Lamb Weston Target of Unusually Large Options Trading (NYSE:LW)

Lamb Weston Holdings, Inc. (NYSE:LW) was the recipient of some unusual options trading activity on Friday. Stock traders bought 31,574 put options on the stock. This is an increase of approximately 301% compared to the average daily volume of 7,866 put options.

Lamb Weston Trading Up 6.2 %

LW stock traded up $3.02 during midday trading on Friday, reaching $51.67. The company’s stock had a trading volume of 1,851,489 shares, compared to its average volume of 2,709,983. The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.53 and a current ratio of 1.35. The stock has a fifty day simple moving average of $57.48 and a two-hundred day simple moving average of $66.51. Lamb Weston has a 1 year low of $47.90 and a 1 year high of $107.50. The firm has a market capitalization of $7.37 billion, a price-to-earnings ratio of 20.34, a PEG ratio of 1.40 and a beta of 0.76.

Lamb Weston (NYSE:LW) last released its earnings results on Thursday, December 19th. 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 27.82% and a net margin of 5.80%. The business had revenue of $1.60 billion during the quarter, compared to analysts’ expectations of $1.67 billion. During the same quarter in the previous year, the business earned $1.45 EPS. The business’s revenue for the quarter was down 7.5% on a year-over-year basis. On average, equities research analysts predict that Lamb Weston will post 3.1 EPS for the current year.

Lamb Weston Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, February 28th. Stockholders of record on Friday, January 31st were given a dividend of $0.37 per share. This is an increase from Lamb Weston’s previous quarterly dividend of $0.36. The ex-dividend date was Friday, January 31st. This represents a $1.48 dividend on an annualized basis and a dividend yield of 2.86%. Lamb Weston’s dividend payout ratio is presently 58.50%.

Insider Activity

In other Lamb Weston news, Director Charles A. Blixt purchased 1,200 shares of the company’s stock in a transaction on Monday, December 23rd. The stock was acquired at an average cost of $63.25 per share, for a total transaction of $75,900.00. Following the purchase, the director now directly owns 22,982 shares of the company’s stock, valued at $1,453,611.50. This trade represents a 5.51 % increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Robert A. Niblock purchased 3,000 shares of the company’s stock in a transaction on Monday, January 13th. The stock was acquired at an average price of $60.94 per share, with a total value of $182,820.00. Following the completion of the purchase, the director now directly owns 26,406 shares in the company, valued at $1,609,181.64. This trade represents a 12.82 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 0.72% of the company’s stock.

Hedge Funds Weigh In On Lamb Weston

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Alberta Investment Management Corp bought a new stake in Lamb Weston during the fourth quarter valued at about $2,641,000. Atria Wealth Solutions Inc. bought a new stake in Lamb Weston during the fourth quarter valued at about $2,850,000. Leeward Investments LLC MA boosted its position in Lamb Weston by 41.5% during the fourth quarter. Leeward Investments LLC MA now owns 156,473 shares of the specialty retailer’s stock valued at $10,457,000 after purchasing an additional 45,904 shares in the last quarter. HB Wealth Management LLC boosted its position in Lamb Weston by 6.5% during the fourth quarter. HB Wealth Management LLC now owns 13,343 shares of the specialty retailer’s stock valued at $892,000 after purchasing an additional 817 shares in the last quarter. Finally, Nicola Wealth Management LTD. bought a new stake in Lamb Weston during the third quarter valued at about $6,474,000. Institutional investors own 89.56% of the company’s stock.

Analyst Upgrades and Downgrades

LW has been the topic of several recent research reports. Sanford C. Bernstein initiated coverage on Lamb Weston in a report on Tuesday, December 3rd. They set a “market perform” rating and a $85.00 price objective on the stock. Barclays decreased their price objective on Lamb Weston from $87.00 to $69.00 and set an “overweight” rating on the stock in a report on Monday, December 23rd. Stifel Nicolaus decreased their price objective on Lamb Weston from $80.00 to $68.00 and set a “hold” rating on the stock in a report on Friday, December 20th. Citigroup cut Lamb Weston from a “buy” rating to a “neutral” rating and decreased their price objective for the stock from $90.00 to $68.00 in a report on Friday, December 20th. Finally, StockNews.com raised Lamb Weston to a “sell” rating in a report on Monday, February 24th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and four have given a buy rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $76.73.

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.