Conagra Brands (NYSE:CAG) Hits New 52-Week Low Following Analyst Downgrade

Key Points

• Conagra Brands hit a new 52-week low after BNP Paribas Exane cut its price target to $14 from $16 while keeping a neutral rating. The stock fell as low as $13.14 and was down about 3.3% on the day.
• Several other analysts have also lowered their targets recently, and the overall Street view remains cautious with an average rating of "Reduce" and an average price target of $15.60.
• Despite the weak stock performance, two Conagra directors bought shares in April, and the company said its quarterly dividend will be $0.35 per share, implying a high annualized yield of about 10.5%.

Conagra Brands (NYSE:CAG - Get Free Report)'s share price hit a new 52-week low on Thursday after BNP Paribas Exane lowered their price target on the stock from $16.00 to $14.00. BNP Paribas Exane currently has a neutral rating on the stock. Conagra Brands traded as low as $13.14 and last traded at $13.2850, with a volume of 3384341 shares. The stock had previously closed at $13.76.

A number of other research analysts have also recently commented on the company. Morgan Stanley reduced their price objective on Conagra Brands from $17.00 to $15.00 and set an "equal weight" rating on the stock in a research note on Thursday, April 23rd. Stifel Nicolaus lowered their target price on Conagra Brands from $17.00 to $15.00 and set a "hold" rating for the company in a research note on Tuesday, April 21st. Barclays dropped their target price on Conagra Brands from $21.00 to $18.00 and set an "overweight" rating on the stock in a report on Thursday, April 2nd. JPMorgan Chase & Co. reduced their price target on Conagra Brands from $19.00 to $17.00 and set a "neutral" rating on the stock in a research report on Friday, March 20th. Finally, The Goldman Sachs Group decreased their price target on Conagra Brands from $17.00 to $15.00 and set a "sell" rating for the company in a report on Thursday, April 2nd. One equities research analyst has rated the stock with a Buy rating, twelve have given a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Reduce" and an average price target of $15.60.

Insider Transactions at Conagra Brands

In other Conagra Brands news, Director Richard H. Lenny bought 25,000 shares of the company's stock in a transaction dated Tuesday, April 14th. The shares were acquired at an average cost of $14.34 per share, with a total value of $358,500.00. Following the completion of the transaction, the director owned 229,340 shares in the company, valued at $3,288,735.60. The trade was a 12.23% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John J. Mulligan purchased 17,500 shares of Conagra Brands stock in a transaction that occurred on Tuesday, April 14th. The stock was acquired at an average cost of $14.31 per share, with a total value of $250,425.00. Following the acquisition, the director directly owned 20,728 shares of the company's stock, valued at $296,617.68. The trade was a 542.13% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.57% of the company's stock.

Hedge Funds Weigh In On Conagra Brands

A number of institutional investors have recently made changes to their positions in the business. Western Wealth Management LLC purchased a new position in shares of Conagra Brands during the 1st quarter valued at approximately $238,000. Kentucky Retirement Systems increased its stake in shares of Conagra Brands by 16.6% in the first quarter. Kentucky Retirement Systems now owns 34,831 shares of the company's stock worth $548,000 after buying an additional 4,951 shares during the last quarter. Janus Henderson Group PLC raised its holdings in Conagra Brands by 3.7% in the first quarter. Janus Henderson Group PLC now owns 219,654 shares of the company's stock valued at $3,450,000 after acquiring an additional 7,762 shares in the last quarter. Bull Harbor Capital LLC acquired a new stake in Conagra Brands in the first quarter valued at $158,000. Finally, Parvin Asset Management LLC boosted its stake in Conagra Brands by 278.6% during the 1st quarter. Parvin Asset Management LLC now owns 14,065 shares of the company's stock valued at $221,000 after acquiring an additional 10,350 shares during the last quarter. 83.75% of the stock is owned by institutional investors and hedge funds.

Conagra Brands Stock Down 3.3%

The stock has a market capitalization of $6.37 billion and a P/E ratio of -132.99. The company has a current ratio of 0.90, a quick ratio of 0.30 and a debt-to-equity ratio of 0.79. The stock's 50 day simple moving average is $14.96 and its 200 day simple moving average is $16.82.

Conagra Brands (NYSE:CAG - Get Free Report) last released its earnings results 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 positive return on equity of 10.15% and a negative net margin of 0.39%.The company had revenue of $2.79 billion during the quarter, compared to the consensus estimate of $2.76 billion. During the same period in the previous year, the firm posted $0.51 EPS. Conagra Brands's revenue for the quarter was down 1.9% on a year-over-year basis. As a group, research analysts predict that Conagra Brands will post 1.7 EPS for the current fiscal year.

Conagra Brands Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 3rd. Shareholders of record on Thursday, April 30th will be paid a dividend of $0.35 per share. The ex-dividend date is Thursday, April 30th. This represents a $1.40 annualized dividend and a yield of 10.5%. Conagra Brands's dividend payout ratio 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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