Gates Capital Management Inc. Has $107.46 Million Stock Position in Lamb Weston $LW

Key Points

• Gates Capital Management Inc. increased its stake in Lamb Weston by 49.8% during the first quarter, owning approximately 2.1% of the company, valued at $107.46 million.
• Multiple hedge funds have recently acquired positions in Lamb Weston, indicating strong institutional interest, with 89.56% of stock ownership held by institutional investors.
• Lamb Weston reported $0.87 earnings per share for the last quarter, surpassing analyst expectations, with revenues also exceeding estimates at $1.68 billion.

Gates Capital Management Inc. grew its position in Lamb Weston (NYSE:LW - Free Report) by 49.8% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 2,016,142 shares of the specialty retailer's stock after acquiring an additional 670,611 shares during the quarter. Lamb Weston makes up approximately 2.1% of Gates Capital Management Inc.'s holdings, making the stock its 15th largest position. Gates Capital Management Inc. owned 1.43% of Lamb Weston worth $107,460,000 at the end of the most recent quarter.

A number of other hedge funds have also recently added to or reduced their stakes in the business. Romano Brothers AND Company lifted its position in shares of Lamb Weston by 1.4% in the 1st quarter. Romano Brothers AND Company now owns 15,260 shares of the specialty retailer's stock worth $813,000 after buying an additional 218 shares during the last quarter. Teachers Retirement System of The State of Kentucky lifted its holdings in Lamb Weston by 2.0% in the first quarter. Teachers Retirement System of The State of Kentucky now owns 10,971 shares of the specialty retailer's stock worth $585,000 after acquiring an additional 219 shares during the last quarter. Concurrent Investment Advisors LLC lifted its holdings in Lamb Weston by 4.0% in the first quarter. Concurrent Investment Advisors LLC now owns 5,984 shares of the specialty retailer's stock worth $319,000 after acquiring an additional 230 shares during the last quarter. Snowden Capital Advisors LLC grew its holdings in shares of Lamb Weston by 8.2% during the fourth quarter. Snowden Capital Advisors LLC now owns 3,393 shares of the specialty retailer's stock valued at $227,000 after purchasing an additional 256 shares during the last quarter. Finally, Smith Thornton Advisors LLC raised its position in shares of Lamb Weston by 6.8% during the 1st quarter. Smith Thornton Advisors LLC now owns 4,300 shares of the specialty retailer's stock worth $229,000 after purchasing an additional 275 shares during the period. Institutional investors and hedge funds own 89.56% of the company's stock.

Lamb Weston Stock Down 1.4%

Shares of Lamb Weston stock traded down $0.79 during midday trading on Thursday, hitting $55.76. The company's stock had a trading volume of 1,057,072 shares, compared to its average volume of 2,283,226. The firm has a market capitalization of $7.77 billion, a P/E ratio of 22.22, a PEG ratio of 2.37 and a beta of 0.49. Lamb Weston has a 1-year low of $47.87 and a 1-year high of $83.98. The company has a quick ratio of 0.68, a current ratio of 1.38 and a debt-to-equity ratio of 2.12. The stock has a 50-day simple moving average of $54.04 and a 200-day simple moving average of $53.60.

Lamb Weston (NYSE:LW - Get Free Report) last posted its quarterly earnings results on Wednesday, July 23rd. The specialty retailer reported $0.87 EPS for the quarter, topping the consensus estimate of $0.64 by $0.23. The business had revenue of $1.68 billion during the quarter, compared to analysts' expectations of $1.59 billion. Lamb Weston had a net margin of 5.54% and a return on equity of 27.99%. The firm's quarterly revenue was up 4.0% compared to the same quarter last year. During the same period last year, the company posted $0.78 earnings per share. Lamb Weston has set its FY 2026 guidance at EPS. As a group, sell-side analysts expect that Lamb Weston will post 3.1 earnings per share for the current year.

Lamb Weston Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Friday, August 1st were given a $0.37 dividend. This represents a $1.48 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend was Friday, August 1st. Lamb Weston's dividend payout ratio is currently 58.96%.

Analysts Set New Price Targets

LW has been the subject of a number of recent research reports. Barclays upped their price objective on Lamb Weston from $61.00 to $68.00 and gave the stock an "overweight" rating in a research note on Friday, July 25th. Bank of America lowered their target price on Lamb Weston from $60.00 to $56.00 and set a "neutral" rating on the stock in a research report on Wednesday, June 18th. Wall Street Zen upgraded Lamb Weston from a "sell" rating to a "hold" rating in a research report on Thursday, May 8th. JPMorgan Chase & Co. initiated coverage on Lamb Weston in a report on Wednesday, August 20th. They set a "neutral" rating and a $57.00 price target on the stock. Finally, Wells Fargo & Company lifted their price objective on shares of Lamb Weston from $65.00 to $66.00 and gave the company an "overweight" rating in a research note on Thursday, July 24th. Three investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $65.30.

About Lamb Weston

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.