Conagra Brands (NYSE:CAG) Sets New 12-Month Low - What's Next?

Key Points

• Conagra Brands hit a new 52-week low, trading as low as $13.57 after previously closing at $13.67, underscoring continued weakness in the stock.
• Analysts remain cautious: several firms cut price targets, and the consensus rating is “Reduce” with an average price target of $15.80.
• The company recently posted mixed fundamentals, with EPS missing estimates by $0.01 even as revenue topped expectations, while insiders also bought shares and the company maintained a quarterly dividend yielding about 10.3%.

Conagra Brands (NYSE:CAG - Get Free Report) hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $13.57 and last traded at $13.6050, with a volume of 3426082 shares trading hands. The stock had previously closed at $13.67.

Analyst Upgrades and Downgrades

CAG has been the subject of several analyst reports. Wells Fargo & Company lowered their target price on Conagra Brands from $15.00 to $14.00 and set an "underweight" rating for the company in a research note on Thursday, April 2nd. The Goldman Sachs Group decreased their price objective on Conagra Brands from $17.00 to $15.00 and set a "sell" rating for the company in a research note on Thursday, April 2nd. UBS Group lowered their price objective on Conagra Brands from $20.00 to $16.00 and set a "neutral" rating for the company in a research report on Thursday, April 2nd. Stifel Nicolaus cut their target price on shares of Conagra Brands from $17.00 to $15.00 and set a "hold" rating on the stock in a research note on Tuesday, April 21st. Finally, BTIG Research started coverage on shares of Conagra Brands in a report on Monday, April 13th. They issued a "neutral" rating on the stock. One research analyst has rated the stock with a Buy rating, twelve have issued a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Reduce" and a consensus price target of $15.80.

Conagra Brands Price Performance

The stock has a fifty day simple moving average of $15.37 and a 200-day simple moving average of $16.94. The company has a market capitalization of $6.48 billion and a PE ratio of -135.44. The company has a current ratio of 0.90, a quick ratio of 0.30 and a debt-to-equity ratio of 0.79.

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

Conagra Brands Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 3rd. Stockholders of record on Thursday, April 30th will be issued a $0.35 dividend. The ex-dividend date is Thursday, April 30th. This represents a $1.40 annualized dividend and a dividend yield of 10.3%. Conagra Brands's dividend payout ratio is presently -1,400.00%.

Insider Activity

In other Conagra Brands news, Director John J. Mulligan bought 17,500 shares of the business's stock in a transaction dated Tuesday, April 14th. The shares were 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. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Richard H. Lenny acquired 25,000 shares of the company's stock in a transaction on Tuesday, April 14th. The stock was acquired at an average price of $14.34 per share, for a total transaction of $358,500.00. Following the completion of the purchase, the director owned 229,340 shares of the company's stock, valued at $3,288,735.60. This trade represents a 12.23% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 0.57% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of CAG. CYBER HORNET ETFs LLC acquired a new stake in shares of Conagra Brands in the 2nd quarter worth $26,000. MUFG Securities EMEA plc acquired a new position in shares of Conagra Brands during the second quarter worth about $29,000. Harbour Investments Inc. increased its stake in shares of Conagra Brands by 80.4% during the fourth quarter. Harbour Investments Inc. now owns 1,573 shares of the company's stock worth $27,000 after acquiring an additional 701 shares during the period. Bell Investment Advisors Inc raised its holdings in Conagra Brands by 156.9% during the first quarter. Bell Investment Advisors Inc now owns 1,685 shares of the company's stock worth $26,000 after purchasing an additional 1,029 shares in the last quarter. Finally, Spire Wealth Management lifted its position in Conagra Brands by 249.0% in the third quarter. Spire Wealth Management now owns 1,724 shares of the company's stock valued at $32,000 after purchasing an additional 1,230 shares during the period. Institutional investors and hedge funds own 83.75% of the company's stock.

Conagra Brands Company Profile

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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