Lifeway Foods (NASDAQ:LWAY) Stock Passes Above Two Hundred Day Moving Average - Here's Why

Key Points

• Technical breakout: Lifeway shares crossed above their 200-day moving average of $23.05, trading as high as $27.41 and last at $26.93 on volume of 47,345 shares.
• Analyst view: The consensus rating is a Moderate Buy with an average price target of $34.33, though individual reports range from Hold to Buy (Morgan Stanley $35 target, Benchmark Buy).
• Fundamentals and insider activity: The company missed EPS estimates ($0.16 vs. $0.29) on $55.36M revenue, and insiders have sold 75,000 shares in the last three months while retaining about 18.86% ownership.

Shares of Lifeway Foods, Inc. (NASDAQ:LWAY - Get Free Report) crossed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $23.05 and traded as high as $27.41. Lifeway Foods shares last traded at $26.93, with a volume of 47,345 shares.

Analysts Set New Price Targets

Several equities research analysts have issued reports on LWAY shares. Wall Street Zen downgraded Lifeway Foods from a "buy" rating to a "hold" rating in a report on Saturday, March 21st. Weiss Ratings reiterated a "hold (c)" rating on shares of Lifeway Foods in a research report on Friday, March 27th. Morgan Stanley set a $35.00 target price on Lifeway Foods in a research note on Wednesday, January 14th. Finally, Benchmark restated a "buy" rating on shares of Lifeway Foods in a report on Wednesday, January 14th. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $34.33.

Lifeway Foods Stock Down 2.0%

The company has a market capitalization of $407.99 million, a P/E ratio of 29.92 and a beta of 0.23. The business has a fifty day moving average price of $22.31 and a 200 day moving average price of $23.05.

Lifeway Foods (NASDAQ:LWAY - Get Free Report) last announced its earnings results on Tuesday, March 17th. The company reported $0.16 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.29 by ($0.13). Lifeway Foods had a net margin of 6.52% and a return on equity of 17.25%. The firm had revenue of $55.36 million during the quarter, compared to analyst estimates of $55.00 million.

Insiders Place Their Bets

In related news, major shareholder Edward Smolyansky sold 14,353 shares of the stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $17.77, for a total transaction of $255,052.81. Following the completion of the transaction, the insider owned 1,101,642 shares in the company, valued at approximately $19,576,178.34. This represents a 1.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, major shareholder Ludmila Smolyansky sold 15,000 shares of the firm's stock in a transaction on Monday, April 20th. The shares were sold at an average price of $26.50, for a total transaction of $397,500.00. Following the completion of the transaction, the insider directly owned 732,823 shares of the company's stock, valued at approximately $19,419,809.50. This trade represents a 2.01% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 75,000 shares of company stock worth $1,563,125. 18.86% of the stock is currently owned by insiders.

Institutional Trading of Lifeway Foods

Institutional investors and hedge funds have recently bought and sold shares of the stock. Larson Financial Group LLC bought a new position in Lifeway Foods in the third quarter valued at approximately $31,000. BNP Paribas Financial Markets boosted its holdings in shares of Lifeway Foods by 577.3% in the 2nd quarter. BNP Paribas Financial Markets now owns 1,551 shares of the company's stock valued at $38,000 after buying an additional 1,322 shares during the last quarter. Raymond James Financial Inc. bought a new position in shares of Lifeway Foods in the second quarter valued at $40,000. New York State Common Retirement Fund grew its stake in shares of Lifeway Foods by 433.3% in the third quarter. New York State Common Retirement Fund now owns 1,600 shares of the company's stock valued at $44,000 after buying an additional 1,300 shares in the last quarter. Finally, State of Alaska Department of Revenue increased its holdings in Lifeway Foods by 302.0% during the fourth quarter. State of Alaska Department of Revenue now owns 2,967 shares of the company's stock worth $71,000 after buying an additional 2,229 shares during the last quarter. Institutional investors 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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