Kestra Advisory Services LLC Boosts Stock Holdings in Conagra Brands $CAG

Key Points

• Kestra Advisory Services significantly increased its stake in Conagra Brands, boosting holdings by 148.4% to 161,663 shares valued at about $2.54 million in the first quarter.
• Analysts remain cautious on CAG: the consensus rating is “Reduce” with an average price target of $14.07, and several firms have recently cut targets or issued bearish ratings.
• Conagra reported quarterly EPS slightly above expectations and revenue growth of 3.6%, but the company also cut its dividend to $0.175 per share quarterly, signaling ongoing pressure on earnings and cash flow.

Kestra Advisory Services LLC raised its position in shares of Conagra Brands (NYSE:CAG - Free Report) by 148.4% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 161,663 shares of the company's stock after acquiring an additional 96,584 shares during the quarter. Kestra Advisory Services LLC's holdings in Conagra Brands were worth $2,541,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in CAG. Bell Investment Advisors Inc increased its position in shares of Conagra Brands by 156.9% during the first quarter. Bell Investment Advisors Inc now owns 1,685 shares of the company's stock worth $26,000 after purchasing an additional 1,029 shares in the last quarter. CYBER HORNET ETFs LLC purchased a new position in Conagra Brands in the 2nd quarter valued at $26,000. Harbour Investments Inc. boosted its stake in Conagra Brands by 80.4% during the 4th quarter. Harbour Investments Inc. now owns 1,573 shares of the company's stock worth $27,000 after purchasing an additional 701 shares during the last quarter. MUFG Securities EMEA plc acquired a new stake in Conagra Brands during the 2nd quarter worth $29,000. Finally, Caitong International Asset Management Co. Ltd purchased a new stake in shares of Conagra Brands during the third quarter worth $33,000. Hedge funds and other institutional investors own 83.75% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on CAG shares. Sanford C. Bernstein reiterated an "underperform" rating and issued a $12.00 target price (down from $16.00) on shares of Conagra Brands in a research report on Wednesday, June 3rd. BTIG Research began coverage on shares of Conagra Brands in a research note on Monday, April 13th. They set a "neutral" rating for the company. Deutsche Bank Aktiengesellschaft cut their price objective on shares of Conagra Brands from $14.00 to $12.00 and set a "hold" rating for the company in a report on Thursday, June 18th. Evercore decreased their target price on shares of Conagra Brands from $18.00 to $13.00 in a research note on Wednesday, June 10th. Finally, Zacks Research cut Conagra Brands from a "hold" rating to a "strong sell" rating in a report on Monday, May 11th. 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 company's stock. According to data from MarketBeat, the company has a consensus rating of "Reduce" and an average price target of $14.07.

Conagra Brands Trading Down 1.2%

Shares of CAG opened at $14.29 on Friday. The company has a current ratio of 0.90, a quick ratio of 0.30 and a debt-to-equity ratio of 1.02. Conagra Brands has a 12-month low of $12.53 and a 12-month high of $20.32. The firm has a 50-day moving average price of $13.61 and a 200 day moving average price of $15.71. The firm has a market capitalization of $6.84 billion, a P/E ratio of -3.57 and a beta of -0.02.

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

Conagra Brands Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 2nd. Stockholders of record on Thursday, July 30th will be given a dividend of $0.175 per share. This represents a $0.70 annualized dividend and a dividend yield of 4.9%. The ex-dividend date of this dividend is Thursday, July 30th. Conagra Brands's payout ratio is presently -35.00%.

Key Stories Impacting Conagra Brands

Here are the key news stories impacting Conagra Brands this week:

• Positive Sentiment: Barclays raised its price target on Conagra Brands to $17 from $16 and kept an overweight rating, implying meaningful upside from current levels. Barclays raises Conagra price target
• Positive Sentiment: Jefferies reiterated a Hold rating but lifted its target to $14 from $13, and UBS also nudged its target higher to $14, suggesting analysts see some stabilization after the post-earnings reset. Conagra begins strategic reset with dividend cut and higher reinvestment
• Positive Sentiment: Several reports argue that Conagra’s dividend cut could be constructive because it frees up about $335 million annually for debt reduction and brand investment, which may support a longer-term turnaround. Why Conagra’s dividend cut could be the best thing for investors
• Neutral Sentiment: The company’s Q4 results were mixed: adjusted EPS was roughly in line, but revenue and operating profit missed expectations and management issued a weak annual outlook. Reuters: Conagra forecasts annual profit below estimates
• Neutral Sentiment: Management is emphasizing a margin reset, supply-chain improvements, portfolio simplification, and selective reinvestment, which supports the idea of a turnaround but also highlights that the recovery will take time. Q4 earnings call highlights margin reset and cost focus
• Negative Sentiment: The dividend cut and below-estimate profit outlook signal ongoing pressure on earnings and cash flow, which remains a concern for income-focused investors. Seeking Alpha commentary on Conagra dividend cut

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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