Lifeway Foods (NASDAQ:LWAY) Share Price Breaks Below 50 Day Moving Average - Should You Sell?

Key Points

• Lifeway Foods shares fell below their 50-day moving average, trading as low as $22.17 and last changing hands at $22.26; the stock is also below its 200-day average of $24.52.
• Analyst views are mixed, but the consensus rating remains Buy with an average $34 price target. Recent ratings ranged from Strong Buy and Buy to Hold and Sell.
• The latest quarter’s EPS of $0.01 missed the $0.26 consensus, while revenue of $66.89 million topped estimates. Insiders bought 352,252 shares over the past 90 days, while selling 175,000.

Shares of Lifeway Foods, Inc. (NASDAQ:LWAY - Get Free Report) crossed below its fifty day moving average during trading on Tuesday. The stock has a fifty day moving average of $22.86 and traded as low as $22.17. Lifeway Foods shares last traded at $22.26, with a volume of 107,626 shares trading hands.

Analysts Set New Price Targets

Several analysts recently commented on LWAY shares. Weiss Ratings downgraded Lifeway Foods from a "buy (b-)" rating to a "hold (c)" rating in a research note on Thursday, August 13th. Freedom Capital upgraded Lifeway Foods from a "hold" rating to a "strong-buy" rating in a report on Friday, August 14th. Wall Street Zen downgraded Lifeway Foods from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. Finally, BTIG Research began coverage on shares of Lifeway Foods in a report on Thursday, August 20th. They set a "buy" rating and a $32.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Buy" and an average target price of $34.00.

Lifeway Foods Stock Down 3.7%

The company has a current ratio of 2.09, a quick ratio of 1.47 and a debt-to-equity ratio of 0.26. The firm's 50 day moving average price is $22.86 and its two-hundred day moving average price is $24.52. The company has a market capitalization of $336.35 million, a price-to-earnings ratio of 31.80 and a beta of 0.51.

Lifeway Foods (NASDAQ:LWAY - Get Free Report) last issued its 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 during 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 12.66%.

Insider Buying and Selling at Lifeway Foods

In other Lifeway Foods news, CEO Julie Smolyansky bought 2,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 19th. The shares were acquired at an average cost of $25.26 per share, with a total value of $50,520.00. Following the acquisition, the chief executive officer owned 2,214,095 shares of the company's stock, valued at $55,928,039.70. The trade was a 0.09% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder Divisadero Street Capital Mana bought 50,000 shares of the firm's stock in a transaction that occurred on Tuesday, October 6th. The shares were acquired at an average cost of $20.80 per share, for a total transaction of $1,040,000.00. Following the completion of the acquisition, the insider directly owned 2,451,792 shares in the company, valued at $50,997,273.60. The trade was a 2.08% increase in their position. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders have acquired 352,252 shares of company stock worth $8,346,030 and have sold 175,000 shares worth $4,171,350. Corporate insiders own 18.58% of the company's stock.

Hedge Funds Weigh In On Lifeway Foods

Institutional investors and hedge funds have recently modified their holdings of the stock. Wellington Management Group LLP bought a new position in shares of Lifeway Foods in the second quarter valued at about $17,459,000. BlackRock Inc. bought a new stake in shares of Lifeway Foods during the 2nd quarter worth about $9,614,000. Pillsbury Lake Capital LLC bought a new stake in shares of Lifeway Foods during the 2nd quarter worth about $8,704,597. AWM Investment Company Inc. bought a new stake in shares of Lifeway Foods during the 2nd quarter worth about $6,654,000. Finally, Dimensional Fund Advisors LP grew its stake in Lifeway Foods by 8.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 235,710 shares of the company's stock valued at $4,558,000 after buying an additional 19,035 shares during the last quarter. 36.39% of the stock is currently owned by institutional investors and hedge funds.

About Lifeway Foods

Lifeway Foods, Inc. is a U.S.-based food company that produces and markets cultured and probiotic dairy products. Its portfolio is centered on kefir, a fermented milk beverage available in a variety of flavors and formats, including low-fat, whole-milk, organic and lactose-free options. The company also offers drinkable yogurt, sour cream, farmer cheese, cream cheese and other cultured dairy products. Through its Green Valley Creamery brand, Lifeway markets lactose-free organic kefir and related dairy products, while its products are sold through grocery stores, natural and specialty food retailers, club stores, mass merchandise channels and e-commerce platforms.

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