Robert Niblock, a director at Lamb Weston Holdings (LW), recently bought 3,000 shares. The buy increased his stake by 13%, and came to a total cost of $182,819.
This marks the first buy of 2025. In 2024, Niblock and two other directors were also buyers of shares, with purchases ranging from over $75,000 to $554,000. There were no insider sales in 2024, but there were in 2023, when prices traded more than 40% higher.
Overall, Lamb Weston Holdings insiders own about 0.9% of shares.
The producer and distributor of potato products shed 46% of its value over the past year. Earnings are also down about 45%, even as revenues declined by just 0.7%.
Despite steady food demand, changing consumer tastes and rising prices are creating a perfect storm for shares do take a dive.
Action to take: Lamb Weston shares are now trading close to their lows from the summer. Following that drop last year, the stock proceeded to rally over 50%. A similar short-term rebound could be likely in the months ahead, which makes for a good contrarian trade here.
Plus, at current prices, Lamb Weston currently pays a 1.8% dividend. The payment is well covered by earnings.
For traders, the April $65 calls, last trading for about $2.95, could see mid-to-high double-digit returns in the months ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.