Lamb Weston (NYSE:LW) Receives Consensus Rating of “Hold” from Analysts

Shares of Lamb Weston (NYSE:LW) have received a consensus recommendation of “Hold” from the fourteen ratings firms that are currently covering the firm, MarketBeat Ratings reports. Eleven analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $56.70.

LW has been the subject of several recent research reports. BNP Paribas set a $48.00 price target on Lamb Weston in a report on Monday. Jefferies Financial Group lifted their price objective on Lamb Weston from $67.00 to $70.00 and gave the company a “buy” rating in a research report on Friday, December 12th. Stifel Nicolaus reduced their target price on shares of Lamb Weston from $63.00 to $50.00 and set a “hold” rating for the company in a report on Monday. Barclays decreased their target price on shares of Lamb Weston from $68.00 to $55.00 and set an “overweight” rating on the stock in a research note on Tuesday. Finally, Sanford C. Bernstein set a $65.00 price target on shares of Lamb Weston and gave the stock a “market perform” rating in a research report on Wednesday, October 1st.

Lamb Weston Stock Down 2.6%

Shares of LW stock opened at $41.69 on Wednesday. The company has a current ratio of 1.43, a quick ratio of 0.64 and a debt-to-equity ratio of 2.08. Lamb Weston has a 12 month low of $41.41 and a 12 month high of $68.61. The stock has a market cap of $5.79 billion, a P/E ratio of 15.00, a P/E/G ratio of 4.03 and a beta of 0.44. The company has a 50 day simple moving average of $59.64 and a two-hundred day simple moving average of $56.98.

Lamb Weston (NYSE:LW) last issued its quarterly earnings data on Friday, December 19th. The specialty retailer reported $0.69 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.68 by $0.01. The firm had revenue of $1.62 billion during the quarter, compared to the consensus estimate of $1.59 billion. Lamb Weston had a net margin of 6.06% and a return on equity of 27.71%. The company’s revenue for the quarter was up 1.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.66 EPS. On average, research analysts expect 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. Shareholders of record on Friday, January 30th will be issued a dividend of $0.38 per share. This is a boost from Lamb Weston’s previous quarterly dividend of $0.37. This represents a $1.52 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date of this dividend is Friday, January 30th. Lamb Weston’s payout ratio is 53.24%.

Hedge Funds Weigh In On Lamb Weston

A number of hedge funds have recently made changes to their positions in LW. AlphaQuest LLC grew its position in shares of Lamb Weston by 115.5% during the third quarter. AlphaQuest LLC now owns 446 shares of the specialty retailer’s stock worth $26,000 after purchasing an additional 239 shares in the last quarter. American National Bank & Trust bought a new position in Lamb Weston in the 2nd quarter worth approximately $25,000. Quent Capital LLC purchased a new stake in Lamb Weston during the 3rd quarter valued at approximately $29,000. Motco bought a new stake in shares of Lamb Weston during the third quarter valued at approximately $30,000. Finally, ST Germain D J Co. Inc. raised its position in shares of Lamb Weston by 64.2% during the second quarter. ST Germain D J Co. Inc. now owns 537 shares of the specialty retailer’s stock valued at $28,000 after buying an additional 210 shares during the last quarter. Institutional investors own 89.56% of the company’s stock.

Trending Headlines about Lamb Weston

Here are the key news stories impacting Lamb Weston this week:

• Positive Sentiment: Institutional support remains: Wells Fargo kept an “overweight” rating on LW despite cutting its price target, signaling conviction in the company’s longer‑term story. Wells Fargo maintains Lamb Weston Holdings (LW) overweight recommendation
• Positive Sentiment: Unusual options activity: large call buying (9,763 calls, +263% vs. average) suggests some investors are speculating on a rebound or hedging exposure at current levels (can be a short‑term bullish signal).
• Neutral Sentiment: Mixed analyst stance — several firms are staying cautious with “hold”/”neutral” ratings (Stifel, BNP Paribas Exane, Globe & Mail summary), indicating no broad restoration of buy-side momentum. Analysts Are Neutral on Top Consumer Goods Stocks
• Neutral Sentiment: Bank of America and Wells Fargo cut price targets (to $53 and $54 respectively) but still imply mid‑20%+ upside from current levels — this keeps upside on the table while signaling reduced near‑term expectations. Benzinga
• Negative Sentiment: Earnings / guidance mix: management’s post‑quarter commentary prompted a reassessment of valuation — the company beat near‑term EPS but issued weaker guidance and highlighted margin pressures, which is pressuring the multiple. Lamb Weston (LW): Reassessing Valuation After Earnings Beat, Weak Guidance and Margin Pressures
• Negative Sentiment: Downgrades & technical weakness: BNP Paribas Exane moved LW from outperform to neutral and several writeups highlight a prolonged bearish trend and sustained underperformance versus peers, amplifying selling pressure. Finviz (BNP Paribas downgrade)
• Negative Sentiment: Market narrative: analyst/opinion pieces point to a structural lack of momentum since mid‑2023; until guidance or margins stabilize, sentiment may remain negative. What’s Driving Lamb Weston’s Sustained Underperformance

About Lamb Weston

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.