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


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Lamb Weston Holdings, Inc. (NYSE:LW) was the target of some unusual options trading activity on Wednesday. Stock investors purchased 797 put options on the company. This is an increase of 1,072% compared to the average volume of 68 put options.

Separately, Bank of America upgraded Lamb Weston from a “neutral” rating to a “buy” rating and set a $100.00 price objective for the company in a research note on Monday. One analyst has rated the stock with a hold rating and three have issued a buy rating to the company’s stock. Lamb Weston has a consensus rating of “Buy” and a consensus target price of $81.25.

LW opened at $77.99 on Thursday. The company has a quick ratio of 1.88, a current ratio of 2.91 and a debt-to-equity ratio of 6.65. Lamb Weston has a 52 week low of $51.72 and a 52 week high of $86.41. The stock’s fifty day moving average is $80.38 and its two-hundred day moving average is $75.25. The company has a market capitalization of $11.41 billion, a P/E ratio of 38.61, a PEG ratio of 3.31 and a beta of 0.78.

Lamb Weston (NYSE:LW) last released its earnings results on Wednesday, April 7th. The specialty retailer reported $0.45 earnings per share for the quarter, missing the consensus estimate of $0.51 by ($0.06). The company had revenue of $895.80 million for the quarter, compared to analysts’ expectations of $819.94 million. Lamb Weston had a return on equity of 95.26% and a net margin of 8.33%. The firm’s revenue for the quarter was down 4.4% on a year-over-year basis. During the same period in the prior year, the firm posted $0.77 EPS. Equities analysts anticipate that Lamb Weston will post 2.34 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Friday, June 4th. Investors of record on Friday, May 7th will be issued a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 1.21%. The ex-dividend date is Thursday, May 6th. Lamb Weston’s payout ratio is presently 37.60%.

In other Lamb Weston news, CEO Thomas P. Werner sold 69,500 shares of Lamb Weston stock in a transaction dated Friday, January 15th. The shares were sold at an average price of $77.65, for a total value of $5,396,675.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Eryk J. Spytek sold 6,183 shares of the business’s stock in a transaction on Wednesday, January 13th. The stock was sold at an average price of $75.00, for a total value of $463,725.00. The disclosure for this sale can be found here. 0.81% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Liberty One Investment Management LLC purchased a new stake in shares of Lamb Weston during the first quarter worth approximately $1,287,000. Legacy Wealth Asset Management LLC acquired a new position in Lamb Weston during the fourth quarter worth about $231,000. Amundi Pioneer Asset Management Inc. grew its stake in Lamb Weston by 15.0% during the 4th quarter. Amundi Pioneer Asset Management Inc. now owns 768,928 shares of the specialty retailer’s stock valued at $60,546,000 after acquiring an additional 100,366 shares in the last quarter. Teachers Retirement System of The State of Kentucky raised its holdings in Lamb Weston by 6.0% in the 4th quarter. Teachers Retirement System of The State of Kentucky now owns 86,124 shares of the specialty retailer’s stock valued at $6,781,000 after acquiring an additional 4,903 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in shares of Lamb Weston by 13.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 750,191 shares of the specialty retailer’s stock worth $59,063,000 after purchasing an additional 86,665 shares during the last quarter. Institutional investors and hedge funds own 86.38% of the company’s stock.

About Lamb Weston

Lamb Weston Holdings, Inc produces, distributes, and markets value-added frozen potato products worldwide. It operates through four segments: Global, Foodservice, Retail, and Other. The company offers frozen potatoes, sweet potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as various customer labels.

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