Freestone Grove Partners LP Takes Position in Conagra Brands $CAG

Key Points

• Freestone Grove Partners acquired 2.25 million Conagra Brands shares worth approximately $30.3 million, representing about 0.47% of the company. Institutional investors and hedge funds collectively own 83.75% of CAG.
• Conagra reported quarterly EPS of $0.47, slightly above analyst expectations, while revenue of $2.88 billion narrowly missed estimates; revenue increased 3.6% year over year. The company guided to fiscal 2027 EPS of $1.40–$1.50.
• The company’s quarterly dividend is $0.175 per share, or $0.70 annualized, yielding about 4.4%. Analysts remain cautious, with a consensus “Reduce” rating and an average price target of $14.07 versus the stock’s $16.00 opening price.

Freestone Grove Partners LP purchased a new position in Conagra Brands (NYSE:CAG - Free Report) during the 2nd quarter, according to its most recent 13F filing with the SEC. The firm purchased 2,252,285 shares of the company's stock, valued at approximately $30,316,000. Freestone Grove Partners LP owned about 0.47% of Conagra Brands as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the stock. BlackRock Inc. acquired a new stake in shares of Conagra Brands in the 2nd quarter valued at approximately $1,071,275,000. State Street Corp raised its holdings in Conagra Brands by 2.3% in the second 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. Dimensional Fund Advisors LP boosted its position 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 in the last quarter. Invesco Ltd. boosted its position in shares of Conagra Brands by 13.3% during 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 in the last quarter. Finally, Morgan Stanley grew its holdings in shares of Conagra Brands by 18.5% in the 4th quarter. Morgan Stanley now owns 15,229,557 shares of the company's stock valued at $263,624,000 after buying an additional 2,376,823 shares during the period. 83.75% of the stock is owned by institutional investors and hedge funds.

Conagra Brands Stock Performance

CAG opened at $16.00 on Friday. The business's 50-day moving average price is $14.73 and its two-hundred day moving average price is $15.24. Conagra Brands has a 1 year low of $12.53 and a 1 year high of $20.32. The company has a market capitalization of $7.66 billion, a price-to-earnings ratio of -4.00 and a beta of -0.03. 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 quarterly 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 company had revenue of $2.88 billion for the quarter, compared to analyst estimates of $2.89 billion. Conagra Brands had a positive return on equity of 10.44% and a negative net margin of 16.99%.The company's quarterly revenue was up 3.6% compared to the same quarter last year. During the same period in the previous year, the company posted $0.56 earnings per share. Conagra Brands has set its FY 2027 guidance at 1.400-1.500 EPS. Equities analysts expect that Conagra Brands will post 1.45 EPS for the current fiscal year.

Conagra Brands Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 2nd. Shareholders of record on Thursday, July 30th will be given a dividend of $0.175 per share. The ex-dividend date of this dividend is Thursday, July 30th. This represents a $0.70 dividend on an annualized basis and a yield of 4.4%. Conagra Brands's dividend payout ratio is -17.50%.

Wall Street Analyst Weigh In

Several analysts recently commented on CAG shares. Zacks Research downgraded Conagra Brands from a "hold" rating to a "strong sell" rating in a research note on Monday, May 11th. Wells Fargo & Company lowered their price target on Conagra Brands from $14.00 to $13.00 and set an "underweight" rating for the company in a report on Monday, May 18th. JPMorgan Chase & Co. lifted their price objective on Conagra Brands from $14.00 to $15.00 and gave the company a "neutral" rating in a report on Thursday, July 16th. Morgan Stanley decreased their price objective on Conagra Brands from $15.00 to $13.00 and set an "equal weight" rating for the company in a research report on Friday, June 5th. Finally, Evercore lowered their target price on Conagra Brands from $18.00 to $13.00 in a research note on Wednesday, June 10th. 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 stock. According to data from MarketBeat.com, the company presently has a consensus 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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