Fintel reports that on August 4, 2023, Stifel upgraded their outlook for Lamb Weston Holdings (NYSE:LW) from Hold to Buy.

Analyst Price Forecast Suggests 24.63% Upside

As of August 2, 2023, the average one-year price target for Lamb Weston Holdings is 127.06. The forecasts range from a low of 113.12 to a high of $141.75. The average price target represents an increase of 24.63% from its latest reported closing price of 101.96.

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The projected annual revenue for Lamb Weston Holdings is 5,407MM, an increase of 1.05%. The projected annual non-GAAP EPS is 4.07.

Lamb Weston Holdings Declares $0.28 Dividend

On July 19, 2023 the company declared a regular quarterly dividend of $0.28 per share ($1.12 annualized). Shareholders of record as of August 4, 2023 will receive the payment on September 1, 2023. Previously, the company paid $0.28 per share.

At the current share price of $101.96 / share, the stock’s dividend yield is 1.10%.

Looking back five years and taking a sample every week, the average dividend yield has been 1.25%, the lowest has been 0.93%, and the highest has been 1.96%. The standard deviation of yields is 0.22 (n=235).

The current dividend yield is 0.71 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.16. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.22%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 1470 funds or institutions reporting positions in Lamb Weston Holdings. This is an increase of 110 owner(s) or 8.09% in the last quarter. Average portfolio weight of all funds dedicated to LW is 0.36%, an increase of 7.94%. Total shares owned by institutions decreased in the last three months by 1.22% to 142,468K shares. The put/call ratio of LW is 0.24, indicating a bullish outlook.

What are Other Shareholders Doing?

APG Asset Management N.V. holds 6,383K shares representing 4.38% ownership of the company. In it’s prior filing, the firm reported owning 6,985K shares, representing a decrease of 9.42%. The firm increased its portfolio allocation in LW by 9.80% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 4,446K shares representing 3.05% ownership of the company. In it’s prior filing, the firm reported owning 4,364K shares, representing an increase of 1.85%. The firm increased its portfolio allocation in LW by 10.04% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 3,357K shares representing 2.30% ownership of the company. In it’s prior filing, the firm reported owning 3,325K shares, representing an increase of 0.96%. The firm increased its portfolio allocation in LW by 9.52% over the last quarter.

Stockbridge Partners holds 3,163K shares representing 2.17% ownership of the company.

Geode Capital Management holds 3,044K shares representing 2.09% ownership of the company. In it’s prior filing, the firm reported owning 2,974K shares, representing an increase of 2.28%. The firm increased its portfolio allocation in LW by 10.78% over the last quarter.

Lamb Weston Holdings Background Information
(This description is provided by the company.)

Lamb Weston is a leading supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers around the world. For 70 years, Lamb Weston has led the industry in innovation, introducing inventive products that simplify back-of-house management for its customers and make things more delicious for their customers. From the fields where Lamb Weston potatoes are grown to proactive customer partnerships, Lamb Weston always strives for more and never settles. Because, when it looks at a potato, it sees possibilities.

This article originally appeared on Fintel

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