Lamb Weston (NYSE:LW) Stock Price Up 3.6% - Still a Buy?

Key Points

• Lamb Weston shares rose 3.6% to about $49.61 in Monday trading, although volume was 71% below the average daily level.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and an average price target of $53.82, despite several analysts raising their targets.
• The company beat quarterly expectations with $0.75 EPS versus $0.59 expected and $1.67 billion in revenue. Lamb Weston also declared a $0.38 quarterly dividend, equivalent to a 3.0% yield, but its 83.06% payout ratio is relatively high.

Lamb Weston (NYSE:LW - Get Free Report)'s stock price was up 3.6% during trading on Monday. The stock traded as high as $49.93 and last traded at $49.6130. 645,273 shares changed hands during trading, a decline of 71% from the average daily volume of 2,258,738 shares. The stock had previously closed at $47.87.

Analyst Upgrades and Downgrades

LW has been the subject of a number of research analyst reports. TD Cowen upped their target price on Lamb Weston from $40.00 to $52.00 and gave the stock a "hold" rating in a research report on Tuesday, July 28th. Sanford C. Bernstein increased their price target on Lamb Weston from $42.00 to $57.00 and gave the company a "market perform" rating in a research note on Tuesday, July 28th. Barclays lifted their price target on Lamb Weston from $56.00 to $58.00 and gave the company an "overweight" rating in a research report on Thursday. Stifel Nicolaus lifted their price target on Lamb Weston from $45.00 to $52.00 and gave the company a "hold" rating in a research report on Monday, July 27th. Finally, Weiss Ratings downgraded Lamb Weston from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $53.82.

Lamb Weston Stock Up 4.5%

The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.77 and a current ratio of 1.45. The stock's fifty day simple moving average is $49.70 and its two-hundred day simple moving average is $46.17. The company has a market capitalization of $6.89 billion, a price-to-earnings ratio of 27.34, a P/E/G ratio of 1.74 and a beta of 0.49.

Lamb Weston (NYSE:LW - Get Free Report) last announced its quarterly earnings data on Tuesday, October 6th. The specialty retailer reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.59 by $0.16. Lamb Weston had a net margin of 3.85% and a return on equity of 23.27%. The company had revenue of $1.67 billion for the quarter, compared to analysts' expectations of $1.65 billion. During the same quarter in the previous year, the company posted $0.74 EPS. The business's revenue was up .7% compared to the same quarter last year. Lamb Weston has set its FY 2027 guidance at 3.050-3.350 EPS. On average, sell-side analysts anticipate that Lamb Weston will post 3.23 EPS for the current year.

Lamb Weston Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 4th. Shareholders of record on Friday, November 6th will be given a $0.38 dividend. The ex-dividend date is Friday, November 6th. This represents a $1.52 annualized dividend and a yield of 3.0%. Lamb Weston's payout ratio is 83.06%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Jones Financial Companies Lllp purchased a new stake in Lamb Weston in the 2nd quarter worth approximately $25,000. Edmond DE Rothschild Holding S.A. acquired a new stake in shares of Lamb Weston during the 2nd quarter valued at $29,000. Bell Investment Advisors Inc acquired a new stake in shares of Lamb Weston during the 2nd quarter valued at $36,000. Kimelman & Baird LLC purchased a new position in shares of Lamb Weston during the 2nd quarter valued at $43,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Lamb Weston during the 2nd quarter valued at $44,000. Institutional investors own 89.56% of the company's stock.

About Lamb Weston

Lamb Weston Holdings, Inc NYSE: LW is a global producer and marketer of frozen potato products. The company supplies French fries, potato wedges, hash browns, potato rounds, mashed potatoes and other specialty potato products to restaurants, foodservice distributors, retailers and food manufacturers.

Its product portfolio includes conventional and specialty frozen potato offerings, as well as sweet potato products and appetizer items. Lamb Weston sells products under its Lamb Weston and Grown in Idaho brands, while also providing private-label products for retail and foodservice customers.

The company's history dates to the 1950s, when it began producing frozen potato products in the Pacific Northwest.

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