Squarepoint Ops LLC Purchases 77,774 Shares of Lifeway Foods, Inc. $LWAY

Key Points

• Squarepoint Ops increased its Lifeway Foods stake by 167.2%, buying 77,774 shares to hold 124,294 shares worth approximately $3.7 million. Several other major institutions also initiated positions, bringing institutional ownership to 36.39%.
• Lifeway reported mixed quarterly results: revenue of $66.89 million exceeded estimates, but earnings per share of $0.01 fell well short of the $0.26 consensus forecast.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating and a $34 price target, although some firms downgraded the stock. Insider activity was mixed, as CEO Julie Smolyansky bought shares while major shareholder Ludmila Smolyansky sold 100,000 shares.

Squarepoint Ops LLC raised its holdings in shares of Lifeway Foods, Inc. (NASDAQ:LWAY - Free Report) by 167.2% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 124,294 shares of the company's stock after purchasing an additional 77,774 shares during the period. Squarepoint Ops LLC owned 0.82% of Lifeway Foods worth $3,709,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds also recently modified their holdings of LWAY. Wellington Management Group LLP bought a new stake in shares of Lifeway Foods during the second quarter worth approximately $17,459,000. BlackRock Inc. acquired a new stake in Lifeway Foods during the 2nd quarter worth $9,614,000. Pillsbury Lake Capital LLC acquired a new stake in Lifeway Foods during the 2nd quarter worth $8,704,597. AWM Investment Company Inc. bought a new stake in shares of Lifeway Foods during the 2nd quarter valued at $6,654,000. Finally, Marshall Wace LLP bought a new stake in shares of Lifeway Foods during the 4th quarter valued at $2,984,000. Institutional investors own 36.39% of the company's stock.

Lifeway Foods Price Performance

Shares of LWAY opened at $24.61 on Friday. The stock has a 50 day simple moving average of $28.39 and a 200 day simple moving average of $25.56. Lifeway Foods, Inc. has a 52-week low of $17.31 and a 52-week high of $34.20. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.47 and a current ratio of 2.09. The firm has a market capitalization of $371.86 million, a PE ratio of 35.16 and a beta of 0.44.

Lifeway Foods (NASDAQ:LWAY - Get Free Report) last announced its earnings results on Thursday, August 13th. The company reported $0.01 EPS for the quarter, missing the consensus estimate of $0.26 by ($0.25). Lifeway Foods had a return on equity of 12.66% and a net margin of 4.48%.The company had revenue of $66.89 million for the quarter, compared to analyst estimates of $61.40 million.

Analyst Upgrades and Downgrades

LWAY has been the topic of a number of analyst reports. Benchmark restated a "buy" rating on shares of Lifeway Foods in a research report on Monday, June 15th. BTIG Research began coverage on Lifeway Foods in a report on Thursday, August 20th. They issued a "buy" rating and a $32.00 price objective for the company. Freedom Capital upgraded Lifeway Foods from a "hold" rating to a "strong-buy" rating in a report on Friday, August 14th. Wall Street Zen lowered Lifeway Foods from a "hold" rating to a "sell" rating in a research note on Saturday, August 15th. Finally, Weiss Ratings cut Lifeway Foods from a "buy (b-)" rating to a "hold (c)" rating in a report on Thursday, August 13th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus price target of $34.00.

Insider Activity at Lifeway Foods

In related news, CEO Julie Smolyansky acquired 2,000 shares of the business's stock in a transaction that occurred on Wednesday, August 19th. The shares were acquired at an average cost of $25.26 per share, with a total value of $50,520.00. Following the transaction, the chief executive officer owned 2,214,095 shares of the company's stock, valued at $55,928,039.70. The trade was a 0.09% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, major shareholder Ludmila Smolyansky sold 100,000 shares of the company's stock in a transaction on Wednesday, July 22nd. The stock was sold at an average price of $30.11, for a total transaction of $3,011,000.00. Following the completion of the transaction, the insider directly owned 507,207 shares of the company's stock, valued at approximately $15,272,002.77. The trade was a 16.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders acquired 248,568 shares of company stock valued at $6,176,730 and sold 592,698 shares valued at $17,070,367. 18.58% of the stock is owned by corporate insiders.

Lifeway Foods Profile

Lifeway Foods, Inc NASDAQ: LWAY is a Chicago-based food company specializing in probiotic-rich cultured dairy products. Established in 1986 by Michael Smolyansky, the company pioneered the introduction of kefir to the U.S. market. Under the leadership of CEO Julie Smolyansky, who succeeded her father in 2002, Lifeway has grown from a single product operation into a diversified portfolio of fermented foods and beverages aimed at promoting digestive health and wellness.

The company's flagship product is kefir, a cultured milk beverage naturally rich in probiotics, vitamins and minerals.

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