Insider Activity Report: Lamb Westin (LW)

William Jurgensen, a director at Lamb Westin (LW), recently bought 3,000 shares. The buy increased his stake by 2 percent, and came to a total cost just over $253,000.

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  • This is the first insider buy at the company in the past two years. Otherwise, company officers have been periodic sellers of shares, with the last sale occurring in August when shares traded nearly $20 higher from the current price.

    Overall, company insiders own 0.4 percent of shares.

    The frozen potato producer is up 3 percent over the past year, but has given up substantial gains since the summer amid the rise of a new weight loss drug hitting the market.

    That could undo Lamb Westin’s gains of the past 12 months, which saw revenues soar by 48 percent.

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  • Even with the potential for an operational slowdown, Lamb Westin trades at 17 times forward earnings, down from an average closer to 30 times earnings in the last year.

    Action to take: Shares may be getting oversold in the short term and could move higher. The rise of a new weight loss drug will have some impact on demand, but likely not as much as has been priced into shares now.

    Lamb Westin also yields 1.3 percent at current prices.

    For traders, the January 2024 $95 calls, last going for about $2.75, could see mid-to-high double-digit gains on a rebound in shares.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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