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

Lamb Weston Holdings, Inc. (NYSE:LWGet Free Report) was the target of some unusual options trading on Tuesday. Stock traders purchased 35,906 put options on the company. This is an increase of approximately 291% compared to the average volume of 9,194 put options.

Lamb Weston Price Performance

LW opened at $60.89 on Thursday. The stock has a market capitalization of $8.68 billion, a PE ratio of 24.07, a P/E/G ratio of 1.47 and a beta of 0.73. The company’s 50 day simple moving average is $70.13 and its 200 day simple moving average is $68.96. Lamb Weston has a 1 year low of $52.99 and a 1 year high of $110.46. The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.53 and a current ratio of 1.35.

Lamb Weston (NYSE:LWGet Free Report) last released its quarterly earnings data on Thursday, December 19th. The specialty retailer reported $0.66 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.01 by ($0.35). The business had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.67 billion. Lamb Weston had a return on equity of 27.82% and a net margin of 5.80%. Lamb Weston’s revenue was down 7.5% on a year-over-year basis. During the same period in the previous year, the company earned $1.45 EPS. As a group, sell-side analysts expect that Lamb Weston will post 3.11 EPS for the current year.

Lamb Weston Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 28th. Shareholders of record on Friday, January 31st will be paid a dividend of $0.37 per share. This represents a $1.48 dividend on an annualized basis and a dividend yield of 2.43%. The ex-dividend date of this dividend is Friday, January 31st. This is a boost from Lamb Weston’s previous quarterly dividend of $0.36. Lamb Weston’s payout ratio is currently 56.92%.

Analyst Ratings Changes

Several research firms have recently commented on LW. Citigroup lowered shares of Lamb Weston from a “buy” rating to a “neutral” rating and lowered their price target for the company from $90.00 to $68.00 in a research report on Friday, December 20th. Jefferies Financial Group increased their target price on Lamb Weston from $80.00 to $95.00 and gave the company a “buy” rating in a report on Tuesday, December 17th. Bank of America increased their target price on Lamb Weston from $68.00 to $80.00 and gave the company a “neutral” rating in a report on Monday, October 21st. Barclays decreased their price objective on Lamb Weston from $87.00 to $69.00 and set an “overweight” rating on the stock in a research note on Monday, December 23rd. Finally, Deutsche Bank Aktiengesellschaft assumed coverage on Lamb Weston in a research note on Thursday, December 12th. They set a “hold” rating and a $81.00 price objective on the stock. Eight analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $81.00.

View Our Latest Stock Analysis on LW

Insider Activity

In related news, Director Charles A. Blixt bought 1,200 shares of the stock in a transaction on Monday, December 23rd. The shares were bought at an average cost of $63.25 per share, for a total transaction of $75,900.00. Following the completion of the transaction, the director now owns 22,982 shares of the company’s stock, valued at $1,453,611.50. This 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 hyperlink. Also, Director Robert A. Niblock purchased 3,000 shares of the stock in a transaction that occurred on Monday, January 13th. The stock was purchased at an average price of $60.94 per share, for a total transaction of $182,820.00. Following the acquisition, the director now owns 26,406 shares in the company, valued at approximately $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. Corporate insiders own 0.72% of the company’s stock.

Institutional Investors Weigh In On Lamb Weston

A number of large investors have recently modified their holdings of LW. Southpoint Capital Advisors LP acquired a new position in Lamb Weston in the 3rd quarter worth $129,480,000. Clarkston Capital Partners LLC lifted its holdings in Lamb Weston by 108.7% in the 3rd quarter. Clarkston Capital Partners LLC now owns 3,107,929 shares of the specialty retailer’s stock worth $201,207,000 after buying an additional 1,618,570 shares in the last quarter. Massachusetts Financial Services Co. MA acquired a new position in shares of Lamb Weston in the third quarter worth about $86,883,000. TPG GP A LLC lifted its stake in shares of Lamb Weston by 74.4% in the second quarter. TPG GP A LLC now owns 2,924,230 shares of the specialty retailer’s stock worth $245,869,000 after acquiring an additional 1,247,206 shares in the last quarter. Finally, Marshall Wace LLP lifted its stake in shares of Lamb Weston by 78.5% in the second quarter. Marshall Wace LLP now owns 1,888,556 shares of the specialty retailer’s stock worth $158,790,000 after acquiring an additional 830,511 shares in the last quarter. Institutional investors and hedge funds own 89.56% of the company’s stock.

Lamb Weston Company Profile

(Get Free Report)

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.

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