Traders Purchase Large Volume of Put Options on Lamb Weston (NYSE:LW)

Lamb Weston Holdings, Inc. (NYSE:LW - Get Free Report) was the recipient of some unusual options trading activity on Monday. Traders purchased 33,591 put options on the stock. This is an increase of 348% compared to the typical daily volume of 7,501 put options.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on LW shares. StockNews.com raised shares of Lamb Weston to a "sell" rating in a report on Monday. JPMorgan Chase & Co. increased their target price on shares of Lamb Weston from $68.00 to $78.00 and gave the stock a "neutral" rating in a report on Monday, December 16th. Barclays dropped their target price on shares of Lamb Weston from $87.00 to $69.00 and set an "overweight" rating on the stock in a report on Monday, December 23rd. Citigroup cut shares of Lamb Weston from a "buy" rating to a "neutral" rating and dropped their target price for the stock from $90.00 to $68.00 in a report on Friday, December 20th. Finally, Stifel Nicolaus dropped their target price on shares of Lamb Weston from $80.00 to $68.00 and set a "hold" rating on the stock in a report on Friday, December 20th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and five have issued a buy rating to the company. According to data from MarketBeat, Lamb Weston has an average rating of "Hold" and an average price target of $81.00.

Lamb Weston Price Performance

LW traded down $0.50 on Thursday, reaching $51.41. The company had a trading volume of 3,067,390 shares, compared to its average volume of 2,452,516. The company has a fifty day moving average of $60.47 and a 200-day moving average of $67.31. The company has a market capitalization of $7.33 billion, a P/E ratio of 20.32, a PEG ratio of 1.40 and a beta of 0.72. The company has a current ratio of 1.35, a quick ratio of 0.53 and a debt-to-equity ratio of 2.26. Lamb Weston has a one year low of $50.74 and a one year high of $107.50.

Lamb Weston (NYSE:LW - Get Free Report) last announced its earnings results on Thursday, December 19th. The specialty retailer reported $0.66 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.01 by ($0.35). The company had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.67 billion. Lamb Weston had a net margin of 5.80% and a return on equity of 27.82%. The business's quarterly revenue was down 7.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.45 EPS. As a group, equities research analysts anticipate that Lamb Weston will post 3.1 earnings per share for the current year.

Lamb Weston Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, February 28th. Investors of record on Friday, January 31st will be given a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a yield of 2.88%. The ex-dividend date is Friday, January 31st. This is a positive change from Lamb Weston's previous quarterly dividend of $0.36. Lamb Weston's dividend payout ratio is currently 58.50%.

Insider Activity at Lamb Weston

In related news, Director Robert A. Niblock purchased 3,000 shares of the business's stock in a transaction that occurred on Monday, January 13th. The shares were purchased at an average cost of $60.94 per share, with a total value of $182,820.00. Following the completion of the acquisition, the director now directly owns 26,406 shares of the company's stock, valued at approximately $1,609,181.64. The trade was a 12.82 % increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Charles A. Blixt purchased 1,200 shares of the business's stock in a transaction that occurred on Monday, December 23rd. The stock was bought at an average cost of $63.25 per share, for a total transaction of $75,900.00. Following the completion of the acquisition, the director now directly owns 22,982 shares of the company's stock, valued at $1,453,611.50. This represents a 5.51 % increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.72% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lamb Weston

Institutional investors and hedge funds have recently bought and sold shares of the business. West Oak Capital LLC lifted its holdings in Lamb Weston by 155.7% in the 4th quarter. West Oak Capital LLC now owns 450 shares of the specialty retailer's stock valued at $30,000 after acquiring an additional 274 shares during the last quarter. Putney Financial Group LLC acquired a new stake in Lamb Weston in the 4th quarter valued at about $34,000. Stonebridge Financial Group LLC acquired a new stake in Lamb Weston in the 4th quarter valued at about $35,000. SBI Securities Co. Ltd. acquired a new stake in Lamb Weston in the 4th quarter valued at about $36,000. Finally, Kennebec Savings Bank acquired a new stake in Lamb Weston in the 3rd quarter valued at about $39,000. 89.56% of the stock is owned by institutional investors and hedge funds.

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.