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

Lamb Weston Holdings, Inc. (NYSE:LW) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. 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 traded.

The specialty retailer reported $0.66 EPS for the quarter, missing the consensus estimate of $1.01 by ($0.35). Lamb Weston had a return on equity of 34.33% and a net margin of 9.57%. The firm had revenue of $1.60 billion for the quarter, compared to analysts’ expectations of $1.67 billion. During the same period in the previous 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 Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, February 28th. Investors of record on Friday, January 31st will be issued a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a yield of 2.38%. 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. Lamb Weston’s dividend payout ratio is presently 56.92%.

Analysts Set New Price Targets

LW has been the subject of several recent analyst reports. Sanford C. Bernstein assumed coverage on Lamb Weston in a research report on Tuesday, December 3rd. They set a “market perform” rating and a $85.00 target price for the company. TD Cowen boosted their price objective on Lamb Weston from $61.00 to $65.00 and gave the company a “hold” rating in a report on Tuesday, September 24th. Barclays upped their price objective on Lamb Weston from $70.00 to $74.00 and gave the company an “overweight” rating in a research report on Friday, October 4th. Wells Fargo & Company lifted their target price on Lamb Weston from $70.00 to $77.00 and gave the stock an “overweight” rating in a research report on Thursday, October 3rd. Finally, Citigroup cut shares of Lamb Weston from a “buy” rating to a “neutral” rating and cut their price target for the stock from $90.00 to $68.00 in a report on Friday. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Lamb Weston has an average rating of “Hold” and a consensus target price of $81.42.

Institutional Investors Weigh In On Lamb Weston

Large investors have recently modified their holdings of the business. City State Bank lifted its stake in shares of Lamb Weston by 56.2% during the 3rd quarter. City State Bank now owns 417 shares of the specialty retailer’s stock worth $27,000 after purchasing an additional 150 shares during the last quarter. Kornitzer Capital Management Inc. KS raised its holdings in Lamb Weston by 0.8% in the third quarter. Kornitzer Capital Management Inc. KS now owns 18,756 shares of the specialty retailer’s stock worth $1,214,000 after purchasing an additional 156 shares in the last quarter. Bridges Investment Management Inc. lifted its position in shares of Lamb Weston by 2.8% during the third quarter. Bridges Investment Management Inc. now owns 6,648 shares of the specialty retailer’s stock valued at $430,000 after buying an additional 181 shares during the last quarter. Coldstream Capital Management Inc. boosted its holdings in shares of Lamb Weston by 5.4% in the 3rd quarter. Coldstream Capital Management Inc. now owns 3,649 shares of the specialty retailer’s stock valued at $241,000 after buying an additional 186 shares in the last quarter. Finally, Sumitomo Mitsui DS Asset Management Company Ltd raised its stake in shares of Lamb Weston by 1.4% during the 2nd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 13,382 shares of the specialty retailer’s stock worth $1,125,000 after acquiring an additional 188 shares in the last quarter. Institutional investors own 89.56% of the company’s stock.

Lamb Weston Stock Performance

The stock has a market cap of $8.85 billion, a P/E ratio of 14.58, a price-to-earnings-growth ratio of 1.34 and a beta of 0.70. The company has a debt-to-equity ratio of 1.87, a quick ratio of 0.54 and a current ratio of 1.19. The firm’s 50 day moving average is $76.76 and its 200 day moving average is $72.58.

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.