Maxim Group Sticks to Its Buy Rating for Landec Corp (LNDC)

By Ryan Adsit

In a report released yesterday, Anthony Vendetti from Maxim Group maintained a Buy rating on Landec Corp (LNDCResearch Report), with a price target of $17. The company’s shares closed yesterday at $9.66, close to its 52-week low of $9.02.

Vendetti observed:

“Market close, new Landec CEO, Dr. Albert Bolles announced his strategy for sustained profitable growth. The main focus will be on simplifying and increasing profitability of the Curation Foods division with immediate steps already taken to bolster the business. The company is reducing its reliance on low-margin packaged vegetables and focusing on high margin offerings, including its clean label and plant-based protein products. We are slightly increasing our FY19 (May) revenue outlook to $557.6M, from $556.7M, but decreasing our FY19 GAAP EPS estimate to $0.01, from $0.16.”

According to TipRanks.com, Vendetti is a 3-star analyst with an average return of 2.5% and a 47.3% success rate. Vendetti covers the Healthcare sector, focusing on stocks such as Restoration Robotics Inc, Xtant Medical Holdings, and Ra Medical Systems Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Landec Corp with a $13.67 average price target.

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Based on Landec Corp’s latest earnings release for the quarter ending February 28, the company reported a quarterly net profit of $1.07 million. In comparison, last year the company had a net profit of $6.11 million.

Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LNDC in relation to earlier this year. Most recently, in May 2019, Albert Bolles, the CEO of LNDC bought 4,240 shares for a total of $42,018.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Landec Corp. engages in the design, development, manufacture and sale of health and wellness products for food and biomaterials markets. It operates through the following segments: Packaged Fresh Vegetables, Biomaterials, and Other. The Packaged Fresh Vegetables segment markets and packs specialty packaged whole, and fresh-cut fruit and vegetables.