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LW
LONGINSIDER BUYLAMB WESTON HLDGS INC
Funds
3
Score
4.50
vs SPY
-13.2%
Stock return (since Q-end)
+3.1%
SPY return (since Q-end)
+16.3%
Current price
$43.18
News Summary
NeutralLamb Weston beat Q3 earnings expectations and raised FY2026 guidance, demonstrating operational momentum with strong North America performance and ahead-of-schedule cost savings achievement. However, the company faces intensifying activist pressure to double cost-reduction targets, ongoing litigation over its ERP system failures, and margin compression that drove net income down 63% year-over-year despite revenue growth.
Red flags
- •Net income declined 63% YoY despite 3% revenue growth, indicating significant margin pressure
- •Securities class action lawsuit proceeding over ERP system misrepresentations; prior $135M sales loss and $330M guidance cut from failed system rollout
- •Activist investors (Starboard Value, Jana Partners) demanding major operational overhaul—doubling cost targets to $500M and targeting 25% EBITDA margin by 2029, suggesting current trajectory insufficient
- •Argentina facility closure with $50-60M charges and Netherlands production line curtailment indicate ongoing restructuring complexity
- •Activist characterization of company at 'critical juncture' with 'normalized earnings and sustainable growth so far appear elusive' despite volume improvements
Funds Buying (3)
| Fund | Manager | Shares Held | ∆ Shares | Position Value | QoQ | Status |
|---|---|---|---|---|---|---|
| Starboard Value | Jeff Smith | 6.1M | +6.1M | $258.4B | — | NEW |
| Jana Partners | Barry Rosenstein | 5.0M | +5.0M | $211.7B | — | NEW |
| Point72 | Steve Cohen | 15K | +15K | $634M | — | NEW |
Shares Held and Position Value reflect total quarter-end holdings. ∆ Shares is the change from the prior quarter.
Insider Activity
| Name | Title | Type | Shares | Price | Value | Filed |
|---|---|---|---|---|---|---|
| Gray James D | Chief Financial Officer | BUY | 5K | $40.95 | $0.20M | 2026-05-11 |
| Gray James D | Chief Financial Officer | BUY | 5K | $40.90 | $0.20M | 2026-05-11 |
| Gray James D | Chief Financial Officer | BUY | 5K | $43.85 | $0.20M | 2026-04-27 |
| JANA Partners Management, LP | — | BUY | 50K | $43.19 | $2.16M | 2026-04-15 |
| JANA Partners Management, LP | — | BUY | 100K | $42.12 | $4.21M | 2026-04-13 |
| JANA Partners Management, LP | — | BUY | 100K | $41.41 | $4.14M | 2026-04-08 |
| JANA Partners Management, LP | — | BUY | 136K | $40.89 | $5.56M | 2026-04-07 |
| Prestage Norman | — | BUY | 3K | $41.40 | $0.10M | 2026-04-07 |
| Bensen Peter J | — | BUY | 5K | $39.45 | $0.20M | 2026-04-06 |