First National Trust Co has significantly reduced its investment in Lamb Weston (NYSE: LW), decreasing its stock holdings by 79.3% during the third quarter of 2023. This information was revealed in the fund’s recent Form 13F filing with the Securities and Exchange Commission (SEC). After selling 25,268 shares in the quarter, First National Trust Co now owns just 6,577 shares, valued at approximately $382,000.
The reduction in First National Trust Co’s stake comes amid a broader trend among hedge funds adjusting their positions in Lamb Weston. For instance, the Royal Bank of Canada increased its holdings by 29.4% during the first quarter, acquiring an additional 42,039 shares to reach a total of 185,038 shares worth about $9.86 million. Similarly, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake by 3.5%, acquiring 549 shares to hold a total of 16,355 shares valued at $872,000.
In the second quarter, IFP Advisors Inc boosted its holdings by 14.5%, now owning 2,138 shares worth $111,000 after purchasing an additional 271 shares. Vanguard Personalized Indexing Management LLC increased its position by 63.6%, acquiring 5,650 shares to bring its total to 14,539 shares valued at $757,000. CWM LLC also lifted its stake by 3.1%, owning 33,895 shares valued at approximately $1.76 million. Currently, institutional investors and hedge funds collectively hold 89.56% of Lamb Weston’s stock.
In related news, insider Jan Eli B. Craps purchased 50,000 shares on February 6, 2024, at an average price of $48.65 per share, totaling approximately $2.43 million. Following this transaction, Craps now owns 300,000 shares, valued at about $14.6 million, marking a 20% increase in ownership. This purchase was disclosed in a filing with the SEC.
Market Performance and Upcoming Dividends
As of Thursday, shares of Lamb Weston opened at $50.29. The stock has demonstrated volatility over the past year, recording a low of $39.79 and a high of $67.07. With a market capitalization of $6.98 billion, Lamb Weston has a price-to-earnings (P/E) ratio of 18.09, a PEG ratio of 7.55, and a beta of 0.45. Financial indicators show a current ratio of 1.43, a quick ratio of 0.64, and a debt-to-equity ratio of 2.08. The company’s 50-day moving average stands at $47.43, with a 200-day average of $54.70.
Lamb Weston recently released its quarterly earnings data, reporting earnings per share (EPS) of $0.69 for the quarter ending December 19, 2023, surpassing analysts’ estimates of $0.68 by $0.01. The company achieved a net margin of 6.06% and a return on equity of 27.71%. Revenue for the quarter was approximately $1.62 billion, exceeding expectations of $1.59 billion, reflecting a year-over-year increase of 1.1%. Analysts forecast an EPS of 3.1 for the current fiscal year.
Investors can also look forward to a quarterly dividend, which is set to be paid on February 27, 2024. Shareholders of record as of January 30, 2024, will receive a dividend of $0.38 per share, an increase from the previous quarter’s $0.37. This increase represents an annualized dividend of $1.52 and a yield of 3.0%. Lamb Weston’s dividend payout ratio currently stands at 54.68%.
Company Overview
Founded in 1950 and headquartered in Eagle, Idaho, Lamb Weston is a leading global processor and supplier of frozen potato products. The company produces a variety of items, including French fries, potato wedges, and specialty cuts tailored for the foodservice and retail grocery markets. Lamb Weston serves a diverse clientele, including quick-service restaurants, full-service operators, grocery chains, and food distributors, providing customized product formats and packaging solutions to meet evolving customer demands.
As Lamb Weston continues to navigate market dynamics, its recent financial performance and changes in institutional holdings reflect broader trends in the investment landscape.
