last quarter. Continental Grain Co. acquired a new position in shares of Lamb Weston during the 4th quarter worth about $63,786,000. Finally, Boston Partners lifted its stake in Lamb Weston by 26.8% in the 4th quarter. Boston Partners now owns 3,477,165 shares of the specialty retailer’s stock valued at $232,330,000 after buying an additional 735,901 shares in the last quarter. 89.56% of the stock is owned by institutional investors and hedge funds.

Lamb Weston Trading Up 8.2 %

The company has a 50 day simple moving average of $55.27 and a 200 day simple moving average of $65.65. The company has a market capitalization of $8.36 billion, a PE 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.

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.