Lamb Weston (NYSE:LW) Shares Gap Up After Earnings Beat

Lamb Weston Holdings, Inc. (NYSE:LW - Get Free Report) shares gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $54.15, but opened at $59.94. Lamb Weston shares last traded at $58.76, with a volume of 1,305,322 shares changing hands.

The specialty retailer reported $1.10 earnings per share for the quarter, beating analysts' consensus estimates of $0.87 by $0.23. The business had revenue of $1.52 billion for the quarter, compared to analyst estimates of $1.50 billion. Lamb Weston had a net margin of 5.80% and a return on equity of 27.82%. The company's revenue was up 4.3% on a year-over-year basis. During the same period last year, the business earned $1.20 EPS.

Lamb Weston Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 30th. Stockholders of record on Friday, May 2nd will be given a dividend of $0.37 per share. The ex-dividend date is Friday, May 2nd. This represents a $1.48 annualized dividend and a dividend yield of 2.71%. Lamb Weston's dividend payout ratio is currently 58.04%.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on LW shares. Citigroup cut Lamb Weston from a "buy" rating to a "neutral" rating and decreased their target price for the stock from $90.00 to $68.00 in a research note on Friday, December 20th. Wells Fargo & Company reduced their price objective on shares of Lamb Weston from $72.00 to $66.00 and set an "overweight" rating for the company in a research report on Wednesday, April 2nd. Jefferies Financial Group increased their target price on shares of Lamb Weston from $80.00 to $95.00 and gave the company a "buy" rating in a research report on Tuesday, December 17th. Stifel Nicolaus cut their price target on shares of Lamb Weston from $68.00 to $63.00 and set a "hold" rating on the stock in a research note on Friday. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $57.00 price objective on shares of Lamb Weston in a research note on Wednesday, March 19th. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and four have assigned a buy rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $73.09.

Insider Activity at Lamb Weston

In other news, Director Robert A. Niblock acquired 3,000 shares of the stock in a transaction that occurred on Monday, January 13th. The shares were purchased at an average cost of $60.94 per share, for a total transaction of $182,820.00. Following the transaction, the director now directly owns 26,406 shares in the company, valued at approximately $1,609,181.64. This represents a 12.82 % increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. 0.72% of the stock is currently owned by insiders.

Institutional Trading of Lamb Weston

Several hedge funds and other institutional investors have recently made changes to their positions in the company. West Oak Capital LLC lifted its holdings in shares of Lamb Weston by 155.7% in the 4th quarter. West Oak Capital LLC now owns 450 shares of the specialty retailer's stock valued at $30,000 after buying an additional 274 shares during the period. Putney Financial Group LLC purchased a new position in shares of Lamb Weston in the fourth quarter valued at $34,000. Stonebridge Financial Group LLC acquired a new position in shares of Lamb Weston during the 4th quarter worth $35,000. SBI Securities Co. Ltd. acquired a new position in shares of Lamb Weston during the 4th quarter worth $36,000. Finally, Wingate Wealth Advisors Inc. purchased a new stake in shares of Lamb Weston in the 4th quarter worth about $47,000. Hedge funds and other institutional investors own 89.56% of the company's stock.

Lamb Weston Stock Performance

The company has a current ratio of 1.35, a quick ratio of 0.53 and a debt-to-equity ratio of 2.26. The stock has a market capitalization of $7.78 billion, a price-to-earnings ratio of 21.53, a PEG ratio of 1.40 and a beta of 0.48. The stock's 50 day moving average is $55.10 and its 200 day moving average is $65.50.

About Lamb Weston

Lamb Weston Holdings, Inc produces, distributes, and markets frozen potato products worldwide. The company operates through four segments: Global, Foodservice, Retail, and Other. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels.