Conagra Brands (NYSE:CAG) Shares Up 4.5% - Time to Buy?

Key Points

• Conagra Brands shares rose 4.5% on Monday, trading as high as $14.50 after closing at $13.83 the previous session. Trading volume was far below normal, with about 1.6 million shares changing hands versus an average of 15.8 million.
• Analyst sentiment remains cautious, with multiple firms cutting price targets recently. The stock’s consensus rating is “Reduce,” and the average target price is $14.00.
• Insider buying provided a positive signal, as directors Richard H. Lenny and John J. Mulligan both bought shares in April at around $14.3 per share. Meanwhile, institutional ownership remains high at 83.75%.

Shares of Conagra Brands (NYSE:CAG - Get Free Report) rose 4.5% on Monday . The stock traded as high as $14.50 and last traded at $14.4470. 1,601,085 shares changed hands during trading, a decline of 90% from the average session volume of 15,799,813 shares. The stock had previously closed at $13.83.

Wall Street Analyst Weigh In

CAG has been the topic of a number of research analyst reports. TD Cowen reduced their price target on shares of Conagra Brands from $18.00 to $14.00 and set a "hold" rating on the stock in a research note on Wednesday, March 25th. Deutsche Bank Aktiengesellschaft lowered their price objective on shares of Conagra Brands from $14.00 to $12.00 and set a "hold" rating for the company in a research report on Thursday, June 18th. Royal Bank Of Canada dropped their target price on shares of Conagra Brands from $17.00 to $16.00 and set a "sector perform" rating for the company in a report on Thursday, June 25th. Evercore cut their target price on Conagra Brands from $18.00 to $13.00 in a research report on Wednesday, June 10th. Finally, UBS Group decreased their price target on Conagra Brands from $16.00 to $13.00 and set a "neutral" rating on the stock in a research note on Tuesday, June 2nd. One investment analyst has rated the stock with a Buy rating, eleven have issued a Hold rating and six have given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Reduce" and an average target price of $14.00.

Conagra Brands Price Performance

The firm has a market cap of $6.89 billion, a price-to-earnings ratio of -143.89 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. The company's 50-day moving average price is $13.60 and its 200-day moving average price is $15.80.

Insider Activity at Conagra Brands

In other Conagra Brands news, Director Richard H. Lenny bought 25,000 shares of Conagra Brands stock in a transaction on Tuesday, April 14th. The shares were bought at an average cost of $14.34 per share, for a total transaction of $358,500.00. Following the acquisition, the director directly owned 229,340 shares in the company, valued at $3,288,735.60. This represents a 12.23% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director John J. Mulligan purchased 17,500 shares of the firm's stock in a transaction 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 transaction, the director directly owned 20,728 shares in the company, valued at $296,617.68. This trade represents a 542.13% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.57% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Bell Investment Advisors Inc increased its holdings in Conagra Brands by 156.9% during the 1st 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 during the period. CYBER HORNET ETFs LLC purchased a new position in shares of Conagra Brands in the 2nd quarter valued at about $26,000. Harbour Investments Inc. boosted its stake in shares of Conagra Brands by 80.4% in the 4th quarter. Harbour Investments Inc. now owns 1,573 shares of the company's stock valued at $27,000 after buying an additional 701 shares during the period. MUFG Securities EMEA plc acquired a new position in shares of Conagra Brands during the second quarter worth about $29,000. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of Conagra Brands during the third quarter worth about $33,000. 83.75% of the stock is currently owned by hedge funds and other institutional investors.

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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