Lamb Weston Sees Unusually Large Options Volume (NYSE:LW)

Lamb Weston (NYSE:LW) was the recipient of some unusual options trading on Monday. Traders bought 9,763 call options on the company. This represents an increase of 263% compared to the average daily volume of 2,692 call options.

Analyst Ratings Changes

LW has been the topic of a number of recent research reports. BNP Paribas Exane downgraded shares of Lamb Weston from an “outperform” rating to a “neutral” rating in a research note on Monday. Wells Fargo & Company boosted their target price on shares of Lamb Weston from $66.00 to $68.00 and gave the stock an “overweight” rating in a report on Wednesday, October 1st. Deutsche Bank Aktiengesellschaft decreased their target price on shares of Lamb Weston from $61.00 to $49.00 and set a “hold” rating on the stock in a research report on Monday. Cowen reiterated a “hold” rating on shares of Lamb Weston in a research report on Wednesday, October 1st. Finally, Sanford C. Bernstein set a $65.00 price objective on Lamb Weston and gave the stock a “market perform” rating in a research note on Wednesday, October 1st. Three investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, Lamb Weston currently has an average rating of “Hold” and an average target price of $59.40.

Lamb Weston Trading Down 2.3%

LW opened at $42.95 on Tuesday. The stock has a market cap of $5.98 billion, a price-to-earnings ratio of 15.45, a P/E/G ratio of 4.03 and a beta of 0.44. The stock’s 50 day moving average price is $60.09 and its 200-day moving average price is $57.08. Lamb Weston has a one year low of $42.45 and a one year high of $68.61. The company has a debt-to-equity ratio of 2.08, a quick ratio of 0.64 and a current ratio of 1.43.

Lamb Weston (NYSE:LW) last issued its quarterly earnings results on Friday, December 19th. The specialty retailer reported $0.69 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.68 by $0.01. Lamb Weston had a return on equity of 27.71% and a net margin of 6.06%.The firm had revenue of $1.62 billion during the quarter, compared to analyst estimates of $1.59 billion. During the same period last year, the company earned $0.66 EPS. Lamb Weston’s quarterly revenue was up 1.1% compared to the same quarter last year. On average, equities analysts forecast that Lamb Weston will post 3.1 EPS for the current year.

Lamb Weston Increases Dividend

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

Key Lamb Weston News

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

• Positive Sentiment: Unusually large bullish options activity — investors bought roughly 9,763 call options on Monday (≈263% above the average daily call volume), signaling speculative bullish interest that can provide short‑term buying support.
• Neutral Sentiment: Bank of America cut its price target from $66 to $53 and set a “neutral” rating; the $53 target still implies upside vs. the current level, leaving room for recovery if guidance/margins stabilize. Benzinga coverage
• Neutral Sentiment: Analysts and outlets are highlighting LW’s S&P 500 exposure and how international revenues are evolving — coverage that may keep the name in focus for index/ETF flows and international‑revenue re‑ratings. Lamb Weston S&P exposure
• Neutral Sentiment: Several market writeups are positioning Lamb Weston as “on sale” amid the pullback, which can attract value‑oriented buyers if fundamentals improve. Why LW shares are on sale
• Negative Sentiment: Earnings aftermath: coverage says LW beat the quarter but issued weak guidance and flagged margin pressures, prompting a valuation reassessment — a key driver of the downward move as investors focus on near‑term profitability. Valuation reassessment after earnings
• Negative Sentiment: Company warnings of profit pressure from increased discounting and higher input costs have been highlighted by multiple outlets, reinforcing concerns about compressing margins and near‑term earnings risk. Profit pressure warning
• Negative Sentiment: Press reports and analyst commentary say price discounts have materially pressured profits, driving a sharp selloff in recent sessions. Barron’s: discounts pressured profits
• Negative Sentiment: Analyst tone has cooled: BNP Paribas Exane downgraded LW from “outperform” to “neutral,” adding to bearish sentiment and reducing buy‑side conviction (no link provided for the downgrade item).
• Negative Sentiment: Technical/market signal — the stock recently hit a new 52‑week low in mid‑Dec amid thining support, a bearish indicator that can trigger more selling from momentum and stop‑loss orders. 52-week low coverage

Hedge Funds Weigh In On Lamb Weston

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

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.