$50 Million Still at Stake as Manager Cuts Exposure to Volatile Food Stock Down 28% This Past Year
Key Points
Douglas Lane sold 65,461 shares of Lamb Weston in the fourth quarter; the estimated transaction value was $3.85 million based on quarterly average prices.
The quarter-end position value decreased by $23.45 million, reflecting both trading activity and price movement.
As of quarter-end, Douglas Lane reported holding 1,213,884 LW shares valued at $50.85 million.
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On January 22, Douglas Lane & Associates disclosed a sale of 65,461 shares of Lamb Weston Holdings (NYSE:LW) for an estimated $3.85 million based on quarterly average pricing.
What happened
According to an SEC filing dated January 22, Douglas Lane & Associates sold 65,461 shares of Lamb Weston during the fourth quarter. The estimated value of this trade is $3.85 million, calculated using the average closing price for the quarter. At quarter-end, the fund held 1,213,884 shares of Lamb Weston valued at $50.85 million. The position's value fell by $23.45 million over the period, reflecting both sales and price changes.
What else to know
Top holdings after the filing:
- NASDAQ:GOOGL: $314.35 million (4.4% of AUM)
- NASDAQ:NVDA: $294.52 million (4.1% of AUM)
- NASDAQ:QCOM: $167.19 million (2.3% of AUM)
- NASDAQ:MSFT: $167.18 million (2.3% of AUM)
- NYSE:MS: $142.12 million (2.0% of AUM)
As of January 21, shares of Lamb Weston were priced at $44.32, down 27.5% over the past year and lagging the S&P 500 by 41.14 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $6.47 billion |
| Net Income (TTM) | $392.30 million |
| Dividend Yield | 3.5% |
| Price (as of 2026-01-21) | $44.32 |
Company snapshot
- Lamb Weston Holdings produces and markets value-added frozen potato products, commercial ingredients, and appetizers globally under owned and licensed brands.
- The company generates revenue primarily through sales of frozen potato products to foodservice and retail customers worldwide.
- It serves retail and foodservice operators, including grocery chains, mass merchants, restaurants, and convenience stores worldwide.
Lamb Weston Holdings, Inc. is a leading global supplier of frozen potato products, operating across multiple distribution channels with a diverse customer base. The company leverages its scale, brand portfolio, and integrated production capabilities to maintain a strong presence in the packaged foods sector.
What this transaction means for investors
Against a portfolio dominated by mega-cap growth and financials, reducing exposure here looks less like a loss of conviction and more like risk management. Lamb Weston’s latest quarter showed signs of operational stabilization. Fiscal Q2 net sales rose 1% year over year to $1.62 billion, while net income swung sharply positive to $62.1 million from a loss of $36.1 million a year earlier. Management reiterated full-year guidance, targeting $6.35 billion to $6.55 billion in sales and up to $1.20 billion in adjusted EBITDA, and raised the quarterly dividend by 3%. That’s not the profile of a business in distress.
But the market has been unforgiving. Shares are down roughly 28% over the past year, underperforming the S&P 500 by more than 40 points. Pricing pressure, customer concessions, and uneven international utilization continue to weigh on sentiment. Long-term investors should watch whether cost savings and volume gains translate into sustained margin expansion before expecting a rerating.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, JPMorgan Chase, Microsoft, Nvidia, and Qualcomm. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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