Lamb Weston (NYSE:LW) Coverage Initiated by Analysts at Stephens

Key Points

• Stephens initiated coverage on Lamb Weston with an “equal weight” rating and a $46 price target, implying modest upside from the current share price.
• Other analysts have also been adjusting their views, with several cutting price targets; the consensus rating remains “Hold” and the average price target is $47.82.
• Lamb Weston recently beat quarterly earnings and revenue estimates, while insider buying has been notable, including purchases by directors Jana Partners Management and Peter J. Bensen.

Equities researchers at Stephens initiated coverage on shares of Lamb Weston (NYSE:LW - Get Free Report) in a research note issued on Wednesday, Marketbeat.com reports. The firm set an "equal weight" rating and a $46.00 price target on the specialty retailer's stock. Stephens' price target points to a potential upside of 6.77% from the company's current price.

LW has been the topic of a number of other reports. Stifel Nicolaus lowered their price target on shares of Lamb Weston from $50.00 to $45.00 and set a "hold" rating on the stock in a research report on Thursday, April 2nd. Barclays lowered their price objective on shares of Lamb Weston from $55.00 to $46.00 and set an "overweight" rating for the company in a research note on Thursday, April 2nd. BNP Paribas Exane reduced their price target on Lamb Weston from $48.00 to $41.00 and set a "neutral" rating on the stock in a research report on Thursday, April 2nd. Weiss Ratings downgraded Lamb Weston from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, April 10th. Finally, Wells Fargo & Company cut their target price on Lamb Weston from $54.00 to $46.00 and set an "overweight" rating on the stock in a research report on Thursday, April 2nd. Three equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $47.82.

Lamb Weston Stock Performance

Shares of NYSE:LW traded up $0.97 during midday trading on Wednesday, reaching $43.09. The company's stock had a trading volume of 89,191 shares, compared to its average volume of 2,710,129. The firm has a market capitalization of $5.95 billion, a PE ratio of 20.13, a P/E/G ratio of 6.32 and a beta of 0.47. Lamb Weston has a twelve month low of $37.62 and a twelve month high of $67.07. The stock has a fifty day moving average of $42.22 and a 200 day moving average of $47.07. The company has a quick ratio of 0.69, a current ratio of 1.46 and a debt-to-equity ratio of 1.99.

Lamb Weston (NYSE:LW - Get Free Report) last announced its quarterly earnings results on Wednesday, April 1st. The specialty retailer reported $0.72 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.61 by $0.11. Lamb Weston had a return on equity of 23.77% and a net margin of 4.61%.The company had revenue of $1.56 billion during the quarter, compared to the consensus estimate of $1.49 billion. During the same period in the previous year, the company posted $1.10 earnings per share. Lamb Weston's revenue for the quarter was up 2.9% on a year-over-year basis. On average, equities analysts expect that Lamb Weston will post 2.85 EPS for the current fiscal year.

Insider Buying and Selling

In other Lamb Weston news, Director Jana Partners Management, Lp acquired 50,000 shares of the company's stock in a transaction dated Wednesday, April 15th. The shares were bought at an average cost of $43.19 per share, with a total value of $2,159,500.00. Following the purchase, the director directly owned 5,398,980 shares of the company's stock, valued at $233,181,946.20. This trade represents a 0.93% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Peter J. Bensen acquired 5,000 shares of the company's stock in a transaction dated Monday, April 6th. The shares were bought at an average price of $39.45 per share, for a total transaction of $197,250.00. Following the acquisition, the director directly owned 17,204 shares of the company's stock, valued at approximately $678,697.80. This trade represents a 40.97% increase in their position. The SEC filing for this purchase provides additional information. Insiders have acquired a total of 391,000 shares of company stock valued at $16,270,790 in the last three months. Insiders own 0.29% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of LW. AlphaQuest LLC raised its stake in shares of Lamb Weston by 115.5% in the third quarter. AlphaQuest LLC now owns 446 shares of the specialty retailer's stock worth $26,000 after purchasing an additional 239 shares during the last quarter. MCF Advisors LLC grew its holdings 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 valued at $27,000 after acquiring an additional 199 shares in the last quarter. Hantz Financial Services Inc. boosted its holdings in Lamb Weston by 380.7% in the 4th quarter. Hantz Financial Services Inc. now owns 721 shares of the specialty retailer's stock worth $30,000 after buying an additional 571 shares during the period. Transamerica Financial Advisors LLC lifted its stake in Lamb Weston by 121.1% in the 4th 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 in the last quarter. Finally, Eagle Bay Advisors LLC purchased a new position in Lamb Weston during the fourth quarter worth about $48,000. Institutional investors and hedge funds own 89.56% of the company's stock.

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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