Lamb Weston Holdings Inc. (NYSE:LW) finished Wednesday with a subtraction of -$1.09 to close at $99.33, a downside of -1.09 percent. An average of 1,441,700 shares of common stock have been traded in the last five days. There was a fall of -$3.08 in the past week, and it reached a new high 43 times over the past 12 months. The last 20 days have seen an average of 1,817,790 shares traded, while the 50-day average volume stands at 1,446,462.
LW stock has decreased by -10.12% in the last month. The company shares reached their 1-month lowest point of $98.95 on 08/09/23. With the stock rallying to its 52-week high on 07/25/23, shares of the company touched a low of $74.91 and a high of $117.38 in 52 weeks. It has reached a new high 28 times so far this year and achieved 11.16% or $9.97 in price. In spite of this, the price is down -15.38% from the 52-week high.
Insider Transactions
LW stock investors should be aware that Lamb Weston Holdings Inc. (LW) stock had its last reported insider trading activity 8 days ago on Aug 02. In this transaction, the insider spent $652,310. SENIOR VICE PRESIDENT, Miller Sharon L., disposed of 4,350 shares at a price of $115.00 on May 19. The insider now owns more than $500,250 worth of shares. Prior to that, VP AND CONTROLLER Jones Gregory W went on to Sale 1,000 shares at $97.49 each on Jan 12. An amount of $97,493 was transacted.
Valuation Metrics
Lamb Weston Holdings Inc. (LW) has a trailing price-to-earnings (P/E) ratio of 14.34. The stock’s beta is 0.53. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.71, the price-to-book (PB) ratio at 10.27.
The company has a payout ratio of 14.60%. The company’s most recent quarterly dividend payment was $0.28 a share, without any change from last year. Its latest increase dividend $0.0350 reported on Wednesday December 14 2022.
Financial Health
The quick ratio of Lamb Weston Holdings Inc. for the three months ended May 30 was 0.90, and the current ratio was 1.60, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 2.30 and a total debt to equity ratio of 2.45 for the quarter ending May 30. Lamb Weston Holdings Inc.’s EBITDA margin for the year ending May 30 is 19.79%, while its operating margin for the same period stands at 16.50%. Its gross profit as reported stood at $1.43 billion compared to revenue of $5.35 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Lamb Weston Holdings Inc.’s return on assets was 19.60%.
Earnings Surprise
For the three-month period that ended May 30, Lamb Weston Holdings Inc. had $3.25 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $498.8 million in the quarter, while revenues of $175.1 million were grew 93.58%. The analyst consensus anticipated Lamb Weston Holdings Inc.’s latest quarter earnings to come in at $1.05 per share, but it turned out to be $1.22, a 16.20% surprise. For the quarter, EBITDA amounted to $256.5 million. Shareholders own equity worth $145.67 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Lamb Weston Holdings Inc. (LW) price momentum. RSI 9-day as of the close on 09 August was 22.73%, suggesting the stock is oversold, with historical volatility in this time frame at 17.87%.
As of today, LW’s price is $101.40 -3.01% or -$3.08 from its 5-day moving average. LW is currently trading -11.62% lower than its 20-day SMA and +1.06% higher than its 100-day SMA. However, the stock’s current price level is -9.25% below the SMA50 and +20.14% above the SMA200.
The stochastic %K and %D were 5.84% and 8.06%, respectively, and the average true range (ATR) was 2.55. With the 14-day stochastic at 2.06% and the average true range at 2.49, the RSI (14) stands at 25.85%. The stock has reached -1.08 on the 9-day MACD Oscillator while the 14-day reading was at -2.83.
Analyst Ratings
Stifel upgraded Lamb Weston Holdings Inc. (NYSE: LW) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Hold. The consensus rating for Lamb Weston Holdings Inc. (LW) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell LW, while 1 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 5 others rate it as a “buy”.
What is LW’s price target for the next 12 months?
Analysts predict a range of price targets between $112.00 and $135.00, with a median target of $125.00. Taking a look at these predictions, the average price target given by analysts for Lamb Weston Holdings Inc. (LW) stock is $124.57.
