Conagra Brands (NYSE:CAG) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Conagra Brands from hold to strong sell, adding to a broadly cautious analyst view on the stock.
• Other firms have also cut ratings and price targets recently, with the current consensus rating at Reduce and a consensus price target of $15.80, versus a Monday opening price of $14.00.
• Conagra’s latest quarterly results missed EPS estimates by a penny, with revenue slightly ahead of expectations but down 1.9% year over year; meanwhile, two directors bought shares in April, signaling insider confidence.

Conagra Brands (NYSE:CAG - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other equities analysts also recently commented on the company. Stifel Nicolaus decreased their target price on Conagra Brands from $17.00 to $15.00 and set a "hold" rating for the company in a report on Tuesday, April 21st. Deutsche Bank Aktiengesellschaft decreased their price objective on Conagra Brands from $18.00 to $14.00 and set a "hold" rating for the company in a report on Monday, March 30th. Sanford C. Bernstein decreased their price objective on Conagra Brands from $18.00 to $16.00 and set a "market perform" rating for the company in a report on Thursday, April 2nd. BNP Paribas Exane downgraded Conagra Brands from an "outperform" rating to a "neutral" rating and decreased their price objective for the stock from $19.00 to $16.00 in a report on Thursday, April 9th. Finally, Wells Fargo & Company decreased their price objective on Conagra Brands from $15.00 to $14.00 and set an "underweight" rating for the company in a report on Thursday, April 2nd. One analyst has rated the stock with a Buy rating, twelve have assigned a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus price target of $15.80.

Conagra Brands Stock Performance

NYSE:CAG opened at $14.00 on Monday. The firm has a market cap of $6.70 billion and a PE ratio of -139.94. Conagra Brands has a fifty-two week low of $13.60 and a fifty-two week high of $23.37. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.30 and a current ratio of 0.90. The business has a 50 day moving average price of $15.57 and a 200-day moving average price of $17.00.

Conagra Brands (NYSE:CAG - Get Free Report) last announced its earnings results 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 for the quarter, compared to the consensus estimate of $2.76 billion. Conagra Brands had a negative net margin of 0.39% and a positive return on equity of 10.15%. Conagra Brands's revenue was down 1.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.51 EPS. Equities research analysts predict that Conagra Brands will post 1.7 earnings per share for the current year.

Insider Buying and Selling at Conagra Brands

In other Conagra Brands news, Director Richard H. Lenny acquired 25,000 shares of the company's stock in a transaction that occurred on Tuesday, April 14th. The shares were bought at an average cost of $14.34 per share, with a total value of $358,500.00. Following the completion of the transaction, the director directly owned 229,340 shares of the company's stock, valued at approximately $3,288,735.60. This represents a 12.23% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director John J. Mulligan acquired 17,500 shares of the company's stock in a transaction that occurred on Tuesday, April 14th. The shares were acquired at an average cost of $14.31 per share, for a total transaction of $250,425.00. Following the completion of the transaction, 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 ownership of the stock. 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

Several institutional investors and hedge funds have recently bought and sold shares of CAG. Bell Investment Advisors Inc boosted its position in Conagra Brands by 156.9% in 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 during the last quarter. CYBER HORNET ETFs LLC purchased a new position in Conagra Brands in the second quarter worth about $26,000. Harbour Investments Inc. boosted its position in Conagra Brands by 80.4% in the fourth quarter. Harbour Investments Inc. now owns 1,573 shares of the company's stock worth $27,000 after purchasing an additional 701 shares during the last quarter. MUFG Securities EMEA plc purchased a new position in Conagra Brands in the second quarter worth about $29,000. Finally, Spire Wealth Management boosted 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 worth $32,000 after purchasing an additional 1,230 shares during the last quarter. 83.75% of the stock is 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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