$64 Million Exit: Lamb Weston Stock Down 9% As Investor Dumps 1 Million Shares

1 week ago 13

Jonathan Ponciano, The Motley Fool

Mon, March 2, 2026 astatine 10:20 AM CST 3 min read

On February 17, 2026, Gates Capital Management, Inc. disclosed successful a U.S. Securities and Exchange Commission (SEC) filing that it sold retired of Lamb Weston (NYSE:LW), exiting 1,096,923 shares worthy $63.71 million.

An SEC filing dated February 17, 2026, shows Gates Capital Management, Inc. afloat liquidated its involvement successful Lamb Weston, selling 1,096,923 shares. The quarter-end worth of the presumption decreased by $63.71 million.

Top holdings aft the filing:
- NYSE:ATKR: $172.87 cardinal (6.0% of AUM)
- NYSE:DAR: $170.79 cardinal (5.9% of AUM)
- NYSE:CARR: $170.17 cardinal (5.9% of AUM)
- NYSE:SPGI: $150.27 cardinal (5.2% of AUM)
- NYSE:TIC: $149.99 cardinal (5.2% of AUM)
As of Monday, shares of Lamb Weston were priced astatine $47.47, down 9% implicit the past twelvemonth and trailing the S&P 500, which is alternatively up astir 17%.

Metric

Value

Revenue (TTM)	$6.47 billion
Net income (TTM)	$392.30 million
Dividend yield	3%
Price (as of Monday)	$47.47

Lamb Weston produces and markets value-added frozen murphy products, commercialized ingredients, and appetizers nether owned, licensed, and backstage statement brands.
The institution generates gross chiefly done the merchantability of frozen murphy products to retail, foodservice, and organization customers worldwide.
It serves market and wide retailers, foodservice distributors, restaurants, acquisition institutions, and convenience stores.

Lamb Weston is simply a starring supplier of frozen murphy products with a diversified planetary lawsuit basal crossed retail and foodservice channels. The institution leverages scale, marque portfolio, and operational expertise to support a beardown presumption successful the packaged foods industry. Strategic absorption connected innovation and wide organisation supports its competitory borderline successful value-added frozen foods.

Gates’ merchantability signals little condemnation successful a antiaircraft nutrient sanction astatine a infinitesimal erstwhile execution, not conscionable stability, is driving returns. Lamb Weston remains a standard subordinate successful frozen murphy products, but the latest 4th showed however competitory the scenery has become.

Second 4th nett income roseate 1% to $1.62 billion, portion adjusted EBITDA slipped 3% to $285.7 million. Volume climbed 8%, yet that spot was offset by an 8% diminution successful terms and premix arsenic the institution leaned into commercialized enactment to support share. Management reaffirmed full-year guidance for $6.35 cardinal to $6.55 cardinal successful income and $1.00 cardinal to $1.20 cardinal successful adjusted EBITDA and approved a 3% dividend hike, extending a dependable superior instrumentality streak.

Still, shares astir $47 beryllium astir 9% little implicit the past year, severely trailing a marketplace up astir 17%. Within a portfolio tilted toward concern and infrastructure names similar Atkore, Carrier, and TIC Solutions, a packaged foods relation facing pricing unit whitethorn simply fertile little connected upside potential.

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