Lamb Weston (NYSE:LW) Reaches New 12-Month Low – Time to Sell?

Lamb Weston (NYSE:LW) shares hit a new 52-week low during mid-day trading on Friday . The company traded as low as $47.23 and last traded at $47.2230, with a volume of 2686633 shares. The stock had previously closed at $59.33.

Key Stores Impacting Lamb Weston

Here are the key news stories impacting Lamb Weston this week:

• Positive Sentiment: Company beat the top-line and EPS expectations for the quarter (net sales ~$1.62B; EPS ~$0.69) and noted volume gains and market‑share progress — evidence the business still has demand momentum. Lamb Weston (LW) Q2 Earnings and Revenues Top Estimates
• Neutral Sentiment: Management reaffirmed FY2026 revenue guidance (roughly $6.4–$6.6B) and the company provided an updated outlook in its press release — they did not raise guidance despite the beat, leaving forecasts unchanged. Lamb Weston Reports Second Quarter Fiscal 2026 Results; Reaffirms Fiscal Year 2026 Outlook
• Negative Sentiment: Investors reacted to pronounced pricing pressure: margins and EBITDA contracted, and management commentary signaled continued cost and pricing headwinds — investors feared profit durability even with sales growth. Lamb Weston Shares Sink As Pricing Pressure Weighs
• Negative Sentiment: Despite the beat and guidance reaffirmation, the tone and results were viewed as underwhelming (profitability metrics improved from year-ago levels but fell short of where investors expected), triggering a large sell-off and pushing the stock toward multi‑year lows. Why is Lamb Weston stock on track for 6-year lows even after reaffirming guidance?
• Negative Sentiment: Market reaction was amplified by high-volume selling and headlines calling the quarter underwhelming; several outlets noted the stock plunged despite the modest beat, reflecting investor focus on margins and near‑term earnings risk. Lamb Weston (NYSE:LW) Beats Q4 CY2025 Sales Expectations But Stock Drops
• Neutral Sentiment: For deeper context, read the Q2 earnings call transcript and slide deck for management remarks on pricing, cost outlook and capital allocation that guided investor reactions. Lamb Weston Q2 2026 Earnings Call Transcript

Analyst Upgrades and Downgrades

Several brokerages have issued reports on LW. Cfra Research raised shares of Lamb Weston to a “hold” rating in a research report on Thursday, October 2nd. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Lamb Weston in a research note on Monday, December 15th. Wells Fargo & Company boosted their target price on Lamb Weston from $66.00 to $68.00 and gave the company an “overweight” rating in a report on Wednesday, October 1st. Deutsche Bank Aktiengesellschaft increased their price target on Lamb Weston from $59.00 to $61.00 and gave the stock a “hold” rating in a report on Wednesday, October 1st. Finally, Zacks Research cut shares of Lamb Weston from a “strong-buy” rating to a “hold” rating in a research note on Friday, December 12th. Four equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat, Lamb Weston currently has an average rating of “Hold” and an average target price of $64.89.

Lamb Weston Stock Performance

The stock has a market cap of $6.13 billion, a P/E ratio of 15.83, a PEG ratio of 4.03 and a beta of 0.44. The company has a debt-to-equity ratio of 2.05, a current ratio of 1.49 and a quick ratio of 0.77. The company has a fifty day moving average of $60.51 and a 200 day moving average of $57.16.

Lamb Weston (NYSE:LW) last issued its quarterly earnings results on Friday, December 19th. The specialty retailer reported $0.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.68 by $0.01. The company had revenue of $1.62 billion for the quarter, compared to analysts’ expectations of $1.59 billion. Lamb Weston had a return on equity of 28.08% and a net margin of 4.56%.The firm’s revenue for the quarter was up 1.1% on a year-over-year basis. During the same period last year, the firm earned $0.66 EPS. On average, equities analysts predict that Lamb Weston will post 3.1 earnings per share for the current fiscal year.

Lamb Weston Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, February 27th. Investors of record on Friday, January 30th will be issued a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date is Friday, January 30th. This is an increase from Lamb Weston’s previous quarterly dividend of $0.37. Lamb Weston’s payout ratio is presently 70.81%.

Institutional Trading of Lamb Weston

A number of large investors have recently added to or reduced their stakes in LW. Hudson Bay Capital Management LP bought a new position in shares of Lamb Weston in the third quarter valued at $719,000. Allworth Financial LP grew its holdings in shares of Lamb Weston by 40.1% in the 3rd quarter. Allworth Financial LP now owns 1,817 shares of the specialty retailer’s stock worth $106,000 after acquiring an additional 520 shares during the last quarter. Swiss Life Asset Management Ltd acquired a new stake in shares of Lamb Weston during the third quarter worth $347,000. ARQ Wealth Advisors LLC purchased a new stake in shares of Lamb Weston during the third quarter valued at $568,000. Finally, CIBC Private Wealth Group LLC lifted its holdings in shares of Lamb Weston by 48.6% during the third quarter. CIBC Private Wealth Group LLC now owns 3,275 shares of the specialty retailer’s stock valued at $190,000 after purchasing an additional 1,071 shares during the last quarter. 89.56% of the stock is currently owned by institutional investors.

Lamb Weston Company Profile

Lamb Weston, traded on the NYSE under the symbol LW, is a leading global processor and supplier of frozen potato products. The company’s portfolio includes a variety of potato-based items such as French fries, potato wedges, hash browns and specialty cuts tailored to the foodservice and retail grocery channels. Lamb Weston serves quick-service restaurants, full-service operators, grocery chains and food distributors, offering customized product formats, packaging solutions and seasoning options to meet evolving customer demands.

Founded in 1950 and headquartered in Eagle, Idaho, Lamb Weston has grown from a regional processor into one of the world’s largest producers of frozen potato products.