AIA Group Ltd Acquires 313,106 Shares of Conagra Brands $CAG

Key Points

• AIA Group Ltd increased its stake in Conagra Brands by 319.5% in the first quarter, buying 313,106 additional shares and bringing its total holding to 411,099 shares worth about $6.46 million.
• Conagra recently posted mixed quarterly results: EPS slightly beat estimates at $0.47, but revenue missed expectations and the company issued a weak outlook, reinforcing concerns about earnings pressure.
• Analysts remain cautious overall, with several firms lowering price targets after the company’s dividend cut; however, some see the move as constructive because it frees cash for debt reduction and reinvestment.

AIA Group Ltd lifted its holdings in shares of Conagra Brands (NYSE:CAG - Free Report) by 319.5% in the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 411,099 shares of the company's stock after buying an additional 313,106 shares during the period. AIA Group Ltd owned about 0.09% of Conagra Brands worth $6,462,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also modified their holdings of CAG. CYBER HORNET ETFs LLC acquired a new position in shares of Conagra Brands during the second quarter worth $26,000. MUFG Securities EMEA plc acquired a new position in Conagra Brands during the 2nd quarter worth about $29,000. Harbour Investments Inc. lifted its holdings in Conagra Brands by 80.4% during the 4th quarter. Harbour Investments Inc. now owns 1,573 shares of the company's stock worth $27,000 after buying an additional 701 shares during the period. Bell Investment Advisors Inc grew its position in shares of Conagra Brands by 156.9% in the 1st quarter. Bell Investment Advisors Inc now owns 1,685 shares of the company's stock valued at $26,000 after buying an additional 1,029 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd bought a new stake in shares of Conagra Brands in the 3rd quarter valued at about $33,000. 83.75% of the stock is currently owned by institutional investors.

Conagra Brands News Roundup

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

• Positive Sentiment: Barclays raised its price target on Conagra Brands to $17 from $16 and kept an overweight rating, implying meaningful upside from current levels. Barclays raises Conagra price target
• Positive Sentiment: Jefferies reiterated a Hold rating but lifted its target to $14 from $13, and UBS also nudged its target higher to $14, suggesting analysts see some stabilization after the post-earnings reset. Conagra begins strategic reset with dividend cut and higher reinvestment
• Positive Sentiment: Several reports argue that Conagra’s dividend cut could be constructive because it frees up about $335 million annually for debt reduction and brand investment, which may support a longer-term turnaround. Why Conagra’s dividend cut could be the best thing for investors
• Neutral Sentiment: The company’s Q4 results were mixed: adjusted EPS was roughly in line, but revenue and operating profit missed expectations and management issued a weak annual outlook. Reuters: Conagra forecasts annual profit below estimates
• Neutral Sentiment: Management is emphasizing a margin reset, supply-chain improvements, portfolio simplification, and selective reinvestment, which supports the idea of a turnaround but also highlights that the recovery will take time. Q4 earnings call highlights margin reset and cost focus
• Negative Sentiment: The dividend cut and below-estimate profit outlook signal ongoing pressure on earnings and cash flow, which remains a concern for income-focused investors. Seeking Alpha commentary on Conagra dividend cut

Conagra Brands Stock Performance

Shares of CAG stock opened at $14.29 on Monday. The firm has a 50 day moving average of $13.61 and a 200-day moving average of $15.70. The company has a market cap of $6.84 billion, a price-to-earnings ratio of -3.57 and a beta of -0.02. The company has a quick ratio of 0.31, a current ratio of 0.90 and a debt-to-equity ratio of 1.02. Conagra Brands has a 52 week low of $12.53 and a 52 week high of $20.32.

Conagra Brands (NYSE:CAG - Get Free Report) last posted its quarterly earnings results on Wednesday, July 15th. The company reported $0.47 EPS for the quarter, topping analysts' consensus estimates of $0.46 by $0.01. Conagra Brands had a negative net margin of 16.99% and a positive return on equity of 10.44%. The business had revenue of $2.88 billion during the quarter, compared to analysts' expectations of $2.89 billion. During the same period last year, the company posted $0.56 earnings per share. The business's quarterly revenue was up 3.6% on a year-over-year basis. Conagra Brands has set its FY 2027 guidance at 1.400-1.500 EPS. On average, equities analysts forecast that Conagra Brands will post 1.45 earnings per share for the current year.

Conagra Brands Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 2nd. Shareholders of record on Thursday, July 30th will be paid a $0.175 dividend. This represents a $0.70 dividend on an annualized basis and a yield of 4.9%. The ex-dividend date of this dividend is Thursday, July 30th. Conagra Brands's dividend payout ratio (DPR) is -35.00%.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the stock. Deutsche Bank Aktiengesellschaft dropped their price target on shares of Conagra Brands from $14.00 to $12.00 and set a "hold" rating on the stock in a research report on Thursday, June 18th. Royal Bank Of Canada decreased their price objective on shares of Conagra Brands from $16.00 to $14.00 and set a "sector perform" rating for the company in a research report on Thursday. Jefferies Financial Group lowered their target price on shares of Conagra Brands from $15.00 to $13.00 and set a "hold" rating for the company in a research note on Wednesday, May 27th. The Goldman Sachs Group dropped their target price on shares of Conagra Brands from $17.00 to $15.00 and set a "sell" rating on the stock in a report on Thursday, April 2nd. Finally, Stifel Nicolaus cut their price target on shares of Conagra Brands from $17.00 to $15.00 and set a "hold" rating on the stock in a research report on Tuesday, April 21st. One investment analyst has rated the stock with a Buy rating, eleven have assigned a Hold rating and six have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and an average target price of $14.07.

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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