Lamb Weston Holdings Inc. (NYSE:LW) saw an upside of 1.88% to close Tuesday at $96.27 after adding $1.78 on the day. The 5-day average trading volume is 1,528,520 shares of the company’s common stock. It has gained $96.70 in the past week and touched a new high 2 times within the past 5 days. An average of 1,866,635 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,494,828.
LW’s 1-month performance is -14.57% or -$16.69 on its low of $93.00 reached on 08/18/23. The company’s shares have touched a 52-week low of $74.91 and high of $117.38, with the stock’s rally to the 52-week high happening on 07/25/23. YTD, LW has achieved 7.73% or $6.91 and has reached a new high 28 times. However, the current price is down -17.99% from the 52-week high price.
Insider Transactions
LW stock investors last saw insider trading activity on Aug 02.Spytek Eryk J (GEN COUNSEL & CHIEF COMPL OFF) most recently sold 6,319 shares at $103.23 per share on Aug 02. This transaction cost the insider $652,310. SENIOR VICE PRESIDENT, Miller Sharon L., sold 4,350 shares at a price of $115.00 on May 19. Then, on Jan 12, VP AND CONTROLLER Jones Gregory W sold 1,000 shares at a price of $97.49 per share. This transaction amounted to $97,493.
Valuation Metrics
LW stock has a beta of 0.55. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.58 while the price-to-book (PB) in the most recent quarter is 9.96, with the price to cash flow ratio at 537.73.
Lamb Weston Holdings Inc.’s quick ratio for the period ended May 30 was 0.90, with the current ratio over the same period at 1.60. As well, the company’s long term debt to equity for the quarter ending May 30 was 2.30, while the total debt to equity was 2.45.. In terms of profitability, the gross margin trailing 12 months is 27.30%. The trailing 12-month EBITDA margin is 19.79% while for the period ending May 30, Lamb Weston Holdings Inc.’s operating margin was 16.50%. The firm’s gross profit as reported stood at $1.43 billion against revenue of $5.35 billion.
Earnings Surprise
For the quarterly period ending May 30 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 93.58% to $498.8 million, while revenue of $175.1 million was 64.9% off the previous quarter. Analysts expected LW to announce $1.05 per share in earnings in its latest quarter, but it posted $1.22, representing a 16.20% surprise. EBITDA for the quarter stood at more than $256.5 million. LW stock balance sheet for the quarter ending May 30 shows that total liabilities totaled 5.11 billion, with total debt at $3.62 billion. Shareholders hold equity totaling $145.67 million.
Let’s look briefly at Lamb Weston Holdings Inc. (LW) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 22 August was 37.55% to suggest the stock is trending Neutral, with historical volatility in this time period at 19.66%.
The stock’s 5-day moving average is $94.69, reflecting a +0.29% or $0.28 change from its current price. LW is currently trading -8.31% above its 20-day SMA, -6.14% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -15.27% and SMA200 by+11.72%.
Stochastic %K and %D was 18.52% and 11.55% and the average true range (ATR) pointed at 2.18. The RSI (14) points at 33.64%, while the 14-day stochastic is at 27.90% with the period’s ATR at 2.25. The stock’s 9-day MACD Oscillator is pointing at -0.54 and -2.57 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for Lamb Weston Holdings Inc. (NYSE: LW), Stifel upgraded it to a Buy rating. They previously had a Hold rating on the stock. Analysts offering their rating for LW stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate LW as a “sell,”, while 1 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 2 rates the stock as overweight while 5 have offered a “buy” rating.
What is LW’s price target for the next 12 months?
Analysts have a consensus price target ranging from a low of $112.00 and a high of $135.00, with their median price target at $125.00. Looking at these predictions, the average price target given by analysts is for Lamb Weston Holdings Inc. (LW) stock is $124.57.
