Lifeway Foods (NASDAQ:LWAY) Share Price Passes Above 200-Day Moving Average - Here's Why

Key Points

• Lifeway Foods stock moved above its 200-day moving average, trading as high as $31.05 and last changing hands at $30.44. The move came on volume of 87,532 shares.
• Analyst sentiment remains constructive, with Benchmark reiterating a buy rating and the stock carrying a consensus Moderate Buy rating. MarketBeat data shows an average price target of $34.33.
• The company posted solid quarterly results, reporting EPS of $0.30 in line with estimates while revenue of $63.01 million topped expectations. Insider and institutional activity was mixed, with a major shareholder recently selling shares while several funds increased positions.

Lifeway Foods, Inc. (NASDAQ:LWAY - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $24.27 and traded as high as $31.05. Lifeway Foods shares last traded at $30.44, with a volume of 87,532 shares trading hands.

Analysts Set New Price Targets

LWAY has been the subject of a number of research reports. Benchmark restated a "buy" rating on shares of Lifeway Foods in a research report on Monday, June 15th. Weiss Ratings upgraded Lifeway Foods from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, May 14th. Two investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, Lifeway Foods has an average rating of "Moderate Buy" and an average target price of $34.33.

Lifeway Foods Price Performance

The company has a quick ratio of 1.56, a current ratio of 2.14 and a debt-to-equity ratio of 0.08. The stock's 50 day moving average price is $27.38 and its two-hundred day moving average price is $24.27. The firm has a market capitalization of $465.12 million, a price-to-earnings ratio of 31.38 and a beta of 0.45.

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

Insider Transactions at Lifeway Foods

In other news, major shareholder Edward Smolyansky sold 39,098 shares of Lifeway Foods stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $29.41, for a total transaction of $1,149,872.18. Following the completion of the sale, the insider directly owned 1,071,709 shares in the company, valued at $31,518,961.69. The trade was a 3.52% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Divisadero Street Capital Mana acquired 33,174 shares of the company's stock in a transaction that occurred on Friday, May 15th. The stock was purchased at an average price of $25.27 per share, for a total transaction of $838,306.98. Following the acquisition, the insider directly owned 2,101,540 shares of the company's stock, valued at $53,105,915.80. The trade was a 1.60% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold 3,906,454 shares of company stock valued at $80,235,639 in the last three months. Corporate insiders own 18.58% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Strs Ohio bought a new position in shares of Lifeway Foods during the 1st quarter valued at $90,000. Rhumbline Advisers boosted its holdings in Lifeway Foods by 8.2% in the first quarter. Rhumbline Advisers now owns 6,068 shares of the company's stock worth $148,000 after purchasing an additional 462 shares in the last quarter. Geode Capital Management LLC increased its position in Lifeway Foods by 6.6% during the second quarter. Geode Capital Management LLC now owns 124,726 shares of the company's stock worth $3,075,000 after buying an additional 7,718 shares during the last quarter. JPMorgan Chase & Co. increased its position in Lifeway Foods by 293.6% during the second 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, First Trust Advisors LP raised its holdings in Lifeway Foods by 6.8% during the second quarter. First Trust Advisors LP now owns 17,178 shares of the company's stock valued at $423,000 after buying an additional 1,091 shares in the last quarter. Institutional investors and hedge funds own 36.39% of the company's stock.

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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