Lamb Weston $LW Shares Purchased by Southpoint Capital Advisors LP

Key Points

• Southpoint Capital Advisors LP increased its stake in Lamb Weston by 5.1%, acquiring an additional 97,757 shares to own a total of 2,000,000 shares, representing 2.5% of its portfolio.
• Analysts have upwardly revised their target prices for Lamb Weston, with Barclays setting a new target at $68.00 and Wells Fargo at $66.00, reflecting a positive outlook for the company.
• Lamb Weston reported an earnings per share (EPS) of $0.87 for the last quarter, exceeding estimates, and announced a quarterly dividend of $0.37, signaling a solid financial position.

Southpoint Capital Advisors LP boosted its position in Lamb Weston (NYSE:LW - Free Report) by 5.1% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 2,000,000 shares of the specialty retailer's stock after buying an additional 97,757 shares during the quarter. Lamb Weston makes up about 2.5% of Southpoint Capital Advisors LP's holdings, making the stock its 20th largest position. Southpoint Capital Advisors LP owned about 1.42% of Lamb Weston worth $106,600,000 at the end of the most recent reporting period.

A number of other large investors have also bought and sold shares of LW. Price T Rowe Associates Inc. MD boosted its holdings in shares of Lamb Weston by 49.2% in the first quarter. Price T Rowe Associates Inc. MD now owns 4,500,503 shares of the specialty retailer's stock worth $239,877,000 after acquiring an additional 1,483,559 shares during the period. Citigroup Inc. lifted its stake in Lamb Weston by 324.4% during the first quarter. Citigroup Inc. now owns 1,126,982 shares of the specialty retailer's stock worth $60,068,000 after purchasing an additional 861,417 shares during the last quarter. Invesco Ltd. lifted its stake in shares of Lamb Weston by 25.7% in the 1st quarter. Invesco Ltd. now owns 4,055,902 shares of the specialty retailer's stock valued at $216,180,000 after acquiring an additional 829,207 shares during the last quarter. Gates Capital Management Inc. increased its holdings in Lamb Weston by 49.8% during the 1st quarter. Gates Capital Management Inc. now owns 2,016,142 shares of the specialty retailer's stock valued at $107,460,000 after purchasing an additional 670,611 shares during the period. Finally, Clarkston Capital Partners LLC increased its holdings in Lamb Weston by 21.1% during the 1st quarter. Clarkston Capital Partners LLC now owns 3,721,559 shares of the specialty retailer's stock valued at $198,359,000 after purchasing an additional 648,855 shares during the period. 89.56% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on LW shares. Wells Fargo & Company upped their price target on Lamb Weston from $65.00 to $66.00 and gave the stock an "overweight" rating in a research note on Thursday, July 24th. Bank of America reduced their price target on Lamb Weston from $60.00 to $56.00 and set a "neutral" rating for the company in a research report on Wednesday, June 18th. JPMorgan Chase & Co. initiated coverage on Lamb Weston in a research note on Wednesday, August 20th. They set a "neutral" rating and a $57.00 price target for the company. Finally, Barclays raised their price objective on Lamb Weston from $61.00 to $68.00 and gave the company an "overweight" rating in a research note on Friday, July 25th. Three equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $65.30.

Lamb Weston Price Performance

Shares of LW stock traded up $2.25 during trading hours on Friday, reaching $58.02. The company had a trading volume of 1,658,930 shares, compared to its average volume of 1,220,842. The company has a market capitalization of $8.08 billion, a price-to-earnings ratio of 23.11, a PEG ratio of 2.39 and a beta of 0.49. Lamb Weston has a 12-month low of $47.87 and a 12-month high of $83.98. The company has a debt-to-equity ratio of 2.12, a quick ratio of 0.68 and a current ratio of 1.38. The stock has a fifty day moving average of $54.19 and a 200-day moving average of $53.53.

Lamb Weston (NYSE:LW - Get Free Report) last released 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. Lamb Weston had a return on equity of 27.99% and a net margin of 5.54%.The business had revenue of $1.68 billion during the quarter, compared to analyst estimates of $1.59 billion. During the same period last year, the business posted $0.78 earnings per share. The company's quarterly revenue was up 4.0% on a year-over-year basis. Lamb Weston has set its FY 2026 guidance at EPS. On average, equities analysts anticipate that Lamb Weston will post 3.1 earnings per share for the current year.

Lamb Weston Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Friday, August 1st were given a dividend of $0.37 per share. This represents a $1.48 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date was Friday, August 1st. Lamb Weston's dividend payout ratio (DPR) is presently 58.96%.

Lamb Weston 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.