Insider Selling: Lifeway Foods (NASDAQ:LWAY) Major Shareholder Sells 20,000 Shares of Stock

Key Points

• Lifeway Foods major shareholder Ludmila Smolyansky sold 20,000 shares on May 15 at an average price of $24.64, worth about $492,800. After the sale, she still owned 712,823 shares, and the transaction reduced her stake by 2.73%.
• The insider has also sold shares multiple times recently, including 15,000 shares on April 20 and 10,000 shares on March 18, adding to the recent selling trend.
• Despite the insider selling, LWAY rose 6.2% to $25.29, and the company’s latest earnings report showed EPS of $0.30 in line with estimates and revenue of $63.01 million, above expectations.

Lifeway Foods, Inc. (NASDAQ:LWAY - Get Free Report) major shareholder Ludmila Smolyansky sold 20,000 shares of Lifeway Foods stock in a transaction on Friday, May 15th. The shares were sold at an average price of $24.64, for a total value of $492,800.00. Following the completion of the transaction, the insider owned 712,823 shares in the company, valued at $17,563,958.72. The trade was a 2.73% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Large shareholders that own at least 10% of a company's stock are required to disclose their sales and purchases with the SEC.

Ludmila Smolyansky also recently made the following trade(s):

• On Monday, April 20th, Ludmila Smolyansky sold 15,000 shares of Lifeway Foods stock. The stock was sold at an average price of $26.50, for a total value of $397,500.00.
• On Wednesday, March 18th, Ludmila Smolyansky sold 10,000 shares of Lifeway Foods stock. The stock was sold at an average price of $18.74, for a total value of $187,400.00.

Lifeway Foods Stock Up 6.2%

Shares of LWAY traded up $1.49 during midday trading on Tuesday, reaching $25.29. 61,859 shares of the company were exchanged, compared to its average volume of 75,079. The stock has a 50-day moving average price of $23.14 and a 200-day moving average price of $22.95. The company has a market cap of $386.41 million, a price-to-earnings ratio of 26.11 and a beta of 0.53. Lifeway Foods, Inc. has a 1-year low of $17.31 and a 1-year high of $34.20. The company has a current ratio of 2.14, a quick ratio of 1.56 and a debt-to-equity ratio of 0.08.

Lifeway Foods (NASDAQ:LWAY - Get Free Report) last issued its quarterly earnings data on Thursday, May 14th. The company reported $0.30 EPS for the quarter, hitting analysts' consensus estimates of $0.30. Lifeway Foods had a return on equity of 17.76% and a net margin of 6.54%.The company had revenue of $63.01 million for the quarter, compared to analysts' expectations of $60.80 million.

Institutional Trading of Lifeway Foods

Several institutional investors and hedge funds have recently bought and sold shares of the company. Larson Financial Group LLC bought a new position in shares of Lifeway Foods during the third quarter valued at approximately $31,000. BNP Paribas Financial Markets grew its holdings 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 buying an additional 1,322 shares in the last quarter. New York State Common Retirement Fund grew its holdings in Lifeway Foods by 433.3% in the 3rd quarter. New York State Common Retirement Fund now owns 1,600 shares of the company's stock worth $44,000 after buying an additional 1,300 shares in the last quarter. Raymond James Financial Inc. bought a new position in Lifeway Foods in the 2nd quarter worth approximately $40,000. Finally, State of Alaska Department of Revenue grew its holdings in Lifeway Foods by 302.0% in the 4th quarter. State of Alaska Department of Revenue now owns 2,967 shares of the company's stock worth $71,000 after buying an additional 2,229 shares in the last quarter. Institutional investors and hedge funds own 36.39% of the company's stock.

Analyst Upgrades and Downgrades

LWAY has been the topic of several research reports. Wall Street Zen cut Lifeway Foods from a "buy" rating to a "hold" rating in a research note on Saturday, March 21st. Weiss Ratings upgraded Lifeway Foods from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $34.33.

Trending Headlines about Lifeway Foods

Here are the key news stories impacting Lifeway Foods this week:

• Positive Sentiment: Major shareholder Divisadero Street Capital increased its stake by buying 33,174 shares at $25.27 per share, following an even larger purchase of 131,871 shares the prior day. Large insider buying can be viewed as a sign of confidence in the company’s outlook. Lifeway Foods NASDAQ: LWAY Major Shareholder Divisadero Street Capital Mana Purchases 33,174 Shares
• Neutral Sentiment: Lifeway Foods recently reported quarterly EPS of $0.30, matching estimates, while revenue came in above expectations at $63.01 million. That backdrop is supportive, but it is not the main new catalyst behind today’s move. Lifeway Foods stock and earnings information
• Negative Sentiment: Major shareholder Edward Smolyansky sold 24,000 shares at $24.87, and separately sold 25,000 shares at $25.34. Repeated insider selling can pressure sentiment because investors may view it as reduced confidence or profit-taking. Lifeway Foods NASDAQ: LWAY Major Shareholder Sells $596,880.00 in Stock
• Negative Sentiment: Freedom Broker downgraded Lifeway Foods, adding another headwind for the shares and reinforcing caution around the stock’s near-term valuation. Freedom Broker downgrades Lifeway Foods (LWAY)

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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