Conagra Brands (NYSE:CAG) Given Consensus Recommendation of "Reduce" by Brokerages

Key Points

• Conagra Brands has a consensus broker rating of "Reduce", based on 18 analysts: five sell, 12 hold, and one buy. The average 12-month price target is about $15.73.
• The stock was trading around $13.93, near its 52-week low of $13.42 and well below its 52-week high of $23.37. Recent analyst actions included multiple price-target cuts, with several firms maintaining hold ratings and Goldman Sachs issuing a sell rating.
• The company recently missed quarterly EPS estimates by a penny but beat revenue expectations, and it announced a $0.35 quarterly dividend payable June 3, implying a very high annualized yield of about 10.1%. Two directors also bought shares in April, signaling insider confidence.

Shares of Conagra Brands (NYSE:CAG - Get Free Report) have been given a consensus rating of "Reduce" by the eighteen brokerages that are presently covering the firm, Marketbeat.com reports. Five investment analysts have rated the stock with a sell recommendation, twelve have assigned a hold recommendation and one has given a buy recommendation to the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $15.7333.

Several equities research analysts have recently weighed in on the company. Deutsche Bank Aktiengesellschaft reduced their price objective on Conagra Brands from $18.00 to $14.00 and set a "hold" rating for the company in a research report on Monday, March 30th. Stifel Nicolaus reduced their price objective on Conagra Brands from $17.00 to $15.00 and set a "hold" rating for the company in a research report on Tuesday, April 21st. Jefferies Financial Group reduced their price objective on Conagra Brands from $16.00 to $15.00 and set a "hold" rating for the company in a research report on Monday, March 30th. The Goldman Sachs Group reduced their price objective on Conagra Brands from $17.00 to $15.00 and set a "sell" rating for the company in a research report on Thursday, April 2nd. Finally, Wall Street Zen raised Conagra Brands from a "sell" rating to a "hold" rating in a research report on Saturday, February 21st.

Conagra Brands Trading Up 1.0%

Conagra Brands stock opened at $13.93 on Wednesday. Conagra Brands has a 52 week low of $13.42 and a 52 week high of $23.37. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.30 and a current ratio of 0.90. The firm has a market capitalization of $6.66 billion and a PE ratio of -139.24. The business's 50-day simple moving average is $15.06 and its 200-day simple moving average is $16.85.

Conagra Brands (NYSE:CAG - Get Free Report) last posted its quarterly earnings data on Wednesday, April 1st. The company reported $0.39 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.01). Conagra Brands had a negative net margin of 0.39% and a positive return on equity of 10.15%. The business had revenue of $2.79 billion during the quarter, compared to the consensus estimate of $2.76 billion. During the same period in the prior year, the company posted $0.51 earnings per share. The firm's revenue was down 1.9% compared to the same quarter last year. Equities research analysts forecast that Conagra Brands will post 1.7 earnings per share for the current year.

Conagra Brands Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 3rd. Stockholders of record on Thursday, April 30th will be given a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 10.1%. The ex-dividend date of this dividend is Thursday, April 30th. Conagra Brands's dividend payout ratio is currently -1,400.00%.

Insiders Place Their Bets

In other news, Director John J. Mulligan bought 17,500 shares of the business's stock in a transaction that occurred on Tuesday, April 14th. The stock was acquired at an average cost of $14.31 per share, for a total transaction of $250,425.00. Following the completion of the purchase, the director owned 20,728 shares of the company's stock, valued at $296,617.68. This trade represents a 542.13% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Richard H. Lenny bought 25,000 shares of the business's stock in a transaction that occurred on Tuesday, April 14th. The stock was purchased at an average price of $14.34 per share, with a total value of $358,500.00. Following the completion of the purchase, the director directly owned 229,340 shares of the company's stock, valued at $3,288,735.60. This represents a 12.23% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.57% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. WealthPlan Investment Management LLC raised its stake in shares of Conagra Brands by 5.3% in the fourth quarter. WealthPlan Investment Management LLC now owns 10,920 shares of the company's stock valued at $189,000 after purchasing an additional 548 shares in the last quarter. International Private Wealth Advisors LLC raised its stake in shares of Conagra Brands by 4.9% in the fourth quarter. International Private Wealth Advisors LLC now owns 13,153 shares of the company's stock valued at $228,000 after purchasing an additional 609 shares in the last quarter. All Terrain Financial Advisors LLC raised its stake in shares of Conagra Brands by 0.3% in the fourth quarter. All Terrain Financial Advisors LLC now owns 176,971 shares of the company's stock valued at $3,063,000 after purchasing an additional 609 shares in the last quarter. Blair William & Co. IL raised its stake in shares of Conagra Brands by 0.5% in the third quarter. Blair William & Co. IL now owns 136,235 shares of the company's stock valued at $2,494,000 after purchasing an additional 633 shares in the last quarter. Finally, Jackson Hole Capital Partners LLC raised its stake in shares of Conagra Brands by 4.1% in the fourth quarter. Jackson Hole Capital Partners LLC now owns 17,960 shares of the company's stock valued at $311,000 after purchasing an additional 701 shares in the last quarter. 83.75% of the stock is currently owned by institutional investors and hedge funds.

About Conagra Brands

Conagra Brands, Inc is a leading packaged foods company based in Chicago, Illinois, with a broad portfolio of shelf-stable, frozen and refrigerated foods marketed under familiar brands. The company develops, produces and distributes a wide range of consumer food products, serving both retail grocery and foodservice channels. Conagra's product lineup includes frozen entrees, snacks, condiments, baking goods and desserts, providing convenient meal solutions for consumers across North America and select international markets.

Among its well-known brands are Birds Eye, Healthy Choice, Lean Cuisine, Marie Callender's and Banquet in the frozen foods category, as well as Hunt's sauces, Orville Redenbacher's popcorn, Slim Jim meat snacks and Reddi-wip toppings.

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