Capital Research Global Investors Has $118.13 Million Holdings in Lamb Weston $LW

Key Points

• Capital Research Global Investors increased its Lamb Weston stake by 31.2% in the fourth quarter, ending with 2.82 million shares worth about $118.13 million, or roughly 2.03% of the company.
• Analysts remain cautious on Lamb Weston, with the stock carrying an overall “Hold” rating and an average price target of $47.82; several firms recently trimmed targets or reiterated neutral views.
• Lamb Weston reported better-than-expected quarterly results, with EPS of $0.72 and revenue of $1.56 billion, and it also paid a quarterly dividend of $0.38 per share, yielding about 3.6%.

Capital Research Global Investors lifted its stake in Lamb Weston (NYSE:LW - Free Report) by 31.2% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 2,820,000 shares of the specialty retailer's stock after acquiring an additional 670,000 shares during the period. Capital Research Global Investors owned approximately 2.03% of Lamb Weston worth $118,130,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also bought and sold shares of LW. Los Angeles Capital Management LLC grew its position in Lamb Weston by 187.8% in the 4th quarter. Los Angeles Capital Management LLC now owns 99,527 shares of the specialty retailer's stock worth $4,169,000 after purchasing an additional 64,950 shares during the last quarter. MCF Advisors LLC raised its position in shares of Lamb Weston by 44.2% during the fourth quarter. MCF Advisors LLC now owns 649 shares of the specialty retailer's stock valued at $27,000 after buying an additional 199 shares during the last quarter. WINTON GROUP Ltd bought a new stake in shares of Lamb Weston in the fourth quarter valued at about $776,000. J.W. Cole Advisors Inc. lifted its stake in shares of Lamb Weston by 4.0% in the fourth quarter. J.W. Cole Advisors Inc. now owns 19,961 shares of the specialty retailer's stock valued at $813,000 after buying an additional 764 shares during the period. Finally, Daiwa Securities Group Inc. grew its position in Lamb Weston by 6.2% during the fourth quarter. Daiwa Securities Group Inc. now owns 10,707 shares of the specialty retailer's stock worth $449,000 after buying an additional 622 shares in the last quarter. Institutional investors own 89.56% of the company's stock.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. Deutsche Bank Aktiengesellschaft lowered their price target on Lamb Weston from $46.00 to $40.00 and set a "hold" rating on the stock in a research note on Monday, March 30th. Stephens started coverage on Lamb Weston in a report on Wednesday, May 27th. They set an "equal weight" rating and a $46.00 price objective on the stock. Bank of America lowered their price objective on Lamb Weston from $49.00 to $47.00 and set a "neutral" rating on the stock in a research report on Thursday, April 2nd. Zacks Research upgraded Lamb Weston from a "strong sell" rating to a "hold" rating in a research note on Tuesday, March 3rd. Finally, Stifel Nicolaus reduced their target price on Lamb Weston from $50.00 to $45.00 and set a "hold" rating for the company in a research report on Thursday, April 2nd. Three analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Lamb Weston presently has an average rating of "Hold" and an average target price of $47.82.

Lamb Weston Trading Up 1.1%

LW stock opened at $42.56 on Tuesday. Lamb Weston has a 1-year low of $37.62 and a 1-year high of $67.07. The company has a current ratio of 1.46, a quick ratio of 0.69 and a debt-to-equity ratio of 1.99. The business's 50 day moving average is $42.52 and its 200-day moving average is $46.03. The firm has a market cap of $5.88 billion, a P/E ratio of 19.89, a P/E/G ratio of 5.61 and a beta of 0.47.

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

Lamb Weston Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 8th were paid a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 3.6%. The ex-dividend date was Friday, May 8th. Lamb Weston's payout ratio is currently 71.03%.

Insider Buying and Selling at Lamb Weston

In other news, Director Peter J. Bensen purchased 5,000 shares of the business's stock in a transaction that occurred on Monday, April 6th. The stock was purchased at an average cost of $39.45 per share, with a total value of $197,250.00. Following the acquisition, the director directly owned 17,204 shares of the company's stock, valued at approximately $678,697.80. This trade represents a 40.97% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Jana Partners Management, Lp purchased 50,000 shares of Lamb Weston stock in a transaction on Wednesday, April 15th. The stock was purchased at an average price of $43.19 per share, for a total transaction of $2,159,500.00. Following the completion of the transaction, the director owned 5,398,980 shares of the company's stock, valued at approximately $233,181,946.20. This represents a 0.93% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders bought a total of 391,000 shares of company stock worth $16,270,790 in the last 90 days. 0.29% of the stock is owned by corporate insiders.

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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