Analysts Recommend “Hold” for Lamb Weston Stock Amid Market Updates

Lamb Weston Holdings, Inc. (NYSE:LW) has received an average recommendation of “Hold” from thirteen analysts monitoring the company, according to MarketBeat.com. Among these analysts, one has issued a sell recommendation, nine have opted for a hold rating, and three suggest a buy recommendation. The average price target for Lamb Weston is currently set at **$53.00** for the next year.

Analysts have provided updated ratings and price targets as part of their research on Lamb Weston. On **December 29, 2023**, Sanford C. Bernstein reiterated a “market perform” rating, assigning a target price of **$46.00**. Meanwhile, on **December 23, 2023**, Wells Fargo & Company lowered its price target from **$68.00** to **$54.00**, while maintaining an “overweight” rating. Similarly, Bank of America revised its target from **$66.00** to **$53.00**, providing a “neutral” stance on the stock. Barclays also reduced its target price from **$68.00** to **$55.00**, keeping an “overweight” rating. In contrast, Jefferies Financial Group raised its price target from **$67.00** to **$70.00**, issuing a “buy” rating on **December 12, 2023**.

Investors are taking note of recent movements among institutional investors regarding Lamb Weston. For instance, American National Bank & Trust acquired a new stake valued at approximately **$25,000** in the second quarter. AlphaQuest LLC significantly increased its stake by **115.5%** during the third quarter, now holding **446** shares valued at around **$26,000** after purchasing an additional **239** shares. ST Germain D J Co. Inc. raised its position by **64.2%** in the second quarter, now owning **537** shares worth **$28,000** after acquiring **210** more shares. Quent Capital LLC and Motco also entered new positions in the third quarter, valued at about **$29,000** and **$30,000**, respectively. Currently, institutional investors and hedge funds hold **89.56%** of Lamb Weston’s stock.

Lamb Weston Stock Performance and Financial Metrics

As of the latest trading session on **December 29, 2023**, Lamb Weston shares opened at **$44.03**. The company has a debt-to-equity ratio of **2.08**, a quick ratio of **0.64**, and a current ratio of **1.43**. Over the past year, Lamb Weston has seen a low of **$39.79** and a high of **$67.07**. The 50-day moving average price stands at **$50.52**, while the two-hundred-day moving average price is **$55.18**. The market capitalization of Lamb Weston is approximately **$6.11 billion**, with a price-to-earnings (P/E) ratio of **15.84** and a price-to-earnings-growth (PEG) ratio of **6.78**.

In its latest quarterly earnings report released on **December 19, 2023**, Lamb Weston announced earnings of **$0.69** per share (EPS), exceeding the consensus estimate of **$0.68** by **$0.01**. The company reported revenue of **$1.62 billion**, surpassing the expected **$1.59 billion**. With a net margin of **6.06%** and a return on equity of **27.71%**, Lamb Weston’s revenue has increased by **1.1%** compared to the same quarter last year, where it earned **$0.66** EPS.

Dividend Announcement and Company Overview

In addition to the earnings report, Lamb Weston recently declared a quarterly dividend of **$0.38**, set to be paid on **February 27, 2024**, to investors of record as of **January 30, 2024**. This marks an increase from the previous quarterly dividend of **$0.37**, resulting in an annualized dividend of **$1.52** and a yield of **3.5%**. The ex-dividend date is also set for **January 30, 2024**, and the company’s payout ratio currently stands at **53.24%**.

Lamb Weston, headquartered in **Eagle, Idaho**, is a prominent global processor and supplier of frozen potato products. Established in **1950**, the company has evolved from a regional processor to one of the largest producers in the industry. Its product offerings include a wide range of potato items such as French fries, potato wedges, and hash browns, catering to the foodservice and retail grocery sectors. Lamb Weston serves various clients, including quick-service restaurants and grocery chains, providing customized products to meet the ever-changing demands of its customers.