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

Lamb Weston Holdings, Inc. (NYSE:LW) gapped down prior to trading on Thursday following a dissappointing 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). The firm had revenue of $1.60 billion during the quarter, compared to analysts’ expectations of $1.67 billion. Lamb Weston had a return on equity of 34.33% and a net margin of 9.57%. Lamb Weston’s quarterly revenue was down 7.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.45 earnings per share.

Lamb Weston Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, November 29th. Investors of record on Friday, November 1st were issued a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.22%. The ex-dividend date of this dividend was Friday, November 1st. Lamb Weston’s dividend payout ratio (DPR) is presently 33.80%.

Wall Street Analyst Weigh In

Several equities analysts have commented on LW shares. Jefferies Financial Group increased their price objective on shares of Lamb Weston from $80.00 to $95.00 and gave the company a “buy” rating in a research report on Tuesday. Wells Fargo & Company lifted their price target on Lamb Weston from $70.00 to $77.00 and gave the stock an “overweight” rating in a research report on Thursday, October 3rd. TD Cowen raised their target price on shares of Lamb Weston from $61.00 to $65.00 and gave the stock a “hold” rating in a report on Tuesday, September 24th. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Lamb Weston in a research note on Thursday, December 12th. They issued a “hold” rating and a $81.00 price objective for the company. Finally, Bank of America raised their target price on shares of Lamb Weston from $68.00 to $80.00 and gave the company a “neutral” rating in a research report on Monday, October 21st. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and six have assigned a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $84.25.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Synovus Financial Corp increased its holdings in Lamb Weston by 22.5% in the third quarter. Synovus Financial Corp now owns 4,075 shares of the specialty retailer’s stock valued at $264,000 after buying an additional 749 shares in the last quarter. Tidal Investments LLC raised its holdings in Lamb Weston by 52.0% in the 3rd quarter. Tidal Investments LLC now owns 35,089 shares of the specialty retailer’s stock worth $2,272,000 after purchasing an additional 12,010 shares during the period. Wilmington Savings Fund Society FSB purchased a new position in Lamb Weston during the third quarter worth approximately $63,000. Toronto Dominion Bank grew its holdings in Lamb Weston by 49.5% in the third quarter. Toronto Dominion Bank now owns 65,331 shares of the specialty retailer’s stock valued at $4,230,000 after purchasing an additional 21,639 shares during the period. Finally, Coldstream Capital Management Inc. raised its stake in shares of Lamb Weston by 5.4% during the 3rd quarter. Coldstream Capital Management Inc. now owns 3,649 shares of the specialty retailer’s stock worth $241,000 after buying an additional 186 shares during the period. 89.56% of the stock is currently owned by hedge funds and other institutional investors.

Lamb Weston Stock Down 17.2 %

The business’s 50 day moving average is $77.11 and its 200-day moving average is $72.83. The stock has a market cap of $9.24 billion, a price-to-earnings ratio of 15.21, a PEG 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.

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.