Liberty One Reduces Stake in Lamb Weston, Indicating Waning Confidence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 16 2026
0mins
Source: Fool
Lamb Weston Holdings Inc shares fell 5.50% as it crossed below the 5-day SMA amid concerns over investor confidence.
Liberty One Investment Management reduced its stake in Lamb Weston by 544,473 shares, valued at approximately $32.04 million, reflecting a cautious outlook on the company's future performance. Following this sale, Lamb Weston now represents only 2.23% of Liberty One's portfolio, down from 3.1% in the previous quarter. The company has faced declining sales over the last two years, and its shares are down 12.4% over the past year, significantly underperforming the S&P 500 by 25 percentage points.
The reduction in stake by Liberty One highlights the challenges Lamb Weston faces in maintaining its competitive edge, especially with a net debt of $3.8 billion against a market cap of $6.9 billion, which may deter aggressive growth investors.
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Analyst Views on LW
Wall Street analysts forecast LW stock price to rise
9 Analyst Rating
3 Buy
6 Hold
0 Sell
Moderate Buy
Current: 42.570
Low
48.00
Averages
54.44
High
65.00
Current: 42.570
Low
48.00
Averages
54.44
High
65.00
About LW
Lamb Weston Holdings, Inc. is a global producer, distributor, and marketer of value-added frozen potato products. The Company is a supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers around the globe. The Company’s segments include North America and International. The Company’s frozen potato products are sold in North America and international markets generally to North American-based restaurant chains and international customers, comprised of global and regional quick service and full-service restaurant chains, foodservice distributors, and retailers. Its product portfolio includes frozen potatoes and appetizers sold under the Lamb Weston brand, as well as many customer labels. The Company’s product categories include classic fries, extra crispy fries, sweet potatoes, and other products. Its recipes include appetizers, desserts, dips, sauces and seasonings, entree, salad, side dishes, and topped and loaded.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lamb Weston Faces Securities Class Action Lawsuit
- Lawsuit Background: Lamb Weston Holdings, Inc. is facing a securities class action lawsuit for failing to disclose significant issues with its Enterprise Resource Planning (ERP) system, potentially leading to substantial damages for investors who purchased shares between July 25, 2023, and April 3, 2024.
- Financial Losses: On April 4, 2024, the company revealed that the disastrous rollout of its new ERP system resulted in a $135 million loss in sales during Q3 of fiscal 2024 and necessitated a $330 million reduction in its full-year sales guidance, severely impacting its financial outlook.
- Stock Price Reaction: Following this announcement, Lamb Weston’s stock price fell by $19.59 per share, indicating market concerns over the company's future profitability and potentially diminishing investor confidence.
- Legal Progress: On May 12, 2026, the court granted in part and denied in part the defendants' motion to dismiss, allowing the litigation to proceed, which means the company will face ongoing legal challenges that could affect its operations and reputation.
See More
Lamb Weston Faces Securities Class Action Lawsuit Risks
- Lawsuit Background: Lamb Weston Holdings, Inc. is facing a securities class action lawsuit from investors who purchased its securities between July 25, 2023, and April 3, 2024, due to undisclosed significant issues with its Enterprise Resource Planning (ERP) software system.
- Financial Losses: The disastrous rollout of the new ERP system resulted in a $135 million loss in sales during Q3 of fiscal 2024 and necessitated a $330 million reduction in the company's full-year sales guidance, severely impacting its financial outlook.
- Stock Price Volatility: Following the April 4, 2024, disclosure of the ERP issues, Lamb Weston's stock price plummeted by $19.59 per share, indicating a significant loss of investor confidence that could affect future investment decisions.
- Litigation Progress: On May 12, 2026, the court partially granted and denied the defendants' motion to dismiss, allowing the litigation to proceed, which means the company will face ongoing legal challenges that could have long-term implications for its reputation and financial stability.
See More
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- Portfolio Value: Starboard Value reported a first-quarter portfolio value of $4.57 billion, with Qorvo accounting for 13% of total holdings, indicating strong confidence in Qorvo and potential implications for future investment strategies.
- Client and Asset Management: As of March 6, 2026, Starboard managed approximately $8.15 billion in assets with 11 clients, reflecting its solid position and appeal in the hedge fund industry.
- Major Holdings Analysis: The fund held 7.51 million shares of Qorvo worth about $581 million, followed by Kenvue with 27.31 million shares valued at approximately $470.78 million, showcasing a diversified investment strategy in technology and consumer goods sectors.
