BlackRock Inc. Makes New $9.61 Million Investment in Lifeway Foods, Inc. $LWAY

Key Points

• BlackRock acquired 322,184 Lifeway Foods shares worth approximately $9.61 million, giving it a 2.11% stake. Institutional investors and hedge funds collectively own 36.39% of the company.
• Lifeway reported quarterly revenue of $66.89 million, beating expectations, but its $0.01 EPS fell well short of the $0.26 consensus estimate.
• Analyst sentiment remains generally positive, with an average “Buy” rating and a $34 consensus price target, although some firms downgraded the stock. Shares opened at $25.01, below their 50-day moving average of $28.93.

BlackRock Inc. bought a new position in shares of Lifeway Foods, Inc. (NASDAQ:LWAY - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 322,184 shares of the company's stock, valued at approximately $9,614,000. BlackRock Inc. owned 2.11% of Lifeway Foods at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently bought and sold shares of LWAY. Strs Ohio acquired a new position in shares of Lifeway Foods in the first quarter worth approximately $90,000. Rhumbline Advisers grew its holdings in Lifeway Foods by 8.2% in the first quarter. Rhumbline Advisers now owns 6,068 shares of the company's stock worth $148,000 after purchasing an additional 462 shares during the period. Geode Capital Management LLC increased its position in Lifeway Foods by 6.6% in the 2nd quarter. Geode Capital Management LLC now owns 124,726 shares of the company's stock valued at $3,075,000 after buying an additional 7,718 shares in the last quarter. JPMorgan Chase & Co. increased its holdings in shares of Lifeway Foods by 293.6% during the second quarter. JPMorgan Chase & Co. now owns 13,472 shares of the company's stock valued at $332,000 after acquiring an additional 10,049 shares in the last quarter. Finally, First Trust Advisors LP increased its stake in Lifeway Foods by 6.8% during the 2nd quarter. First Trust Advisors LP now owns 17,178 shares of the company's stock valued at $423,000 after purchasing an additional 1,091 shares in the last quarter. 36.39% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Lifeway Foods

In other Lifeway Foods news, major shareholder Divisadero Street Capital Mana purchased 195,616 shares of the stock in a transaction dated Thursday, August 13th. The shares were purchased at an average cost of $24.87 per share, with a total value of $4,864,969.92. Following the completion of the acquisition, the insider directly owned 2,297,156 shares in the company, valued at $57,130,269.72. This trade represents a 9.31% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, major shareholder Ludmila Smolyansky sold 100,000 shares of the company's stock in a transaction dated Wednesday, July 22nd. The shares were sold at an average price of $30.11, for a total transaction of $3,011,000.00. Following the transaction, the insider owned 507,207 shares in the company, valued at $15,272,002.77. This represents a 16.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders acquired 248,568 shares of company stock worth $6,176,730 and sold 592,698 shares worth $17,070,367. Company insiders own 18.58% of the company's stock.

Lifeway Foods Stock Performance

Lifeway Foods stock opened at $25.01 on Friday. Lifeway Foods, Inc. has a twelve month low of $17.31 and a twelve month high of $34.20. The company has a quick ratio of 1.47, a current ratio of 2.09 and a debt-to-equity ratio of 0.26. The stock's 50 day moving average is $28.93 and its 200 day moving average is $25.45. The company has a market capitalization of $377.90 million, a P/E ratio of 35.73 and a beta of 0.44.

Lifeway Foods (NASDAQ:LWAY - Get Free Report) last posted its quarterly earnings results on Thursday, August 13th. The company reported $0.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.26 by ($0.25). The company had revenue of $66.89 million during the quarter, compared to analysts' expectations of $61.40 million. Lifeway Foods had a return on equity of 12.66% and a net margin of 4.48%.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on LWAY. Weiss Ratings downgraded Lifeway Foods from a "buy (b-)" rating to a "hold (c)" rating in a research note on Thursday, August 13th. Benchmark reissued a "buy" rating on shares of Lifeway Foods in a research report on Monday, June 15th. Freedom Capital raised Lifeway Foods from a "hold" rating to a "strong-buy" rating in a report on Friday, August 14th. BTIG Research assumed coverage on shares of Lifeway Foods in a report on Thursday, August 20th. They set a "buy" rating and a $32.00 target price on the stock. Finally, Wall Street Zen downgraded shares of Lifeway Foods from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Buy" and a consensus price target of $34.00.

Lifeway Foods Company Profile

Lifeway Foods, Inc NASDAQ: LWAY is a Chicago-based food company specializing in probiotic-rich cultured dairy products. Established in 1986 by Michael Smolyansky, the company pioneered the introduction of kefir to the U.S. market. Under the leadership of CEO Julie Smolyansky, who succeeded her father in 2002, Lifeway has grown from a single product operation into a diversified portfolio of fermented foods and beverages aimed at promoting digestive health and wellness.

The company's flagship product is kefir, a cultured milk beverage naturally rich in probiotics, vitamins and minerals.

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