Liberty One Cuts Its Lamb Weston Position in Half With $32 Million Sale

Company Overview - Lamb Weston is a global leader in frozen potato products, serving both retail and foodservice markets with a diversified brand portfolio [1] - The company generates revenue by manufacturing and distributing frozen foods to various customers globally, including grocery retailers, foodservice operators, and educational institutions [8] - As of February 13, 2026, Lamb Weston reported a revenue of $6.47 billion and a net income of $392.30 million, with a dividend yield of 2.99% [5] Recent Developments - Liberty One Investment Management reduced its position in Lamb Weston by 544,473 shares during Q4 2025, with an estimated transaction value of approximately $32.04 million [2] - Following this sale, Lamb Weston constituted 2.23% of Liberty One's 13F reportable AUM, down from 3.1% in the previous quarter [3][4] - As of the same date, Lamb Weston shares were priced at $49.82, reflecting a 12.4% decline over the past year, underperforming the S&P 500 by 25 percentage points [4] Financial Metrics - The company has a reasonable EV-to-EBITDA ratio of 9 and a P/E ratio of 11, but carries a net debt of $3.8 billion against a market cap of $6.9 billion [10] - Over the last decade, Lamb Weston has returned over $2 billion to shareholders through dividends and share repurchases, while also paying approximately $1 billion in interest [10] Investment Perspective - Lamb Weston is viewed as a stock that sits between a turnaround and a value stock, with its current valuation potentially appealing to value and income-seeking investors [11] - Despite the company's challenges, including a dip in sales over the last two years, it is not considered to be in immediate danger [11]