Conagra Brands (NYSE:CAG) Shares Gap Down on Disappointing Earnings

Conagra Brands, Inc. (NYSE:CAG) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $32.72, but opened at $30.09. Conagra Brands shares last traded at $30.16, with a volume of 1,006,000 shares traded.

The company reported $0.53 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.07). Conagra Brands had a net margin of 2.88% and a return on equity of 14.31%. The firm had revenue of $2.79 billion for the quarter, compared to the consensus estimate of $2.84 billion. During the same period in the previous year, the business posted $0.66 earnings per share. The business’s revenue for the quarter was down 3.8% compared to the same quarter last year.

Conagra Brands Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 27th. Shareholders of record on Thursday, October 31st will be given a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 4.77%. The ex-dividend date is Thursday, October 31st. Conagra Brands’s dividend payout ratio (DPR) is presently 191.78%.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Wells Fargo & Company reduced their price objective on shares of Conagra Brands from $32.00 to $31.00 and set an “equal weight” rating for the company in a research report on Wednesday, July 10th. Stifel Nicolaus reduced their target price on shares of Conagra Brands from $32.00 to $30.00 and set a “hold” rating for the company in a report on Friday, July 12th. The Goldman Sachs Group began coverage on Conagra Brands in a report on Monday, August 12th. They issued a “buy” rating and a $36.00 price target on the stock. Citigroup reduced their price objective on Conagra Brands from $32.00 to $30.00 and set a “neutral” rating for the company in a research note on Friday, June 28th. Finally, Barclays decreased their target price on Conagra Brands from $34.00 to $33.00 and set an “overweight” rating on the stock in a report on Friday, July 12th. Nine research analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $31.00.

Insider Transactions at Conagra Brands

In related news, COO Thomas M. Mcgough sold 40,000 shares of the company’s stock in a transaction on Tuesday, August 13th. The stock was sold at an average price of $30.29, for a total transaction of $1,211,600.00. Following the transaction, the chief operating officer now directly owns 161,443 shares of the company’s stock, valued at $4,890,108.47. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.88% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Chilton Capital Management LLC acquired a new position in Conagra Brands in the second quarter worth approximately $25,000. Innealta Capital LLC acquired a new position in shares of Conagra Brands during the 2nd quarter worth $25,000. Whittier Trust Co. raised its holdings in shares of Conagra Brands by 144.4% during the 1st quarter. Whittier Trust Co. now owns 1,415 shares of the company’s stock valued at $42,000 after purchasing an additional 836 shares in the last quarter. LRI Investments LLC acquired a new stake in shares of Conagra Brands in the 1st quarter valued at $44,000. Finally, Security National Bank bought a new stake in Conagra Brands in the fourth quarter worth $48,000. 83.75% of the stock is owned by hedge funds and other institutional investors.

Conagra Brands Price Performance

The company’s 50-day simple moving average is $31.29 and its 200 day simple moving average is $30.26. The company has a quick ratio of 0.33, a current ratio of 0.97 and a debt-to-equity ratio of 0.88. The stock has a market capitalization of $14.03 billion, a price-to-earnings ratio of 40.21, a P/E/G ratio of 2.95 and a beta of 0.32.

About Conagra Brands

Conagra Brands, Inc, together with its subsidiaries, operates as a consumer packaged goods food company primarily in the United States. The company operates through Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments. The Grocery & Snacks segment primarily offers shelf stable food products through various retail channels.