Shares of frozen foods supplier Lamb Weston (NYSE:LW) surged as much as 11.5% on Friday, reaching a high of $79.16, the company’s highest point in nearly three months.
The rally follows news that activist investor Jana Partners has acquired a 5% stake in Lamb Weston, according to a regulatory filing.
In the filing, Jana Partners expressed that it believes Lamb Weston shares are currently undervalued.
The investment firm plans to engage with the company’s board on several key strategic issues, including the potential review of strategic alternatives, a revised share repurchase strategy, and adjustments to the board composition.
If the gains hold, the stock will be on track for its best day since October 5, 2023.
This boost comes after a challenging period for the company, which earlier this month lowered its annual profit forecast and announced job cuts due to reduced spending in restaurants and growing competition in international markets.
Despite today's surge, Lamb Weston’s stock has struggled throughout the year, having fallen 34% year-to-date as of its last close