Conagra Brands (NYSE:CAG) Given Average Rating of “Reduce” by Brokerages

Shares of Conagra Brands (NYSE:CAG) have received an average recommendation of “Reduce” from the eighteen ratings firms that are currently covering the stock, MarketBeat Ratings reports. Six equities research analysts have rated the stock with a sell recommendation, eleven have given a hold recommendation and one has issued a buy recommendation on the company. The average twelve-month target price among brokers that have issued a report on the stock in the last year is $14.0667.

CAG has been the subject of several analyst reports. Morgan Stanley reduced their price objective on Conagra Brands from $15.00 to $13.00 and set an “equal weight” rating for the company in a research note on Friday, June 5th. Wells Fargo & Company lowered their target price on Conagra Brands from $14.00 to $13.00 and set an “underweight” rating on the stock in a research report on Monday, May 18th. Royal Bank Of Canada cut their price target on Conagra Brands from $16.00 to $14.00 and set a “sector perform” rating for the company in a report on Thursday, July 16th. Sanford C. Bernstein restated an “underperform” rating and issued a $12.00 price target (down from $16.00) on shares of Conagra Brands in a research report on Wednesday, June 3rd. Finally, Deutsche Bank Aktiengesellschaft reduced their price target on Conagra Brands from $14.00 to $12.00 and set a “hold” rating for the company in a research report on Thursday, June 18th.

Key Stories Impacting Conagra Brands

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

• Positive Sentiment: Zacks Research projects FY2029 earnings of $1.61 per share, above the current-year consensus estimate of $1.45, suggesting potential longer-term earnings growth if Conagra’s performance stabilizes.
• Neutral Sentiment: Zacks maintained a “Strong Sell” rating, while its FY2027 and FY2028 EPS forecasts of $1.46 and $1.50, respectively, remain close to or above the current consensus estimate. Conagra Brands stock information
• Negative Sentiment: Zacks cut its FY2027 EPS forecast to $1.46 from $1.74 and its FY2028 forecast to $1.50 from $1.82. It also lowered estimates for multiple quarters, including FY2027 Q1 to $0.32 from $0.40, Q2 to $0.39 from $0.49, Q3 to $0.36 from $0.40, and Q4 to $0.39 from $0.45. Forecasts for FY2028 quarters were also reduced, including Q1 to $0.33 from $0.44, Q2 to $0.40 from $0.50, Q3 to $0.37 from $0.42, and Q4 to $0.40 from $0.46.
• Negative Sentiment: Sector commentary cited growing consumer resistance to price increases, following a disappointing Procter & Gamble result and cautious outlook. That raises concern that Conagra may have less ability to offset costs through pricing, potentially pressuring sales growth and margins. Consumer staples estimates and pricing pressure

Hedge Funds Weigh In On Conagra Brands

Several large investors have recently added to or reduced their stakes in CAG. VIRGINIA RETIREMENT SYSTEMS ET Al increased its stake in shares of Conagra Brands by 24.8% in the fourth quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 661,029 shares of the company’s stock worth $11,442,000 after purchasing an additional 131,287 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in shares of Conagra Brands by 23.7% during the 4th quarter. Goldman Sachs Group Inc. now owns 8,125,901 shares of the company’s stock valued at $140,659,000 after buying an additional 1,554,725 shares in the last quarter. Leonteq Securities AG bought a new position in Conagra Brands in the 4th quarter worth $2,415,000. Sound Income Strategies LLC grew its position in shares of Conagra Brands by 153.4% during 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 in the last quarter. Finally, Marathon Trading Investment Management LLC bought a new position in Conagra Brands in the 4th quarter worth approximately $1,367,000. Hedge funds and other institutional investors own 83.75% of the company’s stock.

Conagra Brands Stock Performance

Shares of NYSE CAG opened at $14.53 on Monday. Conagra Brands has a 12-month low of $12.53 and a 12-month high of $20.32. The firm has a market capitalization of $6.95 billion, a price-to-earnings ratio of -3.63 and a beta of -0.03. The company has a current ratio of 0.90, a quick ratio of 0.31 and a debt-to-equity ratio of 1.02. The firm has a 50 day moving average of $13.84 and a 200 day moving average of $15.55.

Conagra Brands (NYSE:CAG) last released its quarterly earnings results on Wednesday, July 15th. The company reported $0.47 earnings per share for the quarter, topping the consensus estimate of $0.46 by $0.01. The business 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%. The company’s quarterly revenue was up 3.6% on a year-over-year basis. During the same period last year, the firm earned $0.56 earnings per share. Conagra Brands has set its FY 2027 guidance at 1.400-1.500 EPS. On average, research analysts anticipate that Conagra Brands will post 1.45 earnings per share for the current year.

Conagra Brands Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 2nd. Investors of record on Thursday, July 30th will be issued a $0.175 dividend. This represents a $0.70 annualized dividend and a yield of 4.8%. The ex-dividend date of this dividend is Thursday, July 30th. Conagra Brands’s dividend payout ratio is currently -17.50%.

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.