Lifeway Foods (NASDAQ:LWAY) Posts Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Key Points

• Lifeway Foods reported earnings of $0.28 EPS for the quarter, exceeding analysts' estimates by $0.10, although revenue fell short of expectations at $53.90 million.
• The company's stock increased by 6.8% following the earnings announcement, reaching $29.50 with significant trading volume of 284,902 shares.
• Insider trading activity included CEO Julie Smolyansky selling 50,000 shares, reducing her ownership by 2.29%, as part of a trend where insiders sold a total of 78,566 shares over the last three months.

Lifeway Foods (NASDAQ:LWAY - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $0.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.18 by $0.10, Zacks reports. Lifeway Foods had a return on equity of 14.32% and a net margin of 5.49%. The firm had revenue of $53.90 million during the quarter, compared to analyst estimates of $54.00 million.

Lifeway Foods Stock Down 0.6%

Shares of NASDAQ LWAY traded down $0.19 during midday trading on Friday, reaching $29.80. The company had a trading volume of 47,755 shares, compared to its average volume of 74,057. Lifeway Foods has a one year low of $17.82 and a one year high of $31.00. The firm's fifty day moving average price is $25.75 and its 200-day moving average price is $23.85. The stock has a market cap of $453.85 million, a PE ratio of 43.19 and a beta of 0.69.

Insider Activity

In other Lifeway Foods news, Director Pol Sikar sold 3,000 shares of the company's stock in a transaction that occurred on Tuesday, May 20th. The stock was sold at an average price of $22.35, for a total transaction of $67,050.00. Following the completion of the transaction, the director owned 23,858 shares of the company's stock, valued at $533,226.30. This represents a 11.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Jason Scott Scher sold 16,366 shares of the company's stock in a transaction that occurred on Friday, June 27th. The stock was sold at an average price of $24.24, for a total value of $396,711.84. Following the transaction, the director owned 1 shares in the company, valued at $24.24. This trade represents a 99.99% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 78,566 shares of company stock valued at $1,788,672. Insiders own 18.86% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Geode Capital Management LLC grew its holdings in shares of Lifeway Foods by 6.6% during the 2nd quarter. Geode Capital Management LLC now owns 124,726 shares of the company's stock worth $3,075,000 after acquiring an additional 7,718 shares during the period. Gabelli Funds LLC grew its stake in shares of Lifeway Foods by 52.6% in the 2nd quarter. Gabelli Funds LLC now owns 98,644 shares of the company's stock worth $2,432,000 after buying an additional 33,988 shares during the last quarter. First Trust Advisors LP grew its stake in shares of Lifeway Foods by 6.8% in the 2nd quarter. First Trust Advisors LP now owns 17,178 shares of the company's stock worth $423,000 after buying an additional 1,091 shares during the last quarter. JPMorgan Chase & Co. grew its stake in shares of Lifeway Foods by 293.6% in the 2nd quarter. JPMorgan Chase & Co. now owns 13,472 shares of the company's stock worth $332,000 after buying an additional 10,049 shares during the last quarter. Finally, Jane Street Group LLC purchased a new stake in shares of Lifeway Foods in the 2nd quarter worth approximately $212,000. Hedge funds and other institutional investors own 36.39% of the company's stock.

Wall Street Analysts Forecast Growth

LWAY has been the subject of several research analyst reports. Wall Street Zen raised Lifeway Foods from a "hold" rating to a "buy" rating in a research note on Saturday. Lake Street Capital reaffirmed a "buy" rating and set a $33.00 price target (up previously from $30.00) on shares of Lifeway Foods in a research note on Wednesday.

Lifeway Foods Company Profile

Lifeway Foods, Inc produces and markets probiotic-based products in the United States and internationally. Its primary product is drinkable kefir, a cultured dairy product in various organic and non-organic sizes, flavors, and types. The company offers European-style soft cheeses; cream and other products; ProBugs, a line of kefir products designed for children; drinkable yogurt; and fresh made butter and sour cream.