Arrowstreet Capital Limited Partnership Trims Holdings in Conagra Brands $CAG

Key Points

• Arrowstreet Capital cut its Conagra Brands stake by 29.6% in the first quarter, selling about 3.08 million shares and leaving it with 7.32 million shares valued at roughly $115.1 million.
• Conagra posted better-than-expected quarterly earnings of $0.47 per share versus estimates of $0.46, while revenue came in at $2.88 billion and rose 3.6% year over year.
• The company also announced a reduced quarterly dividend of $0.175 per share, which implies an annual yield of about 4.7%; meanwhile, analysts remain cautious with an average rating of “Reduce” and a consensus price target of $14.07.

Arrowstreet Capital Limited Partnership decreased its holdings in shares of Conagra Brands (NYSE:CAG - Free Report) by 29.6% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 7,323,001 shares of the company's stock after selling 3,081,019 shares during the period. Arrowstreet Capital Limited Partnership owned about 1.53% of Conagra Brands worth $115,118,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. VIRGINIA RETIREMENT SYSTEMS ET Al increased its position in shares of Conagra Brands by 24.8% during the fourth quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 661,029 shares of the company's stock valued at $11,442,000 after purchasing an additional 131,287 shares during the period. Goldman Sachs Group Inc. increased its position in Conagra Brands by 23.7% in the 4th quarter. Goldman Sachs Group Inc. now owns 8,125,901 shares of the company's stock valued at $140,659,000 after acquiring an additional 1,554,725 shares in the last quarter. Leonteq Securities AG bought a new position in shares of Conagra Brands in the fourth quarter worth about $2,415,000. Sound Income Strategies LLC raised its stake in shares of Conagra Brands by 153.4% in the fourth quarter. Sound Income Strategies LLC now owns 406,666 shares of the company's stock worth $6,897,000 after acquiring an additional 246,178 shares during the last quarter. Finally, Marathon Trading Investment Management LLC acquired a new stake in shares of Conagra Brands in the 4th quarter valued at $1,367,000. 83.75% of the stock is owned by institutional investors and hedge funds.

Conagra Brands Stock Performance

Shares of CAG stock opened at $14.76 on Friday. The business's 50 day simple moving average is $13.69 and its 200 day simple moving average is $15.61. Conagra Brands has a one year low of $12.53 and a one year high of $20.32. The stock has a market capitalization of $7.07 billion, a PE ratio of -3.69 and a beta of -0.02. The company has a debt-to-equity ratio of 1.02, a current ratio of 0.90 and a quick ratio of 0.31.

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

Conagra Brands Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 2nd. Investors of record on Thursday, July 30th will be given a $0.175 dividend. This represents a $0.70 dividend on an annualized basis and a yield of 4.7%. The ex-dividend date of this dividend is Thursday, July 30th. Conagra Brands's dividend payout ratio is presently -35.00%.

Analyst Ratings Changes

Several research analysts have recently issued reports on the stock. Zacks Research lowered shares of Conagra Brands from a "hold" rating to a "strong sell" rating in a research note on Monday, May 11th. Deutsche Bank Aktiengesellschaft lowered their target price on Conagra Brands from $14.00 to $12.00 and set a "hold" rating for the company in a report on Thursday, June 18th. Weiss Ratings downgraded Conagra Brands from a "sell (d+)" rating to a "sell (d)" rating in a research report on Thursday, June 25th. BTIG Research began coverage on shares of Conagra Brands in a report on Monday, April 13th. They issued a "neutral" rating on the stock. Finally, Jefferies Financial Group cut 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. One equities research analyst has rated the stock with a Buy rating, eleven have given a Hold rating and six have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Reduce" and an average price target of $14.07.

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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