Lamb Weston (NYSE:LW) Shares Gap Down Following Weak Earnings

Lamb Weston Holdings, Inc. (NYSE:LW)’s stock price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $78.22, but opened at $65.96. Lamb Weston shares last traded at $65.34, with a volume of 1,796,800 shares changing hands.

The specialty retailer reported $0.66 EPS for the quarter, missing analysts’ consensus estimates of $1.01 by ($0.35). Lamb Weston had a net margin of 9.57% and a return on equity of 34.33%. The business had revenue of $1.60 billion during the quarter, compared to analysts’ expectations of $1.67 billion. During the same quarter last year, the firm earned $1.45 earnings per share. The firm’s quarterly revenue was down 7.5% compared to the same quarter last year.

Lamb Weston Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, November 29th. Stockholders of record on Friday, November 1st were given a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 2.30%. The ex-dividend date was Friday, November 1st. Lamb Weston’s payout ratio is presently 33.80%.

Analyst Upgrades and Downgrades

A number of research firms have commented on LW. JPMorgan Chase & Co. upped their target price on shares of Lamb Weston from $68.00 to $78.00 and gave the company a “neutral” rating in a research report on Monday. Jefferies Financial Group upped their target price on shares of Lamb Weston from $80.00 to $95.00 and gave the stock a “buy” rating in a research note on Tuesday. Stifel Nicolaus boosted their price target on shares of Lamb Weston from $65.00 to $80.00 and gave the stock a “hold” rating in a research note on Friday, October 25th. Deutsche Bank Aktiengesellschaft started coverage on Lamb Weston in a research note on Thursday, December 12th. They issued a “hold” rating and a $81.00 price objective on the stock. Finally, Wells Fargo & Company raised their price target on Lamb Weston from $70.00 to $77.00 and gave the company an “overweight” rating in a research note on Thursday, October 3rd. One analyst has rated the stock with a sell rating, seven have given a hold rating and six have given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $84.25.

Hedge Funds Weigh In On Lamb Weston

Several institutional investors have recently modified their holdings of LW. Nicola Wealth Management LTD. bought a new stake in shares of Lamb Weston during the third quarter valued at approximately $6,474,000. Susquehanna Fundamental Investments LLC acquired a new position in shares of Lamb Weston during the 2nd quarter valued at $3,279,000. Clarkston Capital Partners LLC boosted its stake in Lamb Weston by 108.7% during the third quarter. Clarkston Capital Partners LLC now owns 3,107,929 shares of the specialty retailer’s stock valued at $201,207,000 after buying an additional 1,618,570 shares in the last quarter. Citigroup Inc. grew its stake in shares of Lamb Weston by 39.3% in the 3rd quarter. Citigroup Inc. now owns 156,242 shares of the specialty retailer’s stock worth $10,115,000 after purchasing an additional 44,057 shares during the last quarter. Finally, First Financial Bankshares Inc bought a new stake in Lamb Weston during the third quarter worth approximately $6,506,000. Institutional investors own 89.56% of the company’s stock.

Lamb Weston Price Performance

The company has a current ratio of 1.19, a quick ratio of 0.54 and a debt-to-equity ratio of 1.87. The company has a market cap of $8.91 billion, a price-to-earnings ratio of 14.67, a P/E/G ratio of 1.34 and a beta of 0.70. The business has a 50-day moving average price of $76.94 and a 200 day moving average price of $72.75.

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.