Lifeway Foods (NASDAQ:LWAY) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Lifeway Foods from “hold” to “sell,” while Weiss Ratings also lowered its view to “hold.” Despite the negative revisions, the broader analyst consensus remains “Moderate Buy,” with an average price target of $35.
• Lifeway reported quarterly EPS of $0.01, missing the $0.26 consensus estimate, although revenue of $66.89 million exceeded expectations of $61.40 million.
• Insiders sold heavily: company shareholders sold 592,698 shares worth about $17.1 million over the past 90 days, while institutional investors and hedge funds own 36.39% of the stock.

Lifeway Foods (NASDAQ:LWAY - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

Other analysts have also recently issued reports about the stock. Weiss Ratings cut shares of Lifeway Foods from a "buy (b-)" rating to a "hold (c)" rating in a research note on Thursday. Benchmark restated a "buy" rating on shares of Lifeway Foods in a research note on Monday, June 15th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $35.00.

Lifeway Foods Stock Performance

Shares of LWAY stock opened at $25.82 on Friday. Lifeway Foods has a fifty-two week low of $17.31 and a fifty-two week high of $34.20. The stock's 50-day moving average is $29.01 and its two-hundred day moving average is $25.03. The company has a debt-to-equity ratio of 0.08, a current ratio of 2.14 and a quick ratio of 1.56. The firm has a market cap of $394.53 million, a P/E ratio of 36.89 and a beta of 0.44.

Lifeway Foods (NASDAQ:LWAY - Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The company reported $0.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.26 by ($0.25). The firm had revenue of $66.89 million for the quarter, compared to analyst estimates of $61.40 million. Lifeway Foods had a net margin of 4.48% and a return on equity of 12.60%.

Insider Transactions at Lifeway Foods

In related news, major shareholder Ludmila Smolyansky sold 100,000 shares of the firm's stock in a transaction that occurred on Wednesday, July 22nd. The stock was sold at an average price of $30.11, for a total value of $3,011,000.00. Following the transaction, the insider directly owned 507,207 shares of the company's stock, valued at approximately $15,272,002.77. This trade represents a 16.47% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, major shareholder Edward Smolyansky sold 75,000 shares of the business's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $25.45, for a total value of $1,908,750.00. Following the completion of the sale, the insider owned 894,793 shares of the company's stock, valued at approximately $22,772,481.85. This trade represents a 7.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 592,698 shares of company stock valued at $17,070,367 in the last ninety days. Insiders own 18.58% of the company's stock.

Hedge Funds Weigh In On Lifeway Foods

Several hedge funds and other institutional investors have recently added to or reduced their stakes in LWAY. BlackRock Inc. acquired a new stake in shares of Lifeway Foods in the second quarter worth $9,614,000. AWM Investment Company Inc. acquired a new position in Lifeway Foods in the 2nd quarter valued at $6,654,000. Marshall Wace LLP acquired a new position in Lifeway Foods in the 4th quarter valued at $2,984,000. Two Sigma Investments LP raised its holdings in Lifeway Foods by 260.4% in the 3rd quarter. Two Sigma Investments LP now owns 101,311 shares of the company's stock worth $2,812,000 after acquiring an additional 73,203 shares during the period. Finally, Tudor Investment Corp ET AL raised its holdings in Lifeway Foods by 73.0% in the 4th quarter. Tudor Investment Corp ET AL now owns 163,361 shares of the company's stock worth $3,958,000 after acquiring an additional 68,956 shares during the period. 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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