Zacks Investment Research Upgrades Conagra Brands (NYSE:CAG) to “Hold”

Zacks Investment Research upgraded shares of Conagra Brands (NYSE:CAG) from a sell rating to a hold rating in a report published on Monday morning, Zacks.com reports. Zacks Investment Research currently has $29.00 target price on the stock.

According to Zacks, “Conagra has outperformed the industry in the past six months. The company is gaining from the buyout of Pinnacle Foods, which boosted the top line during fourth-quarter fiscal 2019. The company is on track with the integration of the buyout. Further, it is striving to boost capabilities across the frozen and snacking businesses. Management is also progressing well with the value-over-volume strategy and plans to implement the same in the Pinnacle Foods portfolio. On the flip side, adverse impacts of divestitures were major deterrents during the fourth quarter, wherein the top and the bottom line missed the Zacks Consensus Estimate. The company is struggling against dismal performance in the Foodservice unit. These along with adverse currency and rising input cost woes have been limiting the company’s growth.”

A number of other equities analysts have also commented on the company. SunTrust Banks reaffirmed a hold rating and issued a $8.00 price objective on shares of TrueCar in a research note on Tuesday, May 14th. Morgan Stanley lifted their target price on United Technologies from $155.00 to $164.00 and gave the stock an overweight rating in a report on Monday, May 20th. ValuEngine upgraded William Lyon Homes from a strong sell rating to a sell rating in a report on Wednesday, April 10th. UBS Group set a $170.00 target price on United Rentals and gave the stock a buy rating in a report on Friday, June 28th. Finally, Goldman Sachs Group reiterated a buy rating on shares of FRESENIUS SE &/S in a report on Friday, March 22nd. Two equities research analysts have rated the stock with a sell rating, three have given a hold rating and ten have assigned a buy rating to the company. Conagra Brands presently has a consensus rating of Buy and an average target price of $35.23.

Shares of CAG stock opened at $27.48 on Monday. The company’s 50-day moving average price is $28.39. Conagra Brands has a 12 month low of $20.22 and a 12 month high of $38.43. The firm has a market capitalization of $13.77 billion, a price-to-earnings ratio of 13.67, a price-to-earnings-growth ratio of 1.92 and a beta of 0.85. The company has a quick ratio of 0.54, a current ratio of 1.28 and a debt-to-equity ratio of 1.43.

Conagra Brands (NYSE:CAG) last posted its quarterly earnings data on Thursday, June 27th. The company reported $0.36 EPS for the quarter, missing the Zacks’ consensus estimate of $0.42 by ($0.06). The company had revenue of $2.61 billion during the quarter, compared to analyst estimates of $2.66 billion. Conagra Brands had a return on equity of 13.74% and a net margin of 7.11%. Conagra Brands’s revenue was up 32.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.50 earnings per share. As a group, analysts forecast that Conagra Brands will post 2.11 EPS for the current year.

In other news, Director Craig P. Omtvedt acquired 25,000 shares of the firm’s stock in a transaction dated Friday, June 28th. The stock was purchased at an average price of $26.73 per share, for a total transaction of $668,250.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Joie A. Gregor purchased 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, April 16th. The shares were bought at an average price of $29.99 per share, with a total value of $299,900.00. Following the acquisition, the director now directly owns 145,440 shares of the company’s stock, valued at approximately $4,361,745.60. The disclosure for this purchase can be found here. In the last 90 days, insiders have sold 12,717 shares of company stock valued at $374,577. Corporate insiders own 0.92% of the company’s stock.

Institutional investors have recently made changes to their positions in the stock. Investors Research Corp bought a new stake in Conagra Brands during the first quarter worth $28,000. CSat Investment Advisory L.P. grew its holdings in Conagra Brands by 101.4% during the first quarter. CSat Investment Advisory L.P. now owns 1,176 shares of the company’s stock worth $33,000 after buying an additional 592 shares in the last quarter. Princeton Global Asset Management LLC bought a new stake in Conagra Brands during the fourth quarter worth $26,000. 1832 Asset Management L.P. bought a new stake in Conagra Brands during the fourth quarter worth $28,000. Finally, Optimum Investment Advisors grew its holdings in Conagra Brands by 335.7% during the first quarter. Optimum Investment Advisors now owns 1,307 shares of the company’s stock worth $36,000 after buying an additional 1,007 shares in the last quarter. Institutional investors and hedge funds own 88.55% of the company’s stock.

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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