Lamb Weston (NYSE:LW) Shares Gap Down on Disappointing Earnings

Lamb Weston Holdings, Inc. (NYSE:LW)’s stock price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $78.22, but opened at $65.96. Lamb Weston shares last traded at $65.34, with a volume of 1,796,800 shares changing hands.

The specialty retailer reported $0.66 earnings per share for the quarter, missing analysts’ consensus estimates of $1.01 by ($0.35). Lamb Weston had a return on equity of 34.33% and a net margin of 9.57%. The firm had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.67 billion. During the same period in the prior year, the firm earned $1.45 EPS. The firm’s revenue was down 7.5% on a year-over-year basis.

Lamb Weston Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, November 29th. Stockholders of record on Friday, November 1st were paid a $0.36 dividend. The ex-dividend date of this dividend was Friday, November 1st. This represents a $1.44 annualized dividend and a dividend yield of 2.30%. Lamb Weston’s dividend payout ratio is presently 33.80%.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Citigroup boosted their target price on Lamb Weston from $76.00 to $90.00 and gave the stock a “buy” rating in a research report on Tuesday, October 22nd. TD Cowen increased their price target on shares of Lamb Weston from $61.00 to $65.00 and gave the company a “hold” rating in a research report on Tuesday, September 24th. Deutsche Bank Aktiengesellschaft initiated coverage on Lamb Weston in a research note on Thursday, December 12th. They issued a “hold” rating and a $81.00 target price on the stock. Jefferies Financial Group increased their price target on Lamb Weston from $80.00 to $95.00 and gave the company a “buy” rating in a research report on Tuesday. Finally, JPMorgan Chase & Co. lifted their target price on Lamb Weston from $68.00 to $78.00 and gave the stock a “neutral” rating in a research note on Monday. One research analyst has rated the stock with a sell rating, seven have given a hold rating and six have given a buy rating to the company. Based on data from MarketBeat, Lamb Weston presently has an average rating of “Hold” and a consensus price target of $84.25.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. City State Bank increased its position in shares of Lamb Weston by 56.2% during the 3rd quarter. City State Bank now owns 417 shares of the specialty retailer’s stock valued at $27,000 after purchasing an additional 150 shares during the last quarter. Crewe Advisors LLC lifted its position in shares of Lamb Weston by 357.5% during the 2nd quarter. Crewe Advisors LLC now owns 334 shares of the specialty retailer’s stock valued at $28,000 after buying an additional 261 shares during the last quarter. Northwest Investment Counselors LLC bought a new stake in Lamb Weston in the 3rd quarter valued at about $29,000. Riverview Trust Co purchased a new position in shares of Lamb Weston in the third quarter worth about $35,000. Finally, Family Firm Inc. purchased a new stake in shares of Lamb Weston during the 2nd quarter valued at approximately $36,000. Institutional investors own 89.56% of the company’s stock.

Lamb Weston Price Performance

The firm has a market cap of $8.91 billion, a P/E ratio of 14.67, a PEG ratio of 1.34 and a beta of 0.70. The company has a current ratio of 1.19, a quick ratio of 0.54 and a debt-to-equity ratio of 1.87. The business’s fifty day simple moving average is $76.94 and its 200-day simple moving average is $72.75.

Lamb Weston Company Profile

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.