Lamb Weston Chairman of the Board William G. Jurgensen reportedly acquired 18,000 shares of this packaged foods company, paying $92.01 per share for a total amount of $1.66 million. Jurgensen increased his stake by 14.00% to 146,536 shares with this purchase.
Potatonewstoday.com cites a report published by Seeking Alpha: “It is a little surprising to come across a company that focuses almost exclusively on potato snacks that is worth over $13 billion and afforded a valuation of nearly 18 times EBITDA. If you have come across a bag of Yukon Gold potatoes, you are looking at a Lamb Weston product.”
The market is probably affording the company a rich valuation because revenue has been growing high single-digits or double-digits for the last eight quarters, the company sports net margins of nearly 13% and beats estimates on both the top and bottom lines.
This is the first insider purchase at the company over the last two years. Jurgensen has been on the board of the company since 2017.