Lamb Weston Holdings Inc (NYSE: LW)’s stock price has gone decline by -2.15 in comparison to its previous close of 81.53, however, the company has experienced a -25.11% decrease in its stock price over the last five trading days. Seeking Alpha reported 2024-04-06 that Lamb Weston Holdings is a leading producer of frozen potato products, with a global presence and efficient operations.
Is It Worth Investing in Lamb Weston Holdings Inc (NYSE: LW) Right Now?
Lamb Weston Holdings Inc (NYSE: LW) has a higher price-to-earnings ratio of 10.66x compared to its average ratio, The 36-month beta value for LW is at 0.78. Analysts have varying views on the stock, with 2 analysts rating it as a “buy,” 3 rating it as “overweight,” 3 as “hold,” and 0 as “sell.”
The public float for LW is 141.43M, and currently, shorts hold a 2.94% of that float. The average trading volume for LW on April 08, 2024 was 1.87M shares.
LW’s Market Performance
LW’s stock has seen a -25.11% decrease for the week, with a -22.12% drop in the past month and a -24.21% fall in the past quarter. The volatility ratio for the week is 5.04%, and the volatility levels for the past 30 days are at 2.86% for Lamb Weston Holdings Inc The simple moving average for the last 20 days is -21.82% for LW’s stock, with a simple moving average of -21.09% for the last 200 days.
Analysts’ Opinion of LW
Many brokerage firms have already submitted their reports for LW stocks, with Exane BNP Paribas repeating the rating for LW by listing it as a “Outperform.” The predicted price for LW in the upcoming period, according to Exane BNP Paribas is $128 based on the research report published on March 11, 2024 of the current year 2024.
Citigroup, on the other hand, stated in their research note that they expect to see LW reach a price target of $132. The rating they have provided for LW stocks is “Buy” according to the report published on February 01st, 2024.
Wells Fargo gave a rating of “Overweight” to LW, setting the target price at $120 in the report published on December 12th of the previous year.
LW Trading at -22.15% from the 50-Day Moving Average
After a stumble in the market that brought LW to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -32.03% of loss for the given period.
Volatility was left at 2.86%, however, over the last 30 days, the volatility rate increased by 5.04%, as shares sank -20.00% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -24.63% lower at present.
During the last 5 trading sessions, LW fell by -25.11%, which changed the moving average for the period of 200-days by -29.59% in comparison to the 20-day moving average, which settled at $101.04. In addition, Lamb Weston Holdings Inc saw -26.19% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at LW starting from JURGENSEN WILLIAM G, who purchase 3,000 shares at the price of $84.35 back on Oct 16 ’23. After this action, JURGENSEN WILLIAM G now owns 162,835 shares of Lamb Weston Holdings Inc, valued at $253,050 using the latest closing price.
Spytek Eryk J, the GEN COUNSEL & CHIEF COMPL OFF of Lamb Weston Holdings Inc, sale 6,319 shares at $103.23 during a trade that took place back on Aug 02 ’23, which means that Spytek Eryk J is holding 1,052 shares at $652,310 based on the most recent closing price.
Stock Fundamentals for LW
Current profitability levels for the company are sitting at:
- 0.16 for the present operating margin
- 0.27 for the gross margin
The net margin for Lamb Weston Holdings Inc stands at 0.17. The total capital return value is set at 0.19. Equity return is now at value 88.53, with 17.75 for asset returns.
Based on Lamb Weston Holdings Inc (LW), the company’s capital structure generated 0.69 points at debt to capital in total, while cash flow to debt ratio is standing at 0.23. The debt to equity ratio resting at 2.2. The interest coverage ratio of the stock is 8.08.
Currently, EBITDA for the company is 1.1 billion with net debt to EBITDA at 2.88. When we switch over and look at the enterprise to sales, we see a ratio of 2.34. The receivables turnover for the company is 8.9for trailing twelve months and the total asset turnover is 0.9. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.19.
Conclusion
In conclusion, Lamb Weston Holdings Inc (LW) has had a bad performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
