Dupree Financial Group LLC Invests $2.88 Million in Conagra Brands $CAG

Key Points

• Dupree Financial Group opened a new position in Conagra Brands (NYSE:CAG) in Q4, buying 166,296 shares worth roughly $2.88 million.
• Conagra declared a quarterly dividend of $0.35 (ex-dividend April 30, payable June 3), implying an annualized yield of about 9.9%, despite a negative payout ratio that reflects weak earnings.
• Analyst sentiment has weakened—price targets were cut and the stock carries a MarketBeat consensus of "Reduce" with an average target of $15.80—while CAG trades near its 12‑month low (~$14) after a slight quarterly earnings miss ($0.39 vs. $0.40).

Dupree Financial Group LLC purchased a new position in shares of Conagra Brands (NYSE:CAG - Free Report) in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 166,296 shares of the company's stock, valued at approximately $2,879,000.

A number of other hedge funds have also modified their holdings of the business. State Street Corp grew its holdings in shares of Conagra Brands by 2.3% during the 2nd quarter. State Street Corp now owns 26,202,392 shares of the company's stock worth $536,363,000 after purchasing an additional 588,435 shares during the period. Invesco Ltd. grew its holdings in shares of Conagra Brands by 25.6% during the 3rd quarter. Invesco Ltd. now owns 15,587,877 shares of the company's stock worth $285,414,000 after purchasing an additional 3,173,767 shares during the period. Dimensional Fund Advisors LP grew its holdings in shares of Conagra Brands by 21.7% during the 3rd quarter. Dimensional Fund Advisors LP now owns 14,674,084 shares of the company's stock worth $268,672,000 after purchasing an additional 2,618,647 shares during the period. Ameriprise Financial Inc. grew its holdings in shares of Conagra Brands by 19.6% during the 3rd quarter. Ameriprise Financial Inc. now owns 12,130,671 shares of the company's stock worth $222,113,000 after purchasing an additional 1,984,873 shares during the period. Finally, Two Sigma Investments LP grew its holdings in shares of Conagra Brands by 239.6% during the 3rd quarter. Two Sigma Investments LP now owns 8,347,163 shares of the company's stock worth $152,837,000 after purchasing an additional 5,889,542 shares during the period. 83.75% of the stock is currently owned by hedge funds and other institutional investors.

Conagra Brands Stock Performance

Shares of Conagra Brands stock opened at $14.17 on Friday. The business has a 50-day moving average of $16.53 and a 200 day moving average of $17.33. Conagra Brands has a 12 month low of $14.04 and a 12 month high of $25.12. The stock has a market capitalization of $6.78 billion, a price-to-earnings ratio of -141.64 and a beta of 0.04. The company has a debt-to-equity ratio of 0.79, a current ratio of 0.90 and a quick ratio of 0.30.

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). Conagra Brands had a negative net margin of 0.39% and a positive return on equity of 10.15%. The firm had revenue of $2.79 billion for the quarter, compared to analysts' expectations of $2.76 billion. During the same quarter last year, the business earned $0.51 earnings per share. The business's revenue was down 1.9% compared to the same quarter last year. As a group, sell-side analysts forecast that Conagra Brands will post 1.7 earnings per share for the current year.

Conagra Brands Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 3rd. Shareholders of record on Thursday, April 30th will be given a $0.35 dividend. The ex-dividend date of this dividend is Thursday, April 30th. This represents a $1.40 dividend on an annualized basis and a yield of 9.9%. Conagra Brands's dividend payout ratio (DPR) is currently -1,400.00%.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on CAG. Jefferies Financial Group lowered their price target on Conagra Brands from $16.00 to $15.00 and set a "hold" rating for the company in a report on Monday, March 30th. Evercore lowered their target price on Conagra Brands from $19.00 to $18.00 in a report on Thursday, April 2nd. Sanford C. Bernstein lowered their target price 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. TD Cowen lowered their target price on Conagra Brands from $18.00 to $14.00 and set a "hold" rating for the company in a report on Wednesday, March 25th. Finally, Zacks Research upgraded Conagra Brands from a "strong sell" rating to a "hold" rating in a report on Friday, February 20th. One equities research analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average price target of $15.80.

Insider Transactions at Conagra Brands

In related news, Director John J. Mulligan purchased 17,500 shares of Conagra Brands stock in a transaction on Tuesday, April 14th. The shares were bought at an average price of $14.31 per share, with a total value of $250,425.00. Following the transaction, the director directly owned 20,728 shares of the company's stock, valued at approximately $296,617.68. This trade represents a 542.13% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Richard H. Lenny purchased 25,000 shares of Conagra Brands stock in a transaction on Tuesday, April 14th. The stock was bought at an average cost of $14.34 per share, for a total transaction of $358,500.00. Following the transaction, 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. Additional details regarding this purchase are available in the official SEC disclosure. 0.57% of the stock is owned by company insiders.

Conagra Brands 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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