Saba Capital Management L.P. Boosts Holdings in Conagra Brands $CAG

Key Points

• Saba Capital Management increased its Conagra Brands stake by 247% in the first quarter, holding 161,608 shares valued at approximately $2.54 million. Institutional investors collectively own 83.75% of the company.
• Conagra reported quarterly EPS of $0.47, narrowly beating estimates, while revenue rose 3.6% year over year to $2.88 billion. The stock opened at $15.27, with a 52-week range of $12.53 to $20.32.
• The company announced a quarterly dividend of $0.175 per share, equivalent to a 4.6% annualized yield. Analyst sentiment remains cautious, with an average “Reduce” rating and a $14.07 price target.

Saba Capital Management L.P. raised its stake in shares of Conagra Brands (NYSE:CAG - Free Report) by 247.0% in the first quarter, according to its most recent 13F filing with the SEC. The fund owned 161,608 shares of the company's stock after buying an additional 115,040 shares during the period. Saba Capital Management L.P.'s holdings in Conagra Brands were worth $2,540,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of CAG. Bell Investment Advisors Inc raised its position in Conagra Brands by 156.9% during the first quarter. Bell Investment Advisors Inc now owns 1,685 shares of the company's stock valued at $26,000 after acquiring an additional 1,029 shares in the last quarter. CYBER HORNET ETFs LLC purchased a new stake in Conagra Brands in the 2nd quarter worth approximately $26,000. Harbour Investments Inc. grew its stake in shares of 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 period. MUFG Securities EMEA plc purchased a new position in shares of Conagra Brands during the 2nd quarter valued at approximately $29,000. Finally, Caitong International Asset Management Co. Ltd purchased a new position in shares of Conagra Brands during the 3rd quarter valued at approximately $33,000. Hedge funds and other institutional investors own 83.75% of the company's stock.

Conagra Brands Stock Performance

NYSE CAG opened at $15.27 on Tuesday. The company has a market cap of $7.31 billion, a PE ratio of -3.82 and a beta of -0.02. The stock's 50 day simple moving average is $13.72 and its 200-day simple moving average is $15.59. Conagra Brands has a 1-year low of $12.53 and a 1-year high of $20.32. 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 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.46 by $0.01. Conagra Brands had a positive return on equity of 10.44% and a negative net margin of 16.99%.The firm had revenue of $2.88 billion for the quarter, compared to analyst estimates of $2.89 billion. During the same period in the previous year, the company posted $0.56 earnings per share. The business's revenue was up 3.6% on a year-over-year basis. Conagra Brands has set its FY 2027 guidance at 1.400-1.500 EPS. As a group, equities research analysts anticipate that Conagra Brands will post 1.45 EPS for the current fiscal year.

Conagra Brands Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 2nd. Stockholders of record on Thursday, July 30th will be issued 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 dividend yield of 4.6%. Conagra Brands's dividend payout ratio is presently -35.00%.

Analyst Ratings Changes

CAG has been the subject of several analyst reports. Jefferies Financial Group decreased their target price on shares of Conagra Brands from $15.00 to $13.00 and set a "hold" rating for the company in a research note on Wednesday, May 27th. Barclays lifted their price objective on shares of Conagra Brands from $16.00 to $17.00 and gave the company an "overweight" rating in a report on Friday, July 17th. Evercore decreased their price objective on shares of Conagra Brands from $18.00 to $13.00 in a research report on Wednesday, June 10th. The Goldman Sachs Group lowered their target price on shares of Conagra Brands from $17.00 to $15.00 and set a "sell" rating on the stock in a research note on Thursday, April 2nd. Finally, BTIG Research initiated coverage on Conagra Brands in a research report on Monday, April 13th. They set a "neutral" rating on the stock. One research analyst has rated the stock with a Buy rating, eleven have assigned a Hold rating and six have given a Sell rating to the company. According to MarketBeat.com, Conagra Brands has an average rating of "Reduce" and an average price target of $14.07.

Conagra Brands Company 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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