Lamb Weston $LW Shares Acquired by Weiss Asset Management LP

Key Points

• Weiss Asset Management LP sharply increased its stake in Lamb Weston during the first quarter, boosting holdings by 197.3% to 162,286 shares worth about $6.86 million.
• Lamb Weston reported better-than-expected fiscal Q4 results, with EPS of $0.87 and revenue of $1.77 billion, helped by stronger North American volume and 5.6% year-over-year sales growth.
• The company issued FY 2027 guidance calling for EPS of 2.95-3.25 and revenue above consensus, while also declaring a quarterly dividend of $0.38 per share for a 3.1% yield.

Weiss Asset Management LP boosted its holdings in Lamb Weston (NYSE:LW - Free Report) by 197.3% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 162,286 shares of the specialty retailer's stock after acquiring an additional 107,707 shares during the quarter. Weiss Asset Management LP owned 0.12% of Lamb Weston worth $6,858,000 at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. MCF Advisors LLC grew its stake in shares of Lamb Weston by 44.2% in the fourth quarter. MCF Advisors LLC now owns 649 shares of the specialty retailer's stock worth $27,000 after purchasing an additional 199 shares in the last quarter. Hantz Financial Services Inc. lifted its holdings in Lamb Weston by 380.7% in the fourth quarter. Hantz Financial Services Inc. now owns 721 shares of the specialty retailer's stock worth $30,000 after purchasing an additional 571 shares during the period. Transamerica Financial Advisors LLC lifted its holdings in Lamb Weston by 121.1% in the fourth quarter. Transamerica Financial Advisors LLC now owns 1,130 shares of the specialty retailer's stock worth $47,000 after purchasing an additional 619 shares during the period. Eagle Bay Advisors LLC bought a new position in Lamb Weston in the 4th quarter valued at about $48,000. Finally, SJS Investment Consulting Inc. grew its position in Lamb Weston by 4,512.0% in the 1st quarter. SJS Investment Consulting Inc. now owns 1,153 shares of the specialty retailer's stock valued at $49,000 after buying an additional 1,128 shares in the last quarter. Institutional investors own 89.56% of the company's stock.

Key Stories Impacting Lamb Weston

Here are the key news stories impacting Lamb Weston this week:

• Positive Sentiment: Lamb Weston beat fiscal Q4 earnings and revenue estimates, with stronger North American volume driving the top line. Lamb Weston (LW) Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company issued FY 2027 guidance that implies modest growth and revenue above consensus, suggesting management confidence in the turnaround. Lamb Weston earnings report
• Neutral Sentiment: Management said higher production and cost savings are helping offset inflation and geopolitical disruptions, but those headwinds are still affecting international sales. Seeking Alpha news
• Neutral Sentiment: Analysts remain cautious despite the beat, with at least one downgrade saying the stock may be past the worst but still faces meaningful challenges. Lamb Weston: Passing The Bottom, But Challenges Remain (Downgrade)
• Negative Sentiment: International weakness, inflation, and geopolitical volatility continue to pressure margins and could limit how quickly earnings improve. Lamb Weston Posts Higher Sales on North America Growth

Analyst Ratings Changes

Several equities analysts have commented on LW shares. Deutsche Bank Aktiengesellschaft lowered their target price on shares of 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 initiated coverage on shares of Lamb Weston in a report on Wednesday, May 27th. They issued an "equal weight" rating and a $46.00 price objective for the company. Stifel Nicolaus lowered their price objective on shares of Lamb Weston from $50.00 to $45.00 and set a "hold" rating on the stock in a research note on Thursday, April 2nd. BNP Paribas Exane dropped their target price on Lamb Weston from $48.00 to $41.00 and set a "neutral" rating on the stock in a report on Thursday, April 2nd. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of Lamb Weston in a research report on Wednesday, July 8th. Three equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $49.27.

Lamb Weston Stock Performance

NYSE:LW opened at $49.57 on Friday. Lamb Weston has a twelve month low of $37.62 and a twelve month 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 company has a 50-day moving average of $44.73 and a 200-day moving average of $44.25. The firm has a market cap of $6.84 billion, a price-to-earnings ratio of 23.83, a price-to-earnings-growth ratio of 6.58 and a beta of 0.47.

Lamb Weston (NYSE:LW - Get Free Report) last released its earnings results on Friday, July 24th. The specialty retailer reported $0.87 EPS for the quarter, topping analysts' consensus estimates of $0.63 by $0.24. Lamb Weston had a net margin of 4.61% and a return on equity of 23.77%. The business had revenue of $1.77 billion for the quarter, compared to the consensus estimate of $1.70 billion. During the same period in the previous year, the firm earned $0.87 EPS. The business's revenue for the quarter was up 5.6% on a year-over-year basis. Lamb Weston has set its FY 2027 guidance at 2.950-3.250 EPS. Analysts forecast that Lamb Weston will post 3.08 earnings per share for the current fiscal year.

Lamb Weston Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 7th will be given a $0.38 dividend. The ex-dividend date is Friday, August 7th. This represents a $1.52 annualized dividend and a yield of 3.1%. Lamb Weston's payout ratio is 71.03%.

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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