The stock of Lamb Weston Holdings Inc. (NYSE:LW) increased by $0.64 on Friday to finish at $96.35, up 0.67 percent. The last five days have seen an average of 1,353,960 shares of common stock traded. 28 times new highs were reached in the current year, with a gain of $6.99. The average number of shares traded over the last 20 days was 1,532,530, while the average volume over the last 50 days totaled 1,509,730.
LW stock dropped -5.72% since last month. On 08/18/23, the company’s shares reached a one-month low of $93.00. The stock touched a high of $117.38 on 07/25/23, after rallying from a low of $74.91 in 52 weeks. The price of LW stock has risen by 7.82% or $6.99 this year, reaching a new high 28 times. Still, the stock price is down -17.92% 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 26 days ago on Aug 02. On Aug 02, GEN COUNSEL & CHIEF COMPL OFF Spytek Eryk J sold 6,319 shares at $103.23 each. This transaction resulted in the insider making $652,310. On May 19, Miller Sharon L. sold 4,350 shares at a price of US$115.00. After the transaction, the insider now owns 49,859 shares. VP AND CONTROLLER Jones Gregory W had earlier sold 1,000 shares on Jan 12 for $97.49 a share. The transaction was completed for $97,493.
Valuation Metrics
Lamb Weston Holdings Inc. (LW) has a trailing price-to-earnings (P/E) ratio of 13.91. Beta for the stock is 0.55. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 2.61, the price-to-book (PB) ratio of 9.96, and the price-to-cash flow ratio of 542.97.
Company paid $0.28 per share in dividends, remained unchanged from $0.28 last year. A $0.0350 dividend increase was reported on Wednesday December 14 2022.
Financial Health
For the three months ended May 30, Lamb Weston Holdings Inc.’s quick ratio was 0.90, while its current ratio was 1.60, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending May 30 is 2.30, and the total debt to equity ratio is 2.45. As far as profitability goes, gross margin for the trailing twelve months is 27.30% percent. Lamb Weston Holdings Inc.’s EBITDA margin for the year ended May 30 was 19.79%, whereas its operating margin stood at 16.50% for the same period. Based on annual data, it had gross profit of $1.43 billion and revenue of $5.35 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. LW’s return on assets (ROA) during the last 12 months has been 19.60%. There was a 13.50% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 125.80%.
Earnings Surprise
According to Lamb Weston Holdings Inc.’s quarterly financial report for the quarter that ended May 30. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.69 billion, while revenues rose by 31.97% to $1.25 billion. It was predicted that Lamb Weston Holdings Inc.’s quarterly earnings would be $1.22, but it ended up being $1.05, beating the consensus by 16.20%. EBITDA was $256.5 million for the quarter. At the end of Lamb Weston Holdings Inc.’s most recent quarter ended May 30, its liabilities totaled 5.11 billion, while its total debt was $3.62 billion. Equity owned by shareholders amounts to $145.67 million.
Technical Picture
Here’s a quick look at Lamb Weston Holdings Inc.’s (LW) price momentum from a technical perspective. As of 25 August, the RSI 9-day stood at 40.51%, suggesting the stock is Neutral, with a 19.12% historical volatility rate.
The stochastic %K and %D were 29.79% and 27.30% respectively, while the average true range (ATR) was 1.93. Based on the 14-day stochastic reading of 32.70%, the RSI (14) reading is 36.00%. On the 9-day MACD Oscillator, the stock is at 0.89, and the 14-day reading is at -0.18.
Analyst Ratings
In its most recent analyst report, Stifel raised its rating on Lamb Weston Holdings Inc. (NYSE: LW) to a Buy. Prior to this, analysts firm rated the stock as a Hold. Analysts have assigned Lamb Weston Holdings Inc. (LW) an Overweight rating. LW is a stock that is recommended for selling by 0 brokerage firms, while 1 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 2 rates it overweight and 5 others recommend it as a buy.
What is LW’s price target for the next 12 months?
The current consensus forecast for the stock is between $112.00 and $135.00, with a median target price of $125.00. In analyzing these forecasts, the average price target given by analysts for Lamb Weston Holdings Inc. (LW) is $124.57.
