Easterly Investment Partners LLC Makes New Investment in Lamb Weston $LW

Key Points

• Easterly Investment Partners opened a new position in Lamb Weston, buying 73,316 shares valued at about $3.07 million in the fourth quarter.
• Lamb Weston reported better-than-expected fiscal results, with quarterly EPS of $0.72 versus $0.61 expected and revenue of $1.56 billion versus $1.49 billion estimated.
• The company announced a quarterly dividend of $0.38 per share, equal to a 3.5% annualized yield, while analysts currently rate the stock a consensus “Hold” with a $47.82 price target.

Easterly Investment Partners LLC bought a new position in shares of Lamb Weston (NYSE:LW - Free Report) in the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 73,316 shares of the specialty retailer's stock, valued at approximately $3,071,000. Easterly Investment Partners LLC owned 0.05% of Lamb Weston as of its most recent SEC filing.

Other large investors have also recently added to or reduced their stakes in the company. Arnhold LLC boosted its position in Lamb Weston by 710.2% during the fourth quarter. Arnhold LLC now owns 38,217 shares of the specialty retailer's stock worth $1,601,000 after purchasing an additional 33,500 shares during the period. Capital Research Global Investors boosted its position in Lamb Weston by 46.3% during the third quarter. Capital Research Global Investors now owns 2,150,000 shares of the specialty retailer's stock worth $124,872,000 after purchasing an additional 680,000 shares during the period. Dana Investment Advisors Inc. boosted its position in Lamb Weston by 44.8% during the fourth quarter. Dana Investment Advisors Inc. now owns 89,991 shares of the specialty retailer's stock worth $3,770,000 after purchasing an additional 27,835 shares during the period. Natixis Advisors LLC boosted its position in Lamb Weston by 8.7% during the third quarter. Natixis Advisors LLC now owns 535,602 shares of the specialty retailer's stock worth $31,108,000 after purchasing an additional 42,709 shares during the period. Finally, SG Americas Securities LLC boosted its position in Lamb Weston by 2,682.3% during the fourth quarter. SG Americas Securities LLC now owns 801,708 shares of the specialty retailer's stock worth $33,584,000 after purchasing an additional 772,893 shares during the period. Institutional investors own 89.56% of the company's stock.

Lamb Weston Stock Up 0.1%

LW opened at $43.21 on Monday. 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 stock has a market capitalization of $5.97 billion, a price-to-earnings ratio of 20.19, a P/E/G ratio of 6.24 and a beta of 0.47. The business has a 50 day moving average of $42.37 and a 200-day moving average of $46.68.

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

Lamb Weston Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 8th will be paid a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date is Friday, May 8th. Lamb Weston's dividend payout ratio is presently 71.03%.

Analyst Ratings Changes

LW has been the subject of several research reports. Wells Fargo & Company reduced their price objective on Lamb Weston from $54.00 to $46.00 and set an "overweight" rating for the company in a research report on Thursday, April 2nd. Weiss Ratings cut Lamb Weston from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, April 10th. BNP Paribas Exane reduced their price objective on Lamb Weston from $48.00 to $41.00 and set a "neutral" rating for the company in a research report on Thursday, April 2nd. Barclays reduced their price objective on Lamb Weston from $55.00 to $46.00 and set an "overweight" rating for the company in a research report on Thursday, April 2nd. Finally, Stephens initiated coverage on Lamb Weston in a research report on Wednesday, May 27th. They issued an "equal weight" rating and a $46.00 price objective for the company. Three investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $47.82.

Insiders Place Their Bets

In other news, Director Jana Partners Management, Lp bought 136,000 shares of the business's stock in a transaction that occurred on Tuesday, April 7th. The stock was acquired at an average cost of $40.89 per share, for a total transaction of $5,561,040.00. Following the completion of the purchase, the director owned 5,148,980 shares of the company's stock, valued at $210,541,792.20. This trade represents a 2.71% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Peter J. Bensen bought 5,000 shares of the business's stock in a transaction that occurred on Monday, April 6th. The stock was purchased at an average price of $39.45 per share, with a total value of $197,250.00. Following the completion of the purchase, the director directly owned 17,204 shares of the company's stock, valued at $678,697.80. This represents a 40.97% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders purchased 391,000 shares of company stock valued at $16,270,790 over the last 90 days. 0.29% of the stock is currently owned by corporate insiders.

Lamb Weston Company Profile

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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