Conagra Brands (NYSE:CAG) Sets New 12-Month Low - Here's Why

Key Points

• Conagra Brands recently hit a new 52-week low at $18.18, with analysts forecasting a target price shift among major firms like Morgan Stanley and Goldman Sachs.
• The company reported a missed earnings estimate for the most recent quarter, earning $0.56 per share against the expected $0.61, and also experienced a year-over-year revenue decline of 4.3%.
• Conagra announced a quarterly dividend of $0.35 per share, yielding 7.7%, indicating confidence in returning value to shareholders despite the recent stock performance.

Conagra Brands (NYSE:CAG - Get Free Report) reached a new 52-week low on Tuesday . The company traded as low as $18.18 and last traded at $18.28, with a volume of 1626496 shares. The stock had previously closed at $18.32.

Wall Street Analysts Forecast Growth

CAG has been the topic of a number of recent analyst reports. Morgan Stanley decreased their target price on shares of Conagra Brands from $22.00 to $20.00 and set an "equal weight" rating on the stock in a research report on Friday, July 11th. Stifel Nicolaus decreased their price objective on shares of Conagra Brands from $26.00 to $21.00 and set a "hold" rating on the stock in a report on Friday, July 11th. Sanford C. Bernstein set a $21.00 target price on shares of Conagra Brands and gave the company a "market perform" rating in a report on Friday, July 11th. The Goldman Sachs Group cut Conagra Brands from a "neutral" rating to a "sell" rating and decreased their price target for the stock from $26.00 to $21.00 in a research note on Monday, June 9th. Finally, Bank of America lowered Conagra Brands from a "neutral" rating to an "underperform" rating and lowered their price target for the stock from $27.00 to $20.00 in a research report on Thursday, June 12th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $22.17.

Conagra Brands Trading Down 0.8%

The firm has a market capitalization of $8.70 billion, a PE ratio of 7.60, a PEG ratio of 1.77 and a beta of 0.07. The company's 50-day moving average price is $19.08 and its 200-day moving average price is $22.02. The company has a debt-to-equity ratio of 0.70, a quick ratio of 0.24 and a current ratio of 0.71.

Conagra Brands (NYSE:CAG - Get Free Report) last posted its quarterly earnings results on Thursday, July 10th. The company reported $0.56 earnings per share for the quarter, missing analysts' consensus estimates of $0.61 by ($0.05). The business had revenue of $2.78 billion during the quarter, compared to analyst estimates of $2.88 billion. Conagra Brands had a net margin of 9.92% and a return on equity of 12.52%. The firm's quarterly revenue was down 4.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.61 earnings per share. On average, sell-side analysts expect that Conagra Brands will post 2.35 earnings per share for the current year.

Conagra Brands Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, August 28th. Stockholders of record on Wednesday, July 30th were given a dividend of $0.35 per share. The ex-dividend date was Wednesday, July 30th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 7.7%. Conagra Brands's payout ratio is 58.58%.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Victory Capital Management Inc. boosted its holdings in shares of Conagra Brands by 11.9% in the first quarter. Victory Capital Management Inc. now owns 842,094 shares of the company's stock valued at $22,459,000 after acquiring an additional 89,445 shares during the period. Impact Partnership Wealth LLC purchased a new position in shares of Conagra Brands during the first quarter worth about $396,000. OneDigital Investment Advisors LLC increased its position in Conagra Brands by 42.1% in the 1st quarter. OneDigital Investment Advisors LLC now owns 10,821 shares of the company's stock valued at $289,000 after acquiring an additional 3,207 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank lifted its position in Conagra Brands by 6.8% during the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 259,697 shares of the company's stock worth $6,926,000 after acquiring an additional 16,546 shares during the period. Finally, Wealth Enhancement Advisory Services LLC lifted its position in Conagra Brands by 269.0% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 207,417 shares of the company's stock worth $5,532,000 after acquiring an additional 151,209 shares during the period. Institutional investors and hedge funds 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.

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