Stock Traders Purchase High Volume of Put Options on Lamb Weston (NYSE:LW)

Key Points

• Unusually large put buying: Traders acquired 15,189 put options on Lamb Weston on Monday, a 264% increase over the average volume, signaling elevated bearish bets or hedging activity.
• Share price near 52-week low: LW traded down 1.9% to $39.77—essentially at its 52‑week low of $39.79—with daily volume below its average and short‑term moving averages well above the current price.
• Mixed fundamentals and insider interest: The company raised its quarterly dividend to $0.38 (a 3.8% yield) and reported a slight EPS beat, while an insider bought 50,000 shares at $48.65 amid a consensus analyst rating of "Hold" and a $53 average price target.

Lamb Weston (NYSE:LW - Get Free Report) was the recipient of unusually large options trading activity on Monday. Stock traders acquired 15,189 put options on the company. This is an increase of 264% compared to the average volume of 4,172 put options.

Lamb Weston Stock Down 1.9%

Shares of NYSE LW traded down $0.78 during midday trading on Monday, hitting $39.77. The stock had a trading volume of 831,411 shares, compared to its average volume of 2,596,659. The business's 50 day moving average is $45.61 and its 200-day moving average is $53.40. Lamb Weston has a 52 week low of $39.79 and a 52 week high of $67.07. The company has a quick ratio of 0.64, a current ratio of 1.43 and a debt-to-equity ratio of 2.08. The company has a market cap of $5.52 billion, a P/E ratio of 14.30, a PEG ratio of 6.05 and a beta of 0.43.

Lamb Weston (NYSE:LW - Get Free Report) last announced its quarterly earnings results on Friday, December 19th. The specialty retailer reported $0.69 earnings per share for the quarter, beating the consensus estimate of $0.68 by $0.01. The company had revenue of $1.62 billion during the quarter, compared to the consensus estimate of $1.59 billion. Lamb Weston had a net margin of 6.06% and a return on equity of 27.71%. The firm's quarterly revenue was up 1.1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.66 earnings per share. As a group, analysts predict that Lamb Weston will post 3.1 EPS for the current year.

Lamb Weston Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, February 27th. Stockholders of record on Friday, January 30th were paid a $0.38 dividend. This is an increase from Lamb Weston's previous quarterly dividend of $0.37. This represents a $1.52 annualized dividend and a dividend yield of 3.8%. The ex-dividend date was Friday, January 30th. Lamb Weston's dividend payout ratio (DPR) is presently 54.68%.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the stock. Stifel Nicolaus cut their price objective on shares of Lamb Weston from $63.00 to $50.00 and set a "hold" rating on the stock in a report on Monday, December 22nd. Barclays lowered their target price on shares of Lamb Weston from $68.00 to $55.00 and set an "overweight" rating for the company in a report on Tuesday, December 23rd. BNP Paribas Exane set a $48.00 price target on Lamb Weston in a research note on Monday, December 22nd. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $46.00 price objective on shares of Lamb Weston in a research report on Monday, December 29th. Finally, Jefferies Financial Group lifted their price objective on Lamb Weston from $67.00 to $70.00 and gave the company a "buy" rating in a research note on Friday, December 12th. Three investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $53.00.

Insider Buying and Selling at Lamb Weston

In other Lamb Weston news, insider Jan Eli B. Craps purchased 50,000 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The stock was bought at an average cost of $48.65 per share, for a total transaction of $2,432,500.00. Following the purchase, the insider directly owned 300,000 shares in the company, valued at $14,595,000. The trade was a 20.00% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.29% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Lamb Weston

Several institutional investors have recently modified their holdings of LW. Corient Private Wealth LLC raised its position in Lamb Weston by 53.2% in the 4th quarter. Corient Private Wealth LLC now owns 31,864 shares of the specialty retailer's stock worth $1,335,000 after buying an additional 11,063 shares during the last quarter. Hsbc Holdings PLC grew its stake in shares of Lamb Weston by 191.5% in the fourth quarter. Hsbc Holdings PLC now owns 471,886 shares of the specialty retailer's stock worth $19,922,000 after acquiring an additional 309,995 shares during the period. Walser Wealth Management Company A Ltd Liability Co bought a new stake in shares of Lamb Weston in the fourth quarter worth approximately $221,000. T. Rowe Price Investment Management Inc. raised its holdings in shares of Lamb Weston by 427.5% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 159,008 shares of the specialty retailer's stock valued at $6,661,000 after purchasing an additional 128,862 shares during the last quarter. Finally, Alpine Woods Capital Investors LLC bought a new position in Lamb Weston during the fourth quarter valued at approximately $301,000. 89.56% of the stock is owned by hedge funds and other institutional investors.

Lamb Weston Company Profile

Lamb Weston, traded on the NYSE under the symbol LW, is a leading global processor and supplier of frozen potato products. The company's portfolio includes a variety of potato-based items such as French fries, potato wedges, hash browns and specialty cuts tailored to the foodservice and retail grocery channels. Lamb Weston serves quick-service restaurants, full-service operators, grocery chains and food distributors, offering customized product formats, packaging solutions and seasoning options to meet evolving customer demands.

Founded in 1950 and headquartered in Eagle, Idaho, Lamb Weston has grown from a regional processor into one of the world's largest producers of frozen potato products.

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