Lamb Weston (LW) to Issue Quarterly Dividend of $0.38 on December 4th

Lamb Weston (NYSE:LW) announced a quarterly dividend on Monday, October 5th. Investors of record on Friday, November 6th will be paid a dividend of $0.38 per share by the specialty retailer on Friday, December 4th. This represents a $1.52 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Friday, November 6th.

Lamb Weston has raised its dividend payment by an average of 0.1% annually over the last three years and has increased its dividend every year for the last 7 years. Lamb Weston has a dividend payout ratio of 39.8% meaning its dividend is sufficiently covered by earnings. Analysts expect Lamb Weston to earn $3.54 per share next year, which means the company should continue to be able to cover its $1.52 annual dividend with an expected future payout ratio of 42.9%.

Lamb Weston Stock Performance

Shares of LW opened at $55.02 on Wednesday. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.77 and a current ratio of 1.45. The stock has a market capitalization of $7.58 billion, a P/E ratio of 30.07, a P/E/G ratio of 2.05 and a beta of 0.49. The company’s fifty day moving average is $49.96 and its two-hundred day moving average is $46.72. Lamb Weston has a 1 year low of $37.62 and a 1 year high of $63.07.

Lamb Weston (NYSE:LW) last released its earnings results on Tuesday, October 6th. The specialty retailer reported $0.75 EPS for the quarter, topping the consensus estimate of $0.59 by $0.16. The company had revenue of $1.67 billion during the quarter, compared to analysts’ expectations of $1.65 billion. Lamb Weston had a net margin of 3.85% and a return on equity of 23.27%. The business’s revenue was up .7% on a year-over-year basis. During the same quarter last year, the business earned $0.74 EPS. Lamb Weston has set its FY 2027 guidance at 3.050-3.350 EPS. On average, sell-side analysts predict that Lamb Weston will post 3.24 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on LW. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $53.00 target price on shares of Lamb Weston in a research note on Wednesday, October 7th. Stephens lifted their price target on Lamb Weston from $50.00 to $55.00 and gave the company an “equal weight” rating in a research note on Thursday, October 8th. Barclays upped their price objective on Lamb Weston from $56.00 to $58.00 and gave the stock an “overweight” rating in a report on Thursday, October 8th. TD Cowen increased their price target on shares of Lamb Weston from $40.00 to $52.00 and gave the company a “hold” rating in a report on Tuesday, July 28th. Finally, Zacks Research raised Lamb Weston from a “hold” rating to a “strong-buy” rating in a report on Friday, October 9th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, Lamb Weston currently has a consensus rating of “Hold” and an average target price of $53.82.

About Lamb Weston

Lamb Weston Holdings, Inc (NYSE:LW) is a global producer and distributor of frozen potato products. The company supplies French fries, potato wedges, hash browns, tater tots, mashed potatoes, sweet potato products and other potato-based offerings to foodservice operators, restaurants, retailers and institutional customers.

Lamb Weston serves customers in North America and international markets through a portfolio of branded, licensed and customer-specific products. Its offerings are used by restaurants, schools, hospitals, hotels and other foodservice establishments, as well as sold through retail and grocery channels.