Entropy Technologies LP Takes $3.77 Million Position in Conagra Brands $CAG

Key Points

• Entropy Technologies LP opened a new position in Conagra Brands during the fourth quarter, buying 217,726 shares worth about $3.77 million.
• Conagra stock was little changed, but the company remains under pressure: it recently reported EPS of $0.39, slightly below estimates, while revenue of $2.79 billion topped expectations but still fell 1.9% from a year earlier.
• Analysts remain cautious, with several firms cutting price targets and the consensus rating sitting at “Reduce”; meanwhile, Conagra’s quarterly dividend implies a notably high 10.2% yield.

Entropy Technologies LP acquired a new stake in shares of Conagra Brands (NYSE:CAG - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 217,726 shares of the company's stock, valued at approximately $3,769,000.

Several other hedge funds have also recently modified their holdings of CAG. Norges Bank acquired a new position in shares of Conagra Brands during the fourth quarter valued at about $145,656,000. Two Sigma Investments LP increased its holdings in shares of Conagra Brands by 239.6% during the third quarter. Two Sigma Investments LP now owns 8,347,163 shares of the company's stock valued at $152,837,000 after acquiring an additional 5,889,542 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in shares of Conagra Brands by 245.5% during the third quarter. Arrowstreet Capital Limited Partnership now owns 7,734,061 shares of the company's stock valued at $141,611,000 after acquiring an additional 5,495,503 shares in the last quarter. AQR Capital Management LLC boosted its position in Conagra Brands by 216.2% in the third quarter. AQR Capital Management LLC now owns 7,459,654 shares of the company's stock valued at $135,318,000 after buying an additional 5,100,424 shares during the last quarter. Finally, Qube Research & Technologies Ltd boosted its position in Conagra Brands by 241.9% in the third quarter. Qube Research & Technologies Ltd now owns 5,915,490 shares of the company's stock valued at $108,313,000 after buying an additional 4,185,486 shares during the last quarter. Institutional investors and hedge funds own 83.75% of the company's stock.

Conagra Brands Trading Down 0.1%

Conagra Brands stock opened at $13.73 on Monday. The company has a current ratio of 0.90, a quick ratio of 0.30 and a debt-to-equity ratio of 0.79. Conagra Brands has a 12 month low of $12.53 and a 12 month high of $22.49. The stock's 50 day simple moving average is $14.05 and its two-hundred day simple moving average is $16.34. The firm has a market cap of $6.57 billion, a PE ratio of -137.31 and a beta of -0.02.

Conagra Brands (NYSE:CAG - Get Free Report) last released its quarterly earnings data on Wednesday, April 1st. The company reported $0.39 EPS for the quarter, missing the consensus estimate of $0.40 by ($0.01). Conagra Brands had a positive return on equity of 10.15% and a negative net margin of 0.39%.The company had revenue of $2.79 billion during the quarter, compared to analysts' expectations of $2.76 billion. During the same quarter in the prior year, the company posted $0.51 EPS. The company's revenue for the quarter was down 1.9% on a year-over-year basis. Analysts anticipate that Conagra Brands will post 1.7 earnings per share for the current year.

Conagra Brands Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, June 3rd. Shareholders of record on Thursday, April 30th were given a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 10.2%. The ex-dividend date was Thursday, April 30th. Conagra Brands's dividend payout ratio is currently -1,400.00%.

Insider Activity at Conagra Brands

In related news, Director Richard H. Lenny acquired 25,000 shares of the stock in a transaction on Tuesday, April 14th. The shares were acquired at an average price of $14.34 per share, for a total transaction of $358,500.00. Following the transaction, the director owned 229,340 shares in the company, valued at approximately $3,288,735.60. This trade represents a 12.23% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director John J. Mulligan acquired 17,500 shares of the stock in a transaction on Tuesday, April 14th. The stock was bought at an average price of $14.31 per share, for a total transaction of $250,425.00. Following the transaction, the director owned 20,728 shares in the company, valued at approximately $296,617.68. This represents a 542.13% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.57% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages recently commented on CAG. UBS Group dropped their target price on Conagra Brands from $16.00 to $13.00 and set a "neutral" rating on the stock in a research report on Tuesday, June 2nd. Wells Fargo & Company dropped their target price on Conagra Brands from $14.00 to $13.00 and set an "underweight" rating on the stock in a research report on Monday, May 18th. JPMorgan Chase & Co. dropped their target price on Conagra Brands from $17.00 to $14.00 and set a "neutral" rating on the stock in a research report on Friday, June 5th. Royal Bank Of Canada dropped their target price on Conagra Brands from $20.00 to $17.00 and set a "sector perform" rating on the stock in a research report on Thursday, April 2nd. Finally, Wall Street Zen upgraded Conagra Brands from a "sell" rating to a "hold" rating in a research report on Saturday, February 21st. One analyst has rated the stock with a Buy rating, eleven have given a Hold rating and six have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Reduce" and an average target price of $14.33.

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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