Swiss Life Asset Management Ltd Grows Holdings in Conagra Brands $CAG

Key Points

• Swiss Life Asset Management sharply increased its stake in Conagra Brands by 491.9% in the fourth quarter, ending with 1,124,964 shares worth about $19.5 million.
• Conagra reported quarterly earnings of $0.39 per share, slightly below analyst expectations, while revenue of $2.79 billion came in above estimates but still declined 1.9% year over year.
• The company’s stock has been under pressure, trading near its 52-week low, while analysts remain cautious with a “Reduce” consensus rating and an average price target of $15.80; meanwhile, the company announced a quarterly dividend of $0.35 per share, implying a 10.1% annualized yield.

Swiss Life Asset Management Ltd grew its holdings in Conagra Brands (NYSE:CAG - Free Report) by 491.9% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,124,964 shares of the company's stock after purchasing an additional 934,905 shares during the period. Swiss Life Asset Management Ltd owned about 0.24% of Conagra Brands worth $19,473,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Wealth Enhancement Advisory Services LLC increased its stake in Conagra Brands by 45.3% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 342,942 shares of the company's stock worth $6,485,000 after purchasing an additional 106,891 shares during the period. Sound Income Strategies LLC increased its stake in Conagra Brands by 153.4% in the fourth quarter. Sound Income Strategies LLC now owns 406,666 shares of the company's stock worth $6,897,000 after purchasing an additional 246,178 shares during the period. AE Wealth Management LLC increased its stake in Conagra Brands by 13.7% in the third quarter. AE Wealth Management LLC now owns 720,093 shares of the company's stock worth $13,185,000 after purchasing an additional 86,604 shares during the period. JPMorgan Chase & Co. increased its stake in Conagra Brands by 15.6% in the third quarter. JPMorgan Chase & Co. now owns 3,021,478 shares of the company's stock worth $55,323,000 after purchasing an additional 408,597 shares during the period. Finally, AIA Group Ltd increased its stake in shares of Conagra Brands by 238.9% during the third quarter. AIA Group Ltd now owns 205,954 shares of the company's stock valued at $3,771,000 after buying an additional 145,191 shares during the period. Hedge funds and other institutional investors own 83.75% of the company's stock.

Conagra Brands Price Performance

Shares of CAG stock opened at $13.93 on Tuesday. Conagra Brands has a fifty-two week low of $13.60 and a fifty-two week high of $23.47. The firm has a market capitalization of $6.66 billion and a price-to-earnings ratio of -139.24. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.30 and a current ratio of 0.90. The stock's 50-day simple moving average is $15.68 and its 200-day simple moving average is $17.04.

Conagra Brands (NYSE:CAG - Get Free Report) last issued its quarterly earnings results on Wednesday, April 1st. The company reported $0.39 earnings per share for the quarter, missing analysts' consensus estimates 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 business had revenue of $2.79 billion for the quarter, compared to analysts' expectations of $2.76 billion. During the same quarter in the previous year, the firm posted $0.51 EPS. Conagra Brands's revenue was down 1.9% on a year-over-year basis. As a group, equities analysts forecast that Conagra Brands will post 1.7 earnings per share for the current fiscal year.

Conagra Brands Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 3rd. Stockholders of record on Thursday, April 30th will be paid a dividend of $0.35 per share. The ex-dividend date is Thursday, April 30th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 10.1%. Conagra Brands's payout ratio is presently -1,400.00%.

Insider Transactions at Conagra Brands

In other news, Director John J. Mulligan bought 17,500 shares of the firm's stock in a transaction that occurred on Tuesday, April 14th. The stock was purchased at an average price of $14.31 per share, with a total value of $250,425.00. Following the completion of the acquisition, the director directly owned 20,728 shares of the company's stock, valued at $296,617.68. This trade represents a 542.13% 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 Richard H. Lenny bought 25,000 shares of the firm's stock in a transaction that occurred on Tuesday, April 14th. The shares were purchased at an average cost of $14.34 per share, with a total value of $358,500.00. Following the acquisition, the director directly owned 229,340 shares of the company's stock, valued at approximately $3,288,735.60. This trade represents a 12.23% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 0.57% of the company's stock.

Analysts Set New Price Targets

Several brokerages have recently commented on CAG. Wall Street Zen upgraded Conagra Brands from a "sell" rating to a "hold" rating in a research note on Saturday, February 21st. TD Cowen cut their price target on Conagra Brands from $18.00 to $14.00 and set a "hold" rating on the stock in a research note on Wednesday, March 25th. Stifel Nicolaus cut their price target on Conagra Brands from $17.00 to $15.00 and set a "hold" rating on the stock in a research note on Tuesday, April 21st. The Goldman Sachs Group cut their price target on 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, Weiss Ratings restated a "sell (d+)" rating on shares of Conagra Brands in a research note on Friday, May 1st. One research analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, Conagra Brands currently has a consensus rating of "Reduce" and an average price target of $15.80.

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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