Lamb Weston Holdings Inc. (NYSE:LW) shares traded lower over the last trading session, losing -0.44% on 05/19/21. The shares fell to a low of $75.82 before closing at $77.14. Intraday shares traded counted 0.66 million, which was 35.43% higher than its 30-day average trading volume of 1.02M. LW’s previous close was $77.48 while the outstanding shares total 146.50M. The firm has a beta of 0.78, a 12-month trailing P/E ratio of 45.27, and a growth ratio of 4.25. The stock’s Relative Strength Index (RSI) is 42.38, with weekly volatility at 1.98% and ATR at 1.59. The LW stock’s 52-week price range has touched low of $54.03 and a $86.41 high.
Investors have identified the Packaged Foods company Lamb Weston Holdings Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $11.23 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Lamb Weston Holdings Inc. (LW) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For LW, the company has in raw cash 714.3 million on their books with 32.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 1.76 billion total, with 590.2 million as their total liabilities.
LW were able to record 282.7 million as free cash flow during the 07/27/2021 quarter of the year, this saw their quarterly net cash flow reduce by -649.7 million. In cash movements, the company had a total of 374.8 million as operating cash flow.
Potential earnings growth for Lamb Weston Holdings Inc. (LW)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/27/2021 quarter of the year, Lamb Weston Holdings Inc. recorded a total of 895.8 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -4.63% coming in sequential stages and their sales for the 07/27/2021 quarter reducing by -0.03%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 699.1 million trying to sell their products during the last quarter, with the result yielding a gross income of 196.7 million. This allows shareholders to hold on to 146.50M with the recently reported earning now reading 0.45 cents per share. This is a figure that compared to analyst’s prediction for their 07/27/2021 (0.45 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.99 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on LW sounds very interesting.
Is the stock of LW attractive?
In related news, President and CEO, Werner Thomas P. sold 69,500 shares of the company’s stock in a transaction that recorded on Apr 12. The sale was performed at an average price of 78.46, for a total value of 5,453,165. As the sale deal closes, the President and CEO, Werner Thomas P. now sold 69,500 shares of the company’s stock, valued at 5,396,675. Also, SVP, Gen Counsel, Spytek Eryk J sold 6,183 shares of the company’s stock in a deal that was recorded on Jan 13. The shares were price at an average price of 75.00 per share, with a total market value of 463,725. Following this completion of acquisition, the Director, NIBLOCK ROBERT A now holds 2,500 shares of the company’s stock, valued at 149,250. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.
4 out of 8 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Lamb Weston Holdings Inc.. 0 analysts has assigned a Sell rating on the LW stock. The 12-month mean consensus price target for the company’s shares has been set at $86.50.