California State Teachers Retirement System Acquires 106,250 Shares of Conagra Brands $CAG

Key Points

• California State Teachers Retirement System increased its Conagra Brands stake by 23.6%, adding 106,250 shares to own 557,284 shares valued at approximately $8.76 million. Institutional investors collectively own 83.75% of CAG.
• Conagra reported quarterly EPS of $0.47, slightly above expectations, while revenue reached $2.88 billion, up 3.6% year over year. However, net margin remained negative at 16.99%, and EPS declined from $0.56 in the prior-year period.
• The company’s quarterly dividend is now $0.175 per share, or $0.70 annualized, yielding about 4.7%. Analysts remain cautious, with an average “Reduce” rating and a $14.07 price target versus the stock’s $15.00 opening price.

California State Teachers Retirement System boosted its holdings in Conagra Brands (NYSE:CAG - Free Report) by 23.6% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 557,284 shares of the company's stock after purchasing an additional 106,250 shares during the period. California State Teachers Retirement System owned approximately 0.12% of Conagra Brands worth $8,761,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the business. State Street Corp increased 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 valued at $536,363,000 after acquiring an additional 588,435 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of Conagra Brands by 9.7% during the first quarter. Dimensional Fund Advisors LP now owns 19,323,789 shares of the company's stock worth $303,771,000 after purchasing an additional 1,701,624 shares during the period. Invesco Ltd. grew its stake in shares of Conagra Brands by 13.3% in the fourth quarter. Invesco Ltd. now owns 17,667,780 shares of the company's stock worth $305,829,000 after purchasing an additional 2,079,903 shares during the last quarter. Morgan Stanley raised its position in Conagra Brands by 18.5% during 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 last quarter. Finally, Ameriprise Financial Inc. raised its position in Conagra Brands by 19.6% during 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 last quarter. 83.75% of the stock is currently owned by hedge funds and other institutional investors.

Conagra Brands Stock Performance

Shares of CAG stock opened at $15.00 on Wednesday. The company has a 50 day moving average price of $13.91 and a 200-day moving average price of $15.53. Conagra Brands has a 52 week low of $12.53 and a 52 week high of $20.32. The firm has a market capitalization of $7.18 billion, a PE ratio of -3.75 and a beta of -0.03. 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 (NYSE:CAG - Get Free Report) last announced its earnings results on Wednesday, July 15th. The company reported $0.47 EPS 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 analysts' expectations of $2.89 billion. Conagra Brands had a negative net margin of 16.99% and a positive return on equity of 10.44%. The firm's revenue was up 3.6% on a year-over-year basis. During the same period in the prior year, the company earned $0.56 earnings per share. Conagra Brands has set its FY 2027 guidance at 1.400-1.500 EPS. As a group, equities research analysts expect that Conagra Brands will post 1.45 earnings per share for the current year.

Conagra Brands Cuts Dividend

The firm 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 annualized dividend and a yield of 4.7%. The ex-dividend date is Thursday, July 30th. Conagra Brands's payout ratio is currently -17.50%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on CAG shares. Jefferies Financial Group cut their target price on shares of Conagra Brands from $15.00 to $13.00 and set a "hold" rating on the stock in a research note on Wednesday, May 27th. Stifel Nicolaus lowered their price objective on shares of Conagra Brands from $17.00 to $15.00 and set a "hold" rating for the company in a report on Tuesday, April 21st. Evercore cut their price objective on Conagra Brands from $18.00 to $13.00 in a research report on Wednesday, June 10th. Royal Bank Of Canada reduced their target price on Conagra Brands from $16.00 to $14.00 and set a "sector perform" rating on the stock in a report on Thursday, July 16th. Finally, Morgan Stanley lowered their target price on Conagra Brands from $15.00 to $13.00 and set an "equal weight" rating for the company in a research note on Friday, June 5th. One research analyst has rated the stock with a Buy rating, eleven have issued a Hold rating and six have issued a Sell rating to the stock. According to MarketBeat, Conagra Brands presently 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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