Lamb Weston (NYSE:LW) to Issue Quarterly Dividend of $0.37

Key Points

• Lamb Weston has declared a quarterly dividend of $0.37 per share, with record date on October 31 and payment on November 28, reflecting a 2.8% yield.
• The company has a dividend payout ratio of 38.7%, indicating that the dividend is well-supported by earnings, with earnings expectations at $3.64 per share for the upcoming year.
• Lamb Weston shares recently traded down by 1.8%, with a current stock price of $52.81, while analysts maintain a consensus rating of "Hold" with a target price around $65.33.

Lamb Weston (NYSE:LW - Get Free Report) declared a quarterly dividend on Thursday, September 25th, RTT News reports. Investors of record on Friday, October 31st will be given a dividend of 0.37 per share by the specialty retailer on Friday, November 28th. This represents a c) dividend on an annualized basis and a yield of 2.8%.

Lamb Weston has a dividend payout ratio of 38.7% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Lamb Weston to earn $3.64 per share next year, which means the company should continue to be able to cover its $1.48 annual dividend with an expected future payout ratio of 40.7%.

Lamb Weston Stock Down 1.8%

NYSE:LW traded down $0.96 during midday trading on Thursday, reaching $52.81. The company had a trading volume of 1,062,030 shares, compared to its average volume of 1,327,621. Lamb Weston has a 12-month low of $47.87 and a 12-month high of $83.98. The company has a current ratio of 1.38, a quick ratio of 0.68 and a debt-to-equity ratio of 2.12. The firm has a market capitalization of $7.36 billion, a price-to-earnings ratio of 21.04, a PEG ratio of 2.19 and a beta of 0.49. The stock's fifty day simple moving average is $55.40 and its 200-day simple moving average is $53.89.

Lamb Weston (NYSE:LW - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The specialty retailer reported $0.87 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.64 by $0.23. The company had revenue of $1.68 billion during the quarter, compared to the consensus estimate of $1.59 billion. Lamb Weston had a return on equity of 27.99% and a net margin of 5.54%.Lamb Weston's revenue for the quarter was up 4.0% on a year-over-year basis. During the same period in the previous year, the business earned $0.78 EPS. Lamb Weston has set its FY 2026 guidance at EPS. On average, sell-side analysts anticipate that Lamb Weston will post 3.1 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. JPMorgan Chase & Co. assumed coverage on Lamb Weston in a report on Wednesday, August 20th. They set a "neutral" rating and a $57.00 price target for the company. Bank of America decreased their price target on Lamb Weston from $60.00 to $56.00 and set a "neutral" rating for the company in a report on Wednesday, June 18th. Barclays lifted their price target on Lamb Weston from $61.00 to $68.00 and gave the stock an "overweight" rating in a report on Friday, July 25th. Finally, Wells Fargo & Company lifted their target price on Lamb Weston from $65.00 to $66.00 and gave the stock an "overweight" rating in a research report on Thursday, July 24th. Three analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $65.33.

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.

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