Conagra Brands (NYSE:CAG) announced its earnings results on Tuesday. The company reported $0.75 earnings per share for the quarter, topping the consensus estimate of $0.66 by $0.09, MarketWatch Earnings reports. Conagra Brands had a net margin of 7.37% and a return on equity of 12.08%. The firm had revenue of $3.29 billion for the quarter, compared to the consensus estimate of $3.13 billion. During the same period in the prior year, the firm earned $0.36 EPS. The firm's revenue for the quarter was up 25.8% on a year-over-year basis.
Shares of Conagra Brands stock traded up $1.47 during trading hours on Tuesday, hitting $35.17. The company had a trading volume of 8,408,142 shares, compared to its average volume of 4,646,951. The company has a market cap of $16.41 billion, a P/E ratio of 22.40, a price-to-earnings-growth ratio of 2.02 and a beta of 0.82. The company's 50-day moving average is $33.56 and its two-hundred day moving average is $31.78. The company has a debt-to-equity ratio of 1.16, a current ratio of 0.87 and a quick ratio of 0.34. Conagra Brands has a twelve month low of $22.83 and a twelve month high of $35.79.
The business also recently announced a quarterly dividend, which was paid on Wednesday, June 3rd. Stockholders of record on Thursday, April 30th were issued a $0.2125 dividend. This represents a $0.85 annualized dividend and a dividend yield of 2.42%. The ex-dividend date was Wednesday, April 29th. Conagra Brands's payout ratio is 42.29%.
In related news, Director Jana Partners Llc sold 274,341 shares of the stock in a transaction on Monday, April 27th. The shares were sold at an average price of $34.60, for a total transaction of $9,492,198.60. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Thomas M. Mcgough sold 80,615 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $35.00, for a total transaction of $2,821,525.00. Following the sale, the insider now owns 226,484 shares of the company's stock, valued at approximately $7,926,940. The disclosure for this sale can be found here. In the last quarter, insiders have sold 367,911 shares of company stock valued at $12,745,447. 0.84% of the stock is owned by company insiders.
Several equities research analysts recently weighed in on the stock. Jefferies Financial Group raised shares of Conagra Brands from a "hold" rating to a "buy" rating and set a $41.00 target price on the stock in a research note on Monday, June 22nd. Standpoint Research cut shares of Conagra Brands from a "buy" rating to a "hold" rating in a report on Monday, May 18th. Credit Suisse Group boosted their price target on shares of Conagra Brands from $35.00 to $36.00 and gave the stock a "neutral" rating in a report on Friday, May 15th. Cfra reiterated a "strong-buy" rating and set a $35.00 price target (up previously from $33.00) on shares of Conagra Brands in a report on Tuesday, March 31st. Finally, Royal Bank of Canada reiterated a "hold" rating and set a $34.00 price target on shares of Conagra Brands in a report on Wednesday, April 1st. One research analyst has rated the stock with a sell rating, nine have issued a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company. The company currently has an average rating of "Hold" and an average price target of $34.38.
About Conagra Brands
Conagra Brands, Inc, together with its subsidiaries, operates as a food company in North America. The company operates through Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments. The Grocery & Snacks segment primarily offers shelf stable food products in various retail channels in the United States.
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Restaurant Stocks That Still Look Tasty As the Economy Reopens
As part of our national response to the Covid-19 pandemic, many Americans considered it their patriotic, if not moral, duty to support the restaurant industry. And while many consumers were intensely focused on their small, local restaurants, the national chains were still open for business during this time.
And the reality is that the national chains are going to be the most adaptable to whatever pace of economic recovery we see. Hopes for a “V” shaped recovery have pretty much gone out the window. The new model suggests a stair-step recovery may be the best-case scenario.
The worst case scenario for the restaurant industry will be one where different regions of the country are subject to rolling lockdowns. In a business with notoriously low margins, an open/close, open/close recovery would be disastrous.
It’s one reason why I’m not sure I would be diving into restaurant stocks right now. But the same was being said of airline stocks and cruise line stocks. And sure enough, discount investors have been trying to invest in these stocks.
But as all 50 states have now re-opened in some fashion, it’s not unlikely that restaurant stocks are drawing attention from investors. We’ve put together this presentation that highlights seven restaurant stocks that you should consider looking at if you want to dive into this sector.
View the "Restaurant Stocks That Still Look Tasty As the Economy Reopens".