- Quant Ratings Overview: Among Starboard's top 15 holdings, Kenvue and Acacia Research received quant ratings of 4.37 and 4.60 respectively, indicating their market potential and attractiveness to investors, which may influence investment decisions.
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Starboard Value Initiates New Positions in Consumer Stocks
- New Investment Positions: Activist investor Starboard Value initiated new positions in two consumer stocks, Lamb Weston and Carmax, valued at approximately $258 million as of March 31, indicating a strategic focus on the consumer sector.
- Strong Quarterly Performance: In the first quarter, Lamb Weston saw a nearly 2% increase in stock price, while Carmax jumped over 7%, reflecting an improvement in market performance and a potential recovery in consumer demand.
- Divergent Year-to-Date Trends: Despite Lamb Weston gaining over 5% in 2026, Carmax has fallen more than 4%, highlighting a significant divergence in their market trajectories that could influence investor decisions moving forward.
- Increased Stake in Bitcoin Stock: Starboard also raised its position in Riot Platforms by 22%, and although the stock declined more than 2% in the quarter, it has surged over 85% this year, demonstrating ongoing confidence in digital infrastructure investments.
See More
Starboard Value Adds Positions in CarMax and Lamb Weston
- New Investment Moves: Starboard Value added positions in CarMax and Lamb Weston during Q1, acquiring 6.2M and 6.1M shares valued at $258M each, indicating strong confidence that could drive stock price appreciation.
- Portfolio Diversification: The hedge fund also increased its stakes in Riot Platforms and TripAdvisor, with 2.8M and 1.13M shares respectively, demonstrating a strategic intent to diversify its portfolio and capture growth opportunities across different markets.
- Stake Reduction Strategy: Starboard reduced its holdings in Gen Digital, Clearwater Analytics, Healthcare Realty, Fluor, and Becton Dickinson by over 1.5M shares in total, reflecting a cautious outlook on these companies' prospects, which may impact their future market performance.
- Board Changes: CarMax appointed two new directors recently, one of whom was nominated by Starboard, a move that could influence the company's strategic direction and governance structure, thereby enhancing investor confidence.
See More
Halper Sadeh LLC Investigates Lamb Weston Executives' Fiduciary Duties
- Shareholder Rights Protection: Halper Sadeh LLC is investigating whether certain executives of Lamb Weston Holdings, Inc. breached their fiduciary duties, which could lead to corporate governance reforms and fund recovery, thereby enhancing shareholder value if violations are confirmed.
- Legal Fee Arrangement: The firm operates on a contingency fee basis, meaning shareholders will not incur out-of-pocket legal expenses, which reduces the financial burden on shareholders and encourages more to actively protect their rights.
- Importance of Shareholder Participation: Involvement from shareholders can improve company policies and oversight mechanisms, promoting transparency and accountability, which enhances management efficiency and shareholder value, highlighting the power of collective action.
- Global Investor Representation: Halper Sadeh LLC represents investors worldwide, focusing on combating securities fraud and corporate misconduct, and has successfully implemented corporate reforms that have recovered millions for defrauded investors, showcasing its expertise in protecting investor rights.
See More
Lamb Weston Faces Securities Class Action Lawsuit
- Lawsuit Background: Lamb Weston Holdings, Inc. is facing a securities class action lawsuit for failing to disclose significant issues with its Enterprise Resource Planning (ERP) system, potentially leading to substantial damages for investors who purchased shares between July 25, 2023, and April 3, 2024.
- Financial Losses: On April 4, 2024, the company revealed that the disastrous rollout of its new ERP system resulted in a $135 million loss in sales during Q3 of fiscal 2024 and necessitated a $330 million reduction in its full-year sales guidance, severely impacting its financial outlook.
- Stock Price Reaction: Following this announcement, Lamb Weston’s stock price fell by $19.59 per share, indicating market concerns over the company's future profitability and potentially diminishing investor confidence.
- Legal Progress: On May 12, 2026, the court granted in part and denied in part the defendants' motion to dismiss, allowing the litigation to proceed, which means the company will face ongoing legal challenges that could affect its operations and reputation.
See More
Lamb Weston Faces Securities Class Action Lawsuit Risks
- Lawsuit Background: Lamb Weston Holdings, Inc. is facing a securities class action lawsuit from investors who purchased its securities between July 25, 2023, and April 3, 2024, due to undisclosed significant issues with its Enterprise Resource Planning (ERP) software system.
