Lamb Weston (NYSE:LW) Trading Up 2.5% - Time to Buy?

Lamb Weston Holdings, Inc. (NYSE:LW - Get Free Report)'s share price rose 2.5% during mid-day trading on Friday . The stock traded as high as $67.01 and last traded at $66.94. Approximately 204,638 shares traded hands during mid-day trading, a decline of 92% from the average daily volume of 2,532,862 shares. The stock had previously closed at $65.28.

Wall Street Analysts Forecast Growth

LW has been the topic of several research analyst reports. Deutsche Bank Aktiengesellschaft started coverage on Lamb Weston in a research note on Thursday, December 12th. They set a "hold" rating and a $81.00 target price on the stock. Sanford C. Bernstein started coverage on shares of Lamb Weston in a research note on Tuesday, December 3rd. They issued a "market perform" rating and a $85.00 price objective on the stock. TD Cowen increased their target price on shares of Lamb Weston from $61.00 to $65.00 and gave the stock a "hold" rating in a research report on Tuesday, September 24th. Citigroup cut shares of Lamb Weston from a "buy" rating to a "neutral" rating and lowered their price target for the company from $90.00 to $68.00 in a report on Friday, December 20th. Finally, Bank of America increased their price objective on Lamb Weston from $68.00 to $80.00 and gave the stock a "neutral" rating in a report on Monday, October 21st. One 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's stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $81.00.

Lamb Weston Price Performance

The firm has a market cap of $9.56 billion, a P/E ratio of 15.73, a price-to-earnings-growth ratio of 1.42 and a beta of 0.70. The stock's 50-day moving average is $76.20 and its 200-day moving average is $71.98. The company has a quick ratio of 0.54, a current ratio of 1.19 and a debt-to-equity ratio of 1.87.

Lamb Weston (NYSE:LW - Get Free Report) last released 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). The firm had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.67 billion. Lamb Weston had a return on equity of 34.33% and a net margin of 9.57%. The firm's quarterly revenue was down 7.5% compared to the same quarter last year. During the same period last year, the business earned $1.45 earnings per share. As a group, equities analysts anticipate that Lamb Weston Holdings, Inc. will post 4.26 EPS for the current fiscal year.

Lamb Weston Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 28th. Shareholders of record on Friday, January 31st will be issued a dividend of $0.37 per share. This is an increase from Lamb Weston's previous quarterly dividend of $0.36. The ex-dividend date of this dividend is Friday, January 31st. This represents a $1.48 annualized dividend and a yield of 2.21%. Lamb Weston's dividend payout ratio is currently 58.50%.

Insiders Place Their Bets

In related news, Director Charles A. Blixt purchased 1,200 shares of the firm's stock in a transaction on Monday, December 23rd. The stock was purchased at an average cost of $63.25 per share, for a total transaction of $75,900.00. Following the completion of the purchase, the director now directly owns 22,982 shares in the company, valued at $1,453,611.50. This trade represents a 5.51 % increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.72% of the company's stock.

Institutional Investors Weigh In On Lamb Weston

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Southpoint Capital Advisors LP bought a new position in shares of Lamb Weston during the 3rd quarter worth approximately $129,480,000. Clarkston Capital Partners LLC raised its holdings in shares of Lamb Weston by 108.7% in 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 purchasing an additional 1,618,570 shares during the last quarter. Massachusetts Financial Services Co. MA bought a new position in shares of Lamb Weston during the 3rd quarter worth approximately $86,883,000. TPG GP A LLC boosted its position in Lamb Weston by 74.4% in the second quarter. TPG GP A LLC now owns 2,924,230 shares of the specialty retailer's stock worth $245,869,000 after purchasing an additional 1,247,206 shares during the last quarter. Finally, Marshall Wace LLP grew its position in Lamb Weston by 78.5% during the second quarter. Marshall Wace LLP now owns 1,888,556 shares of the specialty retailer's stock valued at $158,790,000 after buying an additional 830,511 shares during the period. 89.56% of the stock is currently owned by institutional investors.

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.