Wellington Management Group LLP Makes New Investment in Lifeway Foods, Inc. $LWAY

Key Points

• Wellington Management initiated a sizable Lifeway Foods position, buying 585,100 shares worth approximately $17.5 million and representing about 3.87% of the company. Institutional investors collectively own 36.39% of LWAY.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating and a $34 price target, although recent reports range from “Strong Buy” to “Sell.”
• Lifeway Foods reported quarterly revenue of $66.89 million, above estimates, but earnings of $0.01 per share missed the $0.26 consensus forecast. Major shareholders also sold a combined 211,548 shares in disclosed transactions.

Wellington Management Group LLP purchased a new stake in shares of Lifeway Foods, Inc. (NASDAQ:LWAY - Free Report) during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 585,100 shares of the company's stock, valued at approximately $17,459,000. Wellington Management Group LLP owned approximately 3.87% of Lifeway Foods at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Persistent Asset Partners Ltd purchased a new stake in shares of Lifeway Foods during the second quarter valued at $26,000. Larson Financial Group LLC acquired a new position in shares of Lifeway Foods in the 3rd quarter valued at $31,000. BNP Paribas Financial Markets raised its stake in Lifeway Foods by 577.3% in the 2nd quarter. BNP Paribas Financial Markets now owns 1,551 shares of the company's stock worth $38,000 after acquiring an additional 1,322 shares during the last quarter. Raymond James Financial Inc. purchased a new position in Lifeway Foods in the 2nd quarter worth $40,000. Finally, Strs Ohio acquired a new stake in Lifeway Foods during the 1st quarter worth about $90,000. Hedge funds and other institutional investors own 36.39% of the company's stock.

Wall Street Analyst Weigh In

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

Insider Activity at Lifeway Foods

In other Lifeway Foods news, major shareholder Ludmila Smolyansky sold 100,000 shares of the business's stock in a transaction that occurred on Wednesday, July 22nd. The stock was sold at an average price of $30.11, for a total value 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. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, major shareholder Edward Smolyansky sold 111,548 shares of the company's stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $29.26, for a total value of $3,263,894.48. Following the completion of the sale, the insider owned 902,642 shares in the company, valued at approximately $26,411,304.92. This represents a 11.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders purchased 248,568 shares of company stock worth $6,176,730 and sold 592,698 shares worth $17,070,367. 18.58% of the stock is owned by company insiders.

Lifeway Foods Price Performance

Shares of LWAY opened at $25.01 on Monday. The business's 50-day moving average is $28.93 and its two-hundred day moving average is $25.48. The company has a market capitalization of $377.90 million, a P/E ratio of 35.73 and a beta of 0.44. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.47 and a current ratio of 2.09. Lifeway Foods, Inc. has a fifty-two week low of $17.31 and a fifty-two week high of $34.20.

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

Lifeway Foods Company 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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