Conagra Brands (NYSE:CAG) Hits New 1-Year Low on Analyst Downgrade

Key Points

• Conagra Brands hit a new 52-week low after Jefferies cut its price target to $13 from $15, with the stock trading as low as $13.14 during the session. The downgrade added pressure to a name already under scrutiny from analysts.
• Several firms have recently lowered their outlooks on Conagra, and the stock now carries a consensus “Reduce” rating with an average target price of $15.47. Analyst sentiment is broadly cautious, with many Hold and Sell ratings.
• Despite the weak stock performance, two directors bought shares in April, signaling some insider confidence. Conagra also pays a quarterly dividend of $0.35, implying a high annualized yield of about 10.4%.

Conagra Brands (NYSE:CAG - Get Free Report) shares reached a new 52-week low during mid-day trading on Thursday after Jefferies Financial Group lowered their price target on the stock from $15.00 to $13.00. Jefferies Financial Group currently has a hold rating on the stock. Conagra Brands traded as low as $13.14 and last traded at $13.4050, with a volume of 1390190 shares. The stock had previously closed at $13.33.

Several other equities analysts also recently weighed in on the stock. The Goldman Sachs Group reduced their target price on shares of Conagra Brands from $17.00 to $15.00 and set a "sell" rating for the company in a research note on Thursday, April 2nd. Wells Fargo & Company decreased their target price on Conagra Brands from $14.00 to $13.00 and set an "underweight" rating on the stock in a research note on Monday, May 18th. Royal Bank Of Canada decreased their price target on shares of Conagra Brands from $20.00 to $17.00 and set a "sector perform" rating on the stock in a report on Thursday, April 2nd. Deutsche Bank Aktiengesellschaft decreased their price objective on Conagra Brands from $18.00 to $14.00 and set a "hold" rating on the stock in a report on Monday, March 30th. Finally, Weiss Ratings cut shares of Conagra Brands from a "sell (d+)" rating to a "sell (d)" rating in a research report on Wednesday, May 20th. One equities research analyst has rated the stock with a Buy rating, twelve have given a Hold rating and five have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus target price of $15.47.

Insider Buying and Selling at Conagra Brands

In related news, Director Richard H. Lenny purchased 25,000 shares of the stock in a transaction dated 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 transaction, the director directly owned 229,340 shares in the company, valued at $3,288,735.60. This trade represents a 12.23% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director John J. Mulligan bought 17,500 shares of the company's stock in a transaction dated Tuesday, April 14th. The stock was purchased at an average price of $14.31 per share, for a total transaction of $250,425.00. Following the purchase, the director owned 20,728 shares of the company's stock, valued at approximately $296,617.68. This represents a 542.13% increase in their position. The SEC filing for this purchase provides additional information. 0.57% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. WealthPlan Investment Management LLC increased its position in Conagra Brands by 5.3% in the fourth quarter. WealthPlan Investment Management LLC now owns 10,920 shares of the company's stock worth $189,000 after buying an additional 548 shares in the last quarter. International Private Wealth Advisors LLC lifted its position in shares of Conagra Brands by 4.9% during the 4th quarter. International Private Wealth Advisors LLC now owns 13,153 shares of the company's stock valued at $228,000 after buying an additional 609 shares in the last quarter. All Terrain Financial Advisors LLC grew its stake in shares of Conagra Brands by 0.3% during the 4th quarter. All Terrain Financial Advisors LLC now owns 176,971 shares of the company's stock valued at $3,063,000 after acquiring an additional 609 shares during the period. Blair William & Co. IL grew its stake in shares of Conagra Brands by 0.5% during the 3rd quarter. Blair William & Co. IL now owns 136,235 shares of the company's stock valued at $2,494,000 after acquiring an additional 633 shares during the period. Finally, Jackson Hole Capital Partners LLC increased its holdings in Conagra Brands by 4.1% in the 4th quarter. Jackson Hole Capital Partners LLC now owns 17,960 shares of the company's stock worth $311,000 after acquiring an additional 701 shares in the last quarter. Institutional investors own 83.75% of the company's stock.

Conagra Brands Stock Up 1.2%

The company has a market capitalization of $6.46 billion and a PE ratio of -134.94. The company's fifty day moving average is $14.63 and its 200-day moving average is $16.69. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.30 and a current ratio of 0.90.

Conagra Brands (NYSE:CAG - Get Free Report) last issued its quarterly earnings results on Wednesday, April 1st. The company reported $0.39 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.40 by ($0.01). Conagra Brands had a positive return on equity of 10.15% and a negative net margin of 0.39%.The business had revenue of $2.79 billion during the quarter, compared to analysts' expectations of $2.76 billion. During the same quarter in the previous year, the company posted $0.51 EPS. The company's quarterly revenue was down 1.9% on a year-over-year basis. As a group, analysts predict that Conagra Brands will post 1.7 EPS for the current fiscal year.

Conagra Brands Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 3rd. Stockholders of record on Thursday, April 30th will be paid a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 10.4%. The ex-dividend date of this dividend is Thursday, April 30th. Conagra Brands's dividend payout ratio (DPR) is presently -1,400.00%.

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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