Lamb Weston (NYSE:LW) Reaches New 1-Year Low on Disappointing Earnings

Shares of Lamb Weston Holdings, Inc. (NYSE:LW - Get Free Report) hit a new 52-week low on Friday following a dissappointing earnings announcement. The stock traded as low as $78.76 and last traded at $79.98, with a volume of 1784580 shares changing hands. The stock had previously closed at $81.53.

The specialty retailer reported $1.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.40 by ($0.20). Lamb Weston had a net margin of 17.71% and a return on equity of 63.19%. The business had revenue of $1.46 billion during the quarter, compared to analyst estimates of $1.65 billion. During the same quarter in the prior year, the company posted $1.43 EPS. The company's quarterly revenue was up 16.3% compared to the same quarter last year.

Lamb Weston Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Friday, May 3rd will be issued a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a yield of 1.80%. The ex-dividend date is Thursday, May 2nd. Lamb Weston's dividend payout ratio is currently 18.73%.

Analysts Set New Price Targets

A number of research analysts have issued reports on LW shares. Bank of America cut their target price on shares of Lamb Weston from $138.00 to $113.00 and set a "buy" rating on the stock in a research report on Friday. StockNews.com downgraded shares of Lamb Weston from a "hold" rating to a "sell" rating in a research report on Friday, January 5th. Stifel Nicolaus cut their target price on shares of Lamb Weston from $130.00 to $115.00 and set a "buy" rating on the stock in a research report on Friday. BNP Paribas began coverage on shares of Lamb Weston in a research report on Monday, March 11th. They set an "outperform" rating and a $128.00 target price on the stock. Finally, Wells Fargo & Company cut their price target on shares of Lamb Weston from $128.00 to $98.00 and set an "overweight" rating on the stock in a research report on Friday. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating and nine have assigned a buy rating to the company. According to data from MarketBeat, Lamb Weston has an average rating of "Moderate Buy" and a consensus price target of $122.00.

Hedge Funds Weigh In On Lamb Weston

A number of institutional investors have recently added to or reduced their stakes in LW. Great Valley Advisor Group Inc. increased its holdings in shares of Lamb Weston by 3.4% in the fourth quarter. Great Valley Advisor Group Inc. now owns 3,065 shares of the specialty retailer's stock valued at $332,000 after purchasing an additional 101 shares during the last quarter. FinTrust Capital Advisors LLC increased its holdings in shares of Lamb Weston by 24.4% in the third quarter. FinTrust Capital Advisors LLC now owns 582 shares of the specialty retailer's stock valued at $54,000 after purchasing an additional 114 shares during the last quarter. Imprint Wealth LLC increased its holdings in shares of Lamb Weston by 2.6% in the second quarter. Imprint Wealth LLC now owns 4,729 shares of the specialty retailer's stock valued at $544,000 after purchasing an additional 118 shares during the last quarter. MML Investors Services LLC boosted its position in shares of Lamb Weston by 0.7% in the first quarter. MML Investors Services LLC now owns 16,823 shares of the specialty retailer's stock valued at $1,758,000 after acquiring an additional 119 shares during the period. Finally, Horizon Investments LLC boosted its position in shares of Lamb Weston by 6.2% in the second quarter. Horizon Investments LLC now owns 2,245 shares of the specialty retailer's stock valued at $257,000 after acquiring an additional 132 shares during the period. 89.56% of the stock is currently owned by institutional investors and hedge funds.

Lamb Weston Stock Performance

The stock's 50-day moving average price is $101.93 and its 200-day moving average price is $99.72. The company has a market cap of $11.52 billion, a P/E ratio of 10.37, a PEG ratio of 1.14 and a beta of 0.72. The company has a debt-to-equity ratio of 1.95, a current ratio of 1.29 and a quick ratio of 0.57.

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.