LWAY stock: buy or sell?

LWAY stock price: $2.45 0.00% At close on September 20th, 2019

Updated on:
September 20th, 2019

0

After sliding for 4 sessions, Friday Lifeway Foods stayed constant a neutral 0.00%, closing at $2.45. On Tuesday LWAY collapsed a bloodcurdling -7.42%. Last session broke a streak of 4 red sessions.

Lifeway Foods, Inc. manufactures and sells probiotic, cultured, and functional dairy health food products in the United States and internationally.

Should I buy LWAY stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. That's why is so important to define your own trading strategy that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Lifeway Foods stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean LWAY will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Lifeway Foods stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't detect any rating for LWAY stock for the last month.

LWAY stock analysis

Daily outlook

After sliding for 4 sessions, Friday Lifeway Foods stayed constant a neutral 0.00%, closing at $2.45.

After sliding for 4 days, Friday Lifeway Foods stayed steady a neutral 0.00%, closing at $2.45. Since price and SMA200d lines crossed down on Tuesday, LWAY fell $-0.30 per share (-10.91%). Since SMA100d and SMA200d crossed up on July, LWAY price slid a -28.78%. From a daily outlook perspective, LWAY is drawing an uptrend of rising tops and rising bottoms. Since its last top on September/10 at $3.09, price slid and bounced up back from $2.70. Breaking down under $2.70 would cancel the current uptrend and it might slide further to test lower supports. Note that $3.09 might act as a resistance line. Trading the long side, we should wait to a new breakout over $3.09 to find the next buy point.

LWAY stock chart (daily)

Weekly outlook

Shares of Lifeway Foods collapsed a bloodcurdling -12.19% this week. Late August LWAY boosted an outstanding 11.30% in just one week.

This week, Lifeway Foods stock undercut the significant level of the 40-weeks moving average. Trading stocks that are below the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support. Since SMA20w and SMA40w crossed up by mid July, LWAY price slid a -21.97%.

LWAY stock chart (weekly)

LWAY stock price history

LWAY IPO was on January 4th, 1989 at $0.49 per share1. Since then, LWAY stock surged a 400.00%, with an average of 13.30% per year. If you had invested right after LWAY's IPO a $1,000 in LWAY stock in 1989, it would worth $4,000.00 today.

1: Adjusted price after possible price splits or reverse-splits.

LWAY stock historical price chart

LWAY stock reached 52-week highs on June at $4.75, and all-time highs 2015-03-30 with a price of 22.38.

LWAY stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' LWAY stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we have not detected any price prediction for Lifeway Foods stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

After presenting its last earnings report on March, Lifeway Foods . As soon as we get its actual EPS from the earnings report, we will extend this report.
LWAY earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.01n/a
2017-Q2-n/a0.06n/a
2017-Q3-n/a0.02n/a
2017-Q42018-03-30n/a-0.11n/a
2018-Q12018-05-15-0.07n/an/a
2018-Q22018-08-17n/a0.01n/a
2018-Q32018-11-14n/a-0.03n/a
2018-Q42019-03-29n/an/an/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw a frightening loss of -13.07% to $103.35 million USD. When comparing 2018 vs 2017, slightly better, profit margin (that is, the net income divided by revenues) decreased a -2.69% to -2.99%.

LWAY annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$98 M-$4.99 M5.1%-
2014$119 M21.99%$1.96 M1.6%-60.79%
2015$119 M-0.31%$1.97 M1.7%0.80%
2016$124 M4.46%$3.48 M2.8%76.42%
2017$119 M-4.02%$-0.35 M-0.3%-109.95%
2018$103 M-13.07%$-3.09 M-3.0%791.91%

Quarterly financial results

Lifeway Foods reported $23.03 M in sales for 2018-Q4, a -5.92% decline compared to previous quarter. Reported quarter earnings marked $-2.81 million with a profit margin of -12.21%. Profit margin plummed a -10.11% compared to previous quarter when profit margin was -2.10%. When comparing revenues to same quarter last year, Lifeway Foods sales marked a dreadful decrease and plunged a -12.28%. Looking back to recent quarterly results, Lifeway Foods posted 3 positive quarters in a row.
LWAY quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$32 M-$0.12 M0.4%-
2017-Q2$32 M-1.21%$1.04 M3.3%738.71%
2017-Q3$29 M-9.28%$0.24 M0.8%-76.63%
2017-Q4$26 M-8.79%$-1.75 M-6.7%-819.75%
2018-Q1$29 M9.46%$0.07 M0.2%-104.00%
2018-Q2$27 M-5.73%$0.17 M0.6%142.86%
2018-Q3$24 M-9.65%$-0.51 M-2.1%-402.35%
2018-Q4$23 M-5.92%$-2.81 M-12.2%447.08%

Lifeway Foods ownership

When you are planning to buy a stock, it's always worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Lifeway Foods, 73.10% of all outstanding shares are owned by its staff.

In case of Lifeway Foods stock, 11.17% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for LWAY stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Lifeway Foods:

LWAYDFTHS
Market cap$38.6 M$129.6 M$3.2 B
Total shares15.8 M91.9 M56.2 M
Float shares4.2 M90.3 M52.2 M
  - Institutional holdings (%)11.2%91.2%119.2%
  - Insider holdings (%)73.1%11.5%2.0%
Shares in short selling0.0%0.0%0.0%

LWAY summary

Friday, September 20th, 2019
Open$2.57
Close$2.45
Day range$2.41 - $2.50
Previous close$2.45
Session gain0.00%
Average true range$0.17
50d mov avg$2.97
100d mov avg$2.85
200d mov avg$2.59
Daily patternlb03a
Weekly pattern lt03a

Lifeway Foods performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For Lifeway Foods, the comparison is made against Dean Foods and Treehouse Foods.
Stock3m6m12m
LWAYLifeway Foods-35.36%13.95%-21.22%
DFDean Foods30.56%-52.20%-81.35%
THSTreehouse Foods2.54%-8.02%8.40%

Lifeway Foods competitors

Defining a list of competitors for Lifeway Foods it's a hard job. We selected 2 public companies that are related to and can be considered as competitors of Lifeway Foods: