Lamb Weston (NYSE:LW) Sees Large Increase in Short Interest

Lamb Weston (NYSE:LW) was the recipient of a large increase in short interest in December. As of December 31st, there was short interest totaling 5,855,978 shares, an increase of 38.2% from the December 15th total of 4,237,796 shares. Based on an average daily volume of 5,147,379 shares, the short-interest ratio is presently 1.1 days. Approximately 4.2% of the company’s shares are sold short. Approximately 4.2% of the company’s shares are sold short. Based on an average daily volume of 5,147,379 shares, the short-interest ratio is presently 1.1 days.

Hedge Funds Weigh In On Lamb Weston

Several large investors have recently made changes to their positions in LW. Norges Bank bought a new position in Lamb Weston in the 2nd quarter worth approximately $119,413,000. Ion Asset Management Ltd. bought a new position in Lamb Weston during the second quarter worth $84,379,000. SG Americas Securities LLC increased its position in Lamb Weston by 2,682.3% during the fourth quarter. SG Americas Securities LLC now owns 801,708 shares of the specialty retailer’s stock worth $33,584,000 after acquiring an additional 772,893 shares during the period. Capital Research Global Investors boosted its holdings in Lamb Weston by 46.3% in the 3rd quarter. Capital Research Global Investors now owns 2,150,000 shares of the specialty retailer’s stock valued at $124,872,000 after purchasing an additional 680,000 shares during the period. Finally, Arrowstreet Capital Limited Partnership grew its position in Lamb Weston by 989.7% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 704,239 shares of the specialty retailer’s stock worth $36,515,000 after purchasing an additional 639,615 shares during the last quarter. Institutional investors and hedge funds own 89.56% of the company’s stock.

Lamb Weston Stock Performance

Lamb Weston stock traded down $0.61 during trading hours on Friday, reaching $43.32. 2,243,892 shares of the company were exchanged, compared to its average volume of 4,062,336. Lamb Weston has a 12 month low of $39.79 and a 12 month high of $67.07. The company has a current ratio of 1.43, a quick ratio of 0.64 and a debt-to-equity ratio of 2.08. The stock has a 50-day moving average of $51.75 and a 200 day moving average of $55.43. The firm has a market cap of $6.02 billion, a price-to-earnings ratio of 15.58, a PEG ratio of 6.72 and a beta of 0.45.

Lamb Weston (NYSE:LW) last issued its quarterly earnings data on Friday, December 19th. The specialty retailer reported $0.69 earnings per share for the quarter, topping analysts’ consensus estimates of $0.68 by $0.01. Lamb Weston had a net margin of 6.06% and a return on equity of 27.71%. The business had revenue of $1.62 billion during the quarter, compared to analysts’ expectations of $1.59 billion. During the same period in the previous year, the company earned $0.66 earnings per share. Lamb Weston’s revenue for the quarter was up 1.1% on a year-over-year basis. As a group, research analysts anticipate that Lamb Weston will post 3.1 earnings per share for the current year.

Lamb Weston Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Friday, January 30th will be given a $0.38 dividend. This is an increase from Lamb Weston’s previous quarterly dividend of $0.37. This represents a $1.52 annualized dividend and a dividend yield of 3.5%. The ex-dividend date of this dividend is Friday, January 30th. Lamb Weston’s dividend payout ratio (DPR) is 53.24%.

Analyst Upgrades and Downgrades

LW has been the topic of a number of research analyst reports. Cfra Research upgraded Lamb Weston to a “hold” rating in a report on Thursday, October 2nd. Zacks Research lowered shares of Lamb Weston from a “hold” rating to a “strong sell” rating in a research report on Monday, January 12th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Lamb Weston in a research report on Monday, December 29th. Stifel Nicolaus decreased their target price on shares of Lamb Weston from $63.00 to $50.00 and set a “hold” rating for the company in a research note on Monday, December 22nd. Finally, BNP Paribas set a $48.00 price target on shares of Lamb Weston in a report on Monday, December 22nd. Three equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $54.18.

Lamb Weston Company Profile

Lamb Weston, traded on the NYSE under the symbol LW, is a leading global processor and supplier of frozen potato products. The company’s portfolio includes a variety of potato-based items such as French fries, potato wedges, hash browns and specialty cuts tailored to the foodservice and retail grocery channels. Lamb Weston serves quick-service restaurants, full-service operators, grocery chains and food distributors, offering customized product formats, packaging solutions and seasoning options to meet evolving customer demands.

Founded in 1950 and headquartered in Eagle, Idaho, Lamb Weston has grown from a regional processor into one of the world’s largest producers of frozen potato products.