Insider Trading Report: Lamb Weston Holdings (LW)

Robert Niblock, a director at Lamb Weston Holdings (LW), recently bought 2,500 shares. The buy increased his stake by 27.5 percent, and came to a total price of $141,000.

  • Special: This Company’s Share Price has Increased 1650% Since 2016
  • The buy came just a few days after another director bought 5,000 shares, increasing his holdings by 32 percent and at a cost of just under $279,000. The buys come a few months after the company President and CEO made the last insider sale.

    Overall, insiders own just over 1 percent of the company. Shares of the manufacturer of packaged goods, mostly in frozen potato products, are down nearly 20 percent over the past year.

    However, revenue is up double-digits over the past year, and the company trades at an attractive 19 times forward earnings. The company can likely pass on higher costs to customers as well, and could make an attractive way to hedge against rising food costs.

    Action to take: Investors may like shares here, as they seem to have flatlined in recent sessions. The company currently yields 1.6 percent, but dividend growth has been lacking.

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  • Traders may like the April $65 calls. Last carrying a bid/ask spread around $2.00, the option could deliver on continued inflationary numbers, particularly in food prices in the coming months.

     

    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.