Alberta Investment Management Corp Reduces Position in Lamb Weston $LW

Key Points

• Alberta Investment Management Corp cut its Lamb Weston stake by 41.4% in the fourth quarter, selling 148,400 shares and leaving it with 210,000 shares valued at about $8.8 million.
• Lamb Weston reported better-than-expected quarterly results, posting EPS of $0.72 versus estimates of $0.61 and revenue of $1.56 billion versus expected $1.49 billion, though earnings were down from a year earlier.
• The company also paid a quarterly dividend of $0.38 per share (3.4% annualized yield), while analysts currently rate the stock a consensus Hold with an average price target of $47.82.

Alberta Investment Management Corp decreased its position in Lamb Weston (NYSE:LW - Free Report) by 41.4% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 210,000 shares of the specialty retailer's stock after selling 148,400 shares during the period. Alberta Investment Management Corp owned approximately 0.15% of Lamb Weston worth $8,797,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors have also added to or reduced their stakes in the company. Norges Bank purchased a new position in Lamb Weston during the 4th quarter worth approximately $125,662,000. M&T Bank Corp raised its stake in shares of Lamb Weston by 45,177.0% during the 4th quarter. M&T Bank Corp now owns 2,835,245 shares of the specialty retailer's stock valued at $118,768,000 after buying an additional 2,828,983 shares during the last quarter. Ion Asset Management Ltd. acquired a new position in shares of Lamb Weston in the 2nd quarter valued at about $84,379,000. SG Americas Securities LLC lifted its holdings in shares of Lamb Weston by 2,682.3% in the 4th quarter. SG Americas Securities LLC now owns 801,708 shares of the specialty retailer's stock valued at $33,584,000 after buying an additional 772,893 shares during the period. Finally, Capital Research Global Investors boosted its stake in shares of Lamb Weston by 46.3% in the third quarter. Capital Research Global Investors now owns 2,150,000 shares of the specialty retailer's stock worth $124,872,000 after buying an additional 680,000 shares during the last quarter. Hedge funds and other institutional investors own 89.56% of the company's stock.

Lamb Weston Price Performance

Shares of Lamb Weston stock opened at $45.04 on Wednesday. The stock has a market capitalization of $6.22 billion, a P/E ratio of 21.04, a PEG ratio of 6.05 and a beta of 0.47. The business has a 50 day simple moving average of $43.06 and a two-hundred day simple moving average of $45.49. Lamb Weston has a 12 month low of $37.62 and a 12 month high of $67.07. The company has a debt-to-equity ratio of 1.99, a current ratio of 1.46 and a quick ratio of 0.69.

Lamb Weston (NYSE:LW - Get Free Report) last issued its quarterly earnings results on Wednesday, April 1st. The specialty retailer reported $0.72 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.61 by $0.11. Lamb Weston had a return on equity of 23.77% and a net margin of 4.61%.The firm had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.49 billion. During the same period in the previous year, the company posted $1.10 earnings per share. The business's revenue was up 2.9% on a year-over-year basis. As a group, analysts predict that Lamb Weston will post 2.85 EPS for the current fiscal year.

Lamb Weston Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 8th were issued a dividend of $0.38 per share. The ex-dividend date of this dividend was Friday, May 8th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 3.4%. Lamb Weston's dividend payout ratio is presently 71.03%.

Analysts Set New Price Targets

Several research firms have commented on LW. Barclays lowered their price objective on Lamb Weston from $55.00 to $46.00 and set an "overweight" rating on the stock in a research report on Thursday, April 2nd. Deutsche Bank Aktiengesellschaft lowered their target price on shares of Lamb Weston from $46.00 to $40.00 and set a "hold" rating on the stock in a research note on Monday, March 30th. Wells Fargo & Company dropped their target price on Lamb Weston from $54.00 to $46.00 and set an "overweight" rating on the stock in a research report on Thursday, April 2nd. Stephens assumed coverage on Lamb Weston in a research note on Wednesday, May 27th. They issued an "equal weight" rating and a $46.00 price target for the company. Finally, Bank of America decreased their price objective on shares of Lamb Weston from $49.00 to $47.00 and set a "neutral" rating on the stock in a report on Thursday, April 2nd. Three equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Lamb Weston has an average rating of "Hold" and an average price target of $47.82.

Insider Transactions at Lamb Weston

In other Lamb Weston news, Director Jana Partners Management, Lp acquired 50,000 shares of the company's stock in a transaction that occurred on Wednesday, April 15th. The stock was bought at an average price of $43.19 per share, with a total value of $2,159,500.00. Following the purchase, the director owned 5,398,980 shares in the company, valued at approximately $233,181,946.20. The trade was a 0.93% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Peter J. Bensen acquired 5,000 shares of the business's stock in a transaction on Monday, April 6th. The stock was acquired at an average price of $39.45 per share, with a total value of $197,250.00. Following the acquisition, the director owned 17,204 shares in the company, valued at $678,697.80. The trade was a 40.97% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought 391,000 shares of company stock valued at $16,270,790 over the last quarter. Company insiders own 0.29% of the company's stock.

About Lamb Weston

Lamb Weston, traded on the NYSE under the symbol LW, is a leading global processor and supplier of frozen potato products. The company's portfolio includes a variety of potato-based items such as French fries, potato wedges, hash browns and specialty cuts tailored to the foodservice and retail grocery channels. Lamb Weston serves quick-service restaurants, full-service operators, grocery chains and food distributors, offering customized product formats, packaging solutions and seasoning options to meet evolving customer demands.

Founded in 1950 and headquartered in Eagle, Idaho, Lamb Weston has grown from a regional processor into one of the world's largest producers of frozen potato products.

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