Lamb Weston Stock Declines 61% Amid Structural Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 23 2025
0mins
Source: Benzinga
- Stock Price Decline: Since July 2023, Lamb Weston has experienced a decline of over 61%, indicating persistent selling pressure and pronounced bearish sentiment, suggesting that the company is facing structural weaknesses that warrant investor caution.
- Cycle Analysis Reveals Issues: According to the Adhishthana cycle theory, Lamb Weston is currently in Phase 12 on the weekly chart and failed to achieve the expected breakout in Phase 9, instead experiencing a downside Cakra break that triggered strong selling momentum.
- Monthly Chart Shows Deviation: On the monthly chart, Lamb Weston is in Phase 2, having failed to consolidate effectively during the Sankhya period, which led to premature gains that were unsustainable, resulting in a sharp collapse during the Buddhi phase that exacerbated the bearish trend.
- Cautious Investor Outlook: Given the current structural weakness, investors should exercise patience when considering increasing exposure, as clearer opportunities will only emerge once the stock enters its Guna Triads, allowing for a better assessment of potential sustainable reversals.
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Analyst Views on LW
Wall Street analysts forecast LW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LW is 54.44 USD with a low forecast of 48.00 USD and a high forecast of 65.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
3 Buy
6 Hold
0 Sell
Moderate Buy
Current: 45.470
Low
48.00
Averages
54.44
High
65.00
Current: 45.470
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.
Douglas Lane Sells 65,461 Shares of Lamb Weston for $3.85 Million
- Share Sale Details: Douglas Lane sold 65,461 shares of Lamb Weston in Q4 for approximately $3.85 million, indicating a strategic move towards risk management amid market pressures.
- Holding Value Decline: At the end of the quarter, the fund held 1,213,884 shares of Lamb Weston valued at $50.85 million, down $23.45 million from the previous quarter, reflecting diminished market confidence.
- Financial Performance Overview: Lamb Weston reported a 1% year-over-year increase in net sales to $1.62 billion for the latest quarter, with net income rebounding to $62.1 million from a loss of $36.1 million a year earlier, suggesting operational stabilization.
- Market Performance Analysis: Despite improved financial metrics, the stock price has fallen approximately 28% over the past year, significantly underperforming the S&P 500, highlighting concerns over pricing pressures and customer concessions.
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Douglas Lane Sells 65,461 Shares of Lamb Weston for Estimated $3.85 Million
- Transaction Overview: Douglas Lane sold 65,461 shares of Lamb Weston in Q4 for an estimated $3.85 million, highlighting ongoing market pressure on the stock.
- Position Change: As of quarter-end, Lane held 1,213,884 shares valued at $50.85 million, a decrease of $23.45 million from the previous quarter, reflecting the dual impact of trading activity and price movements.
- Performance Recovery: Lamb Weston’s latest earnings report indicates a 1% year-over-year increase in Q2 net sales to $1.62 billion, with net income swinging from a loss of $36.1 million to a profit of $62.1 million, suggesting operational stabilization.
- Market Performance: Despite the improvement in company performance, Lamb Weston’s stock price has dropped approximately 28% over the past year, significantly underperforming the S&P 500 by 41 percentage points, reflecting market concerns over pricing pressures and customer concessions.
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