Conagra Brands (NYSE:CAG) Sets New 52-Week Low - Should You Sell?

Key Points

• Conagra Brands' stock hit a new 52-week low at $18.46, with a trading volume of nearly 10 million shares, indicating a decline from its previous closing price of $19.03.
• Several analysts have downgraded the stock, with target prices falling as low as $20.00 from multiple firms, and only one analyst rating it a "strong buy," suggesting a cautious outlook.
• The company reported earnings per share of $0.56 for the last quarter, missing expectations, with a significant 4.3% decline in revenue year-over-year.

Conagra Brands (NYSE:CAG - Get Free Report) hit a new 52-week low during trading on Wednesday . The stock traded as low as $18.56 and last traded at $18.46, with a volume of 9971593 shares. The stock had previously closed at $19.03.

Analysts Set New Price Targets

Several brokerages have recently commented on CAG. Royal Bank Of Canada reduced their target price on Conagra Brands from $25.00 to $22.00 and set a "sector perform" rating for the company in a research note on Friday, July 11th. The Goldman Sachs Group downgraded Conagra Brands from a "neutral" rating to a "sell" rating and reduced their target price for the stock from $26.00 to $21.00 in a research note on Monday, June 9th. UBS Group dropped their price target on Conagra Brands from $21.00 to $20.00 and set a "neutral" rating for the company in a report on Friday, July 11th. JPMorgan Chase & Co. dropped their price target on Conagra Brands from $26.00 to $25.00 and set a "neutral" rating for the company in a report on Tuesday, May 6th. Finally, Bank of America cut Conagra Brands from a "neutral" rating to an "underperform" rating and dropped their price target for the stock from $27.00 to $20.00 in a report on Thursday, June 12th. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating, one has issued a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat, Conagra Brands presently has a consensus rating of "Hold" and an average price target of $22.58.

Conagra Brands Price Performance

The company's 50-day moving average is $20.87 and its two-hundred day moving average is $23.69. The firm has a market cap of $8.83 billion, a P/E ratio of 7.73, a PEG ratio of 1.77 and a beta of 0.11. The company has a debt-to-equity ratio of 0.70, a current ratio of 0.71 and a quick ratio of 0.24.

Conagra Brands (NYSE:CAG - Get Free Report) last released its earnings results on Thursday, July 10th. The company reported $0.56 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.61 by ($0.05). The business had revenue of $2,781,800 billion during the quarter, compared to the consensus estimate of $2.88 billion. Conagra Brands had a net margin of 9.92% and a return on equity of 12.52%. The business's revenue was down 4.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.61 EPS. Sell-side analysts anticipate that Conagra Brands will post 2.35 EPS for the current fiscal year.

Conagra Brands Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 28th. Investors of record on Wednesday, July 30th will be given a dividend of $0.35 per share. The ex-dividend date is Wednesday, July 30th. This represents a $1.40 dividend on an annualized basis and a yield of 7.6%. Conagra Brands's payout ratio is currently 58.58%.

Institutional Investors Weigh In On Conagra Brands

Hedge funds and other institutional investors have recently bought and sold shares of the company. Bessemer Group Inc. grew its position in shares of Conagra Brands by 0.6% in the 4th quarter. Bessemer Group Inc. now owns 78,038 shares of the company's stock valued at $2,166,000 after buying an additional 429 shares during the last quarter. Beacon Investment Advisory Services Inc. boosted its stake in Conagra Brands by 3.2% during the first quarter. Beacon Investment Advisory Services Inc. now owns 14,548 shares of the company's stock worth $388,000 after acquiring an additional 450 shares in the last quarter. Capital Advisors Ltd. LLC grew its stake in Conagra Brands by 82.3% in the first quarter. Capital Advisors Ltd. LLC now owns 1,001 shares of the company's stock valued at $27,000 after acquiring an additional 452 shares during the period. Summit Financial Wealth Advisors LLC increased its stake in Conagra Brands by 1.3% during the 4th quarter. Summit Financial Wealth Advisors LLC now owns 40,455 shares of the company's stock valued at $1,030,000 after purchasing an additional 500 shares in the last quarter. Finally, Hexagon Capital Partners LLC raised its holdings in shares of Conagra Brands by 33.6% in the 1st quarter. Hexagon Capital Partners LLC now owns 2,009 shares of the company's stock worth $54,000 after acquiring an additional 505 shares during the last quarter. Institutional investors own 83.75% of the company's stock.

Conagra Brands Company Profile

Conagra Brands, Inc, together with its subsidiaries, operates as a consumer packaged goods food company primarily in the United States. The company operates through Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments. The Grocery & Snacks segment primarily offers shelf stable food products through various retail channels.