Gates Capital Management Inc. Has $107.46 Million 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. raised its stake in Lamb Weston (NYSE:LW - Free Report) by 49.8% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 2,016,142 shares of the specialty retailer's stock after buying an additional 670,611 shares during the quarter. Lamb Weston makes up approximately 2.1% of Gates Capital Management Inc.'s investment portfolio, making the stock its 15th largest position. Gates Capital Management Inc. owned about 1.43% of Lamb Weston worth $107,460,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors also recently added to or reduced their stakes in LW. Kovitz Investment Group Partners LLC acquired a new position in shares of Lamb Weston in the 4th quarter valued at $213,000. Northern Trust Corp lifted its stake in Lamb Weston by 9.2% during the 4th quarter. Northern Trust Corp now owns 1,425,510 shares of the specialty retailer's stock worth $95,267,000 after acquiring an additional 120,279 shares in the last quarter. Aristeia Capital L.L.C. acquired a new position in Lamb Weston during the 4th quarter worth about $312,000. Aptus Capital Advisors LLC acquired a new position in Lamb Weston during the 4th quarter worth about $223,000. Finally, Alyeska Investment Group L.P. purchased a new stake in Lamb Weston during the 4th quarter worth about $18,474,000. 89.56% of the stock is currently owned by hedge funds and other institutional investors.

Lamb Weston Stock Up 2.8%

Shares of NYSE:LW traded up $1.56 during trading on Friday, hitting $57.33. The company's stock had a trading volume of 552,004 shares, compared to its average volume of 2,276,206. The stock's 50-day moving average price is $54.10 and its two-hundred day moving average price is $53.58. Lamb Weston has a fifty-two week low of $47.87 and a fifty-two week high of $83.98. The company has a market capitalization of $7.99 billion, a PE ratio of 22.83, a PEG ratio of 2.33 and a beta of 0.49. The company has a debt-to-equity ratio of 2.12, a quick ratio of 0.68 and a current ratio of 1.38.

Lamb Weston (NYSE:LW - Get Free Report) last posted its earnings results on Wednesday, July 23rd. The specialty retailer reported $0.87 EPS for the quarter, beating the consensus estimate of $0.64 by $0.23. The company had revenue of $1.68 billion during the quarter, compared to analyst estimates of $1.59 billion. Lamb Weston had a return on equity of 27.99% and a net margin of 5.54%.The business's revenue was up 4.0% compared to the same quarter last year. During the same period in the prior year, the company earned $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 EPS for the current year.

Lamb Weston Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Friday, August 1st were paid a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend was Friday, August 1st. Lamb Weston's payout ratio is 58.96%.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. Wall Street Zen upgraded Lamb Weston from a "sell" rating to a "hold" rating in a report on Thursday, May 8th. Wells Fargo & Company increased their price objective on Lamb Weston from $65.00 to $66.00 and gave the stock an "overweight" rating in a research report on Thursday, July 24th. Barclays raised their price target on Lamb Weston from $61.00 to $68.00 and gave the company an "overweight" rating in a report on Friday, July 25th. Bank of America reduced their price objective on Lamb Weston from $60.00 to $56.00 and set a "neutral" rating for the company in a report on Wednesday, June 18th. Finally, JPMorgan Chase & Co. assumed coverage on Lamb Weston in a report on Wednesday, August 20th. They issued a "neutral" rating and a $57.00 target price on the stock. Three investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $65.30.

Lamb Weston Company Profile

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.