Starboard Value Adds Positions in CarMax and Lamb Weston
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: seekingalpha
- 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.
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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: 42.330
Low
48.00
Averages
54.44
High
65.00
Current: 42.330
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.
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 Appoints New CFO and Grants Stock Awards
- Executive Appointment: Lamb Weston appointed James D. Gray as Chief Financial Officer on April 2, 2026, aiming to enhance financial performance and boost investor confidence through his extensive financial management experience.
- Stock Award Plan: The company granted 15,096 restricted stock units to Gray on May 11, 2026, as a dollar-for-dollar match on his personal investment, reflecting the company's commitment to valuing his long-term contributions.
- Vesting Schedule: These restricted stock units will vest at 33%, 33%, and 34% on May 11, 2027, May 9, 2028, and May 8, 2029, respectively, ensuring Gray's alignment with the company's performance over the next three years to drive growth.
- Compliance Statement: The grant of these stock awards was made in reliance on the employment inducement exemption under NYSE's Listed Company Manual Rule 303A.08, ensuring transparency and compliance with regulatory requirements.
See More
Starboard Value Pushes Lamb Weston for Investor Day to Boost Earnings Growth
- Investor Pressure: Activist investor Starboard Value LP is urging Lamb Weston to hold an Investor Day to clarify its earnings growth plans, reflecting investor concerns as the company's shares have dropped 18% over the past year.
- Earnings Stagnation: While Lamb Weston has made progress in improving volume trends, earnings have not grown, and Starboard emphasizes the need for the company to articulate a clear path forward to rebuild investor confidence, highlighting the importance of an Investor Day.
- Cost Savings Initiative: Starboard points out that Lamb Weston aims for 25% adjusted EBITDA margins by FY2029, and although the company has announced a $250 million cost savings program, it has primarily focused on cost of goods sold, neglecting SG&A expenses that have nearly tripled over the past decade.
- Strategic Unit Evaluation: Starboard also recommends that Lamb Weston evaluate its strategic business units to optimize its portfolio, indicating that the company needs to take more proactive measures to enhance overall operational efficiency and profitability at this critical juncture.
See More
Starboard Calls for Lamb Weston Investor Day to Boost Earnings Growth
- Investor Confidence Rebuilding: Starboard Value LP has called for Lamb Weston to hold an Investor Day to outline its path to sustainable earnings growth, aiming to rebuild investor confidence through transparent communication and enhance market recognition of the company.
- Profitability Target: Starboard believes that Lamb Weston should achieve a 25% adjusted EBITDA margin by FY 2029, which would significantly enhance the company's profitability and shareholder returns, strengthening its competitive position in the industry.
- Shareholder Engagement: As a significant shareholder of Lamb Weston, Starboard actively engages with the board to push management to identify and execute on value-unlocking opportunities, demonstrating its keen interest in the company's future development.
- Investment Strategy: Starboard employs a focused investment strategy targeting deeply undervalued companies, aiming to collaborate with management to drive long-term value growth and further enhance shareholder interests.
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
Lamb Weston Appoints New CFO and Grants Stock Awards
- Executive Appointment: Lamb Weston appointed James D. Gray as Chief Financial Officer on April 2, 2026, aiming to enhance financial performance and boost investor confidence through his extensive financial management experience.
- Stock Award Plan: The company granted 15,096 restricted stock units to Gray on May 11, 2026, as a dollar-for-dollar match on his personal investment, reflecting the company's commitment to valuing his long-term contributions.
- Vesting Schedule: These restricted stock units will vest at 33%, 33%, and 34% on May 11, 2027, May 9, 2028, and May 8, 2029, respectively, ensuring Gray's alignment with the company's performance over the next three years to drive growth.
- Compliance Statement: The grant of these stock awards was made in reliance on the employment inducement exemption under NYSE's Listed Company Manual Rule 303A.08, ensuring transparency and compliance with regulatory requirements.
See More
Starboard Value Pushes Lamb Weston for Investor Day to Boost Earnings Growth
- Investor Pressure: Activist investor Starboard Value LP is urging Lamb Weston to hold an Investor Day to clarify its earnings growth plans, reflecting investor concerns as the company's shares have dropped 18% over the past year.
- Earnings Stagnation: While Lamb Weston has made progress in improving volume trends, earnings have not grown, and Starboard emphasizes the need for the company to articulate a clear path forward to rebuild investor confidence, highlighting the importance of an Investor Day.
- Cost Savings Initiative: Starboard points out that Lamb Weston aims for 25% adjusted EBITDA margins by FY2029, and although the company has announced a $250 million cost savings program, it has primarily focused on cost of goods sold, neglecting SG&A expenses that have nearly tripled over the past decade.
- Strategic Unit Evaluation: Starboard also recommends that Lamb Weston evaluate its strategic business units to optimize its portfolio, indicating that the company needs to take more proactive measures to enhance overall operational efficiency and profitability at this critical juncture.
See More
Starboard Calls for Lamb Weston Investor Day to Boost Earnings Growth
- Investor Confidence Rebuilding: Starboard Value LP has called for Lamb Weston to hold an Investor Day to outline its path to sustainable earnings growth, aiming to rebuild investor confidence through transparent communication and enhance market recognition of the company.
- Profitability Target: Starboard believes that Lamb Weston should achieve a 25% adjusted EBITDA margin by FY 2029, which would significantly enhance the company's profitability and shareholder returns, strengthening its competitive position in the industry.
- Shareholder Engagement: As a significant shareholder of Lamb Weston, Starboard actively engages with the board to push management to identify and execute on value-unlocking opportunities, demonstrating its keen interest in the company's future development.
- Investment Strategy: Starboard employs a focused investment strategy targeting deeply undervalued companies, aiming to collaborate with management to drive long-term value growth and further enhance shareholder interests.
See More
