Conagra Brands (NYSE:CAG) Shares Gap Down - Should You Sell?

Key Points

• Conagra Brands shares gapped down after the company’s latest update, with the stock opening below the prior close even though it later recovered some ground during trading.
• The company beat fiscal Q4 EPS expectations by a penny, but investors focused on weaker forward guidance: FY2027 EPS outlook of 1.40–1.50 came in below consensus and the company also swung to a quarterly loss amid higher commodity, protein, and tariff-related costs.
• Conagra cut its annual dividend in half, a notable negative for income investors, while analysts have become more cautious overall with a consensus rating of “Reduce” and a target price around $14.

Conagra Brands (NYSE:CAG - Get Free Report) shares gapped down prior to trading on Wednesday . The stock had previously closed at $14.15, but opened at $13.69. Conagra Brands shares last traded at $14.1280, with a volume of 6,238,128 shares traded.

Conagra Brands News Summary

Here are the key news stories impacting Conagra Brands this week:

• Positive Sentiment: Conagra beat Q4 EPS expectations, posting $0.47 per share versus the $0.46 consensus, which shows earnings were slightly better than feared. Article title
• Positive Sentiment: The company reaffirmed its long dividend history by announcing a quarterly payout, though the size was reset lower. Article title
• Neutral Sentiment: Investors are also digesting a detailed earnings readout and conference-call materials that may provide more color on margins, costs, and the turnaround plan. Article title
• Negative Sentiment: Conagra cut its annual dividend in half, a major red flag for income investors and a sign management sees less support from cash flow than before. Article title
• Negative Sentiment: FY2027 EPS guidance of 1.40–1.50 came in below the 1.61 consensus, reinforcing worries about weaker profitability ahead. Article title
• Negative Sentiment: The company swung to a quarterly loss and cited pressure from higher commodity, protein, and tariff-related costs, which could continue to weigh on margins. Article title

Analysts Set New Price Targets

Several brokerages recently weighed in on CAG. BTIG Research started coverage on Conagra Brands in a research note on Monday, April 13th. They set a "neutral" rating for the company. Barclays dropped their price target on shares of Conagra Brands from $18.00 to $16.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 8th. JPMorgan Chase & Co. reduced their price objective on shares of Conagra Brands from $17.00 to $14.00 and set a "neutral" rating for the company in a research report on Friday, June 5th. UBS Group lowered their price objective on shares of Conagra Brands from $16.00 to $13.00 and set a "neutral" rating on the stock in a research note on Tuesday, June 2nd. Finally, BNP Paribas Exane dropped their target price on shares of Conagra Brands from $16.00 to $14.00 and set a "neutral" rating on the stock in a report on Thursday, May 21st. One equities research analyst has rated the stock with a Buy rating, eleven have given a Hold rating and six have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus target price of $14.00.

Conagra Brands Stock Up 0.8%

The business has a 50-day moving average price of $13.60 and a 200-day moving average price of $15.76. The company has a market capitalization of $6.82 billion, a price-to-earnings ratio of -142.70 and a beta of -0.02. The company has a quick ratio of 0.30, a current ratio of 0.90 and a debt-to-equity ratio of 0.79.

Conagra Brands (NYSE:CAG - Get Free Report) last released its quarterly earnings results on Wednesday, July 15th. The company reported $0.47 earnings per share for the quarter, beating analysts' consensus estimates of $0.46 by $0.01. The business had revenue of $2.88 billion during the quarter, compared to analyst estimates of $2.89 billion. Conagra Brands had a positive return on equity of 10.15% and a negative net margin of 0.39%.Conagra Brands's revenue for the quarter was up 3.6% on a year-over-year basis. During the same quarter last year, the company posted $0.56 EPS. Conagra Brands has set its FY 2027 guidance at 1.400-1.500 EPS. As a group, equities analysts anticipate that Conagra Brands will post 1.7 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Conagra Brands

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. State Street Corp boosted its position in shares of Conagra Brands by 2.3% in the second quarter. State Street Corp now owns 26,202,392 shares of the company's stock worth $536,363,000 after buying an additional 588,435 shares during the period. Dimensional Fund Advisors LP boosted its position in Conagra Brands by 9.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 19,323,789 shares of the company's stock worth $303,771,000 after acquiring an additional 1,701,624 shares during the period. Invesco Ltd. grew its stake in Conagra Brands by 13.3% during the 4th quarter. Invesco Ltd. now owns 17,667,780 shares of the company's stock valued at $305,829,000 after acquiring an additional 2,079,903 shares in the last quarter. Morgan Stanley increased its holdings in shares of Conagra Brands by 18.5% in the 4th quarter. Morgan Stanley now owns 15,229,557 shares of the company's stock valued at $263,624,000 after purchasing an additional 2,376,823 shares during the period. Finally, Ameriprise Financial Inc. increased its holdings in shares of Conagra Brands by 19.6% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,130,671 shares of the company's stock valued at $222,113,000 after purchasing an additional 1,984,873 shares during the period. 83.75% of the stock is currently owned by hedge funds and other institutional investors.

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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