- Financial Losses: The disastrous rollout of the new ERP system resulted in a $135 million loss in sales during Q3 of fiscal 2024 and necessitated a $330 million reduction in the company's full-year sales guidance, severely impacting its financial outlook.
- Stock Price Volatility: Following the April 4, 2024, disclosure of the ERP issues, Lamb Weston's stock price plummeted by $19.59 per share, indicating a significant loss of investor confidence that could affect future investment decisions.
- Litigation Progress: On May 12, 2026, the court partially granted and denied the defendants' motion to dismiss, allowing the litigation to proceed, which means the company will face ongoing legal challenges that could have long-term implications for its reputation and financial stability.
See More
Starboard Value Reports $4.57B Q1 Portfolio Value with Qorvo as Top Holding
- Portfolio Value: Starboard Value reported a first-quarter portfolio value of $4.57 billion, with Qorvo accounting for 13% of total holdings, indicating strong confidence in Qorvo and potential implications for future investment strategies.
- Client and Asset Management: As of March 6, 2026, Starboard managed approximately $8.15 billion in assets with 11 clients, reflecting its solid position and appeal in the hedge fund industry.
- Major Holdings Analysis: The fund held 7.51 million shares of Qorvo worth about $581 million, followed by Kenvue with 27.31 million shares valued at approximately $470.78 million, showcasing a diversified investment strategy in technology and consumer goods sectors.
- Quant Ratings Overview: Among Starboard's top 15 holdings, Kenvue and Acacia Research received quant ratings of 4.37 and 4.60 respectively, indicating their market potential and attractiveness to investors, which may influence investment decisions.
See More
Starboard Value Initiates New Positions in Consumer Stocks
- New Investment Positions: Activist investor Starboard Value initiated new positions in two consumer stocks, Lamb Weston and Carmax, valued at approximately $258 million as of March 31, indicating a strategic focus on the consumer sector.
- Strong Quarterly Performance: In the first quarter, Lamb Weston saw a nearly 2% increase in stock price, while Carmax jumped over 7%, reflecting an improvement in market performance and a potential recovery in consumer demand.
- Divergent Year-to-Date Trends: Despite Lamb Weston gaining over 5% in 2026, Carmax has fallen more than 4%, highlighting a significant divergence in their market trajectories that could influence investor decisions moving forward.
- Increased Stake in Bitcoin Stock: Starboard also raised its position in Riot Platforms by 22%, and although the stock declined more than 2% in the quarter, it has surged over 85% this year, demonstrating ongoing confidence in digital infrastructure investments.
See More
Starboard Value Adds Positions in CarMax and Lamb Weston
- New Investment Moves: Starboard Value added positions in CarMax and Lamb Weston during Q1, acquiring 6.2M and 6.1M shares valued at $258M each, indicating strong confidence that could drive stock price appreciation.
- Portfolio Diversification: The hedge fund also increased its stakes in Riot Platforms and TripAdvisor, with 2.8M and 1.13M shares respectively, demonstrating a strategic intent to diversify its portfolio and capture growth opportunities across different markets.
- Stake Reduction Strategy: Starboard reduced its holdings in Gen Digital, Clearwater Analytics, Healthcare Realty, Fluor, and Becton Dickinson by over 1.5M shares in total, reflecting a cautious outlook on these companies' prospects, which may impact their future market performance.
- Board Changes: CarMax appointed two new directors recently, one of whom was nominated by Starboard, a move that could influence the company's strategic direction and governance structure, thereby enhancing investor confidence.
See More
Halper Sadeh LLC Investigates Lamb Weston Executives' Fiduciary Duties
- Shareholder Rights Protection: Halper Sadeh LLC is investigating whether certain executives of Lamb Weston Holdings, Inc. breached their fiduciary duties, which could lead to corporate governance reforms and fund recovery, thereby enhancing shareholder value if violations are confirmed.
- Legal Fee Arrangement: The firm operates on a contingency fee basis, meaning shareholders will not incur out-of-pocket legal expenses, which reduces the financial burden on shareholders and encourages more to actively protect their rights.
- Importance of Shareholder Participation: Involvement from shareholders can improve company policies and oversight mechanisms, promoting transparency and accountability, which enhances management efficiency and shareholder value, highlighting the power of collective action.
- Global Investor Representation: Halper Sadeh LLC represents investors worldwide, focusing on combating securities fraud and corporate misconduct, and has successfully implemented corporate reforms that have recovered millions for defrauded investors, showcasing its expertise in protecting investor rights.
See More
