Conagra Brands Inc. (NYSE: CAG) stock fell -0.93% on Friday to $33.98 against a previous-day closing price of $34.30. With 2.2 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.26 million shares. During the session, the Packaged Foods company that operates in wider Consumer Defensive sector, reached to the highest price of $34.47 whereas the lowest price it dropped to was $33.94. The 52-week range on CAG shows that it touched its highest point at $36.97 and its lowest point at $30.06 during that stretch. It currently has a 1-year price target of $35.87. With its current market cap of 15.92 billion, CAG has annualized dividend of $1.32 while the current yield stands at 3.88%. Beta for the stock currently stands at 0.59.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CAG was down-trending over the past week, with a drop of -0.03%, but this was down by -2.33% over a month. Three-month performance dropped to -4.79% while six-month performance fell -3.58%. The stock gained 4.91% in the past year, while it has lost -0.50% so far this year. A look at the trailing 12-month EPS for CAG yields 1.84 with Next year EPS estimates of 2.56. For the next quarter, that number is 0.51. This implies an EPS growth rate of -30.80% for this year and 5.56% for next year. EPS is expected to grow by 3.46% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 8.40%.
Float and Shares Shorts:
At present, 480.30 million CAG shares are outstanding with a float of 478.16 million shares on hand for trading. On Jul 14, 2022, short shares totaled 10.72 million, which was 2.23% higher than short shares on Jun 14, 2022. In addition to Mr. Sean M. Connolly as the firm’s Pres, CEO & Director, Mr. David S. Marberger serves as its Exec. VP & CFO.
Through their ownership of 83.91% of CAG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 50.71% of CAG, in contrast to 5.37% held by mutual funds. Shares owned by individuals account for 32.82%. As the largest shareholder in CAG with 11.00% of the stake, The Vanguard Group, Inc. holds 52,799,228 shares worth 52,799,228. A second-largest stockholder of CAG, BlackRock Fund Advisors, holds 31,097,137 shares, controlling over 6.48% of the firm’s shares. T. Rowe Price Associates, Inc. is the third largest shareholder in CAG, holding 24,949,835 shares or 5.20% stake. With a 2.95% stake in CAG, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 14,137,169 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.30% of CAG stock, is the second-largest Mutual Fund holder. It holds 11,048,564 shares valued at 378.3 million. Vanguard 500 Index Fund holds 2.21% of the stake in CAG, owning 10,621,081 shares worth 363.67 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on May 28, 2022, CAG reported revenue of $2.91B and operating income of $214.10M. It generated $158.90M net income for the quarter, which came to $888.20M over the last twelve months. The EBITDA in the recently reported quarter was $323.90M and diluted EPS was $0.33. EBITDA for the full year was $1.79B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CAG since 16 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 12 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CAG analysts setting a high price target of $40.00 and a low target of $32.00, the average target price over the next 12 months is $35.65. Based on these targets, CAG could surge 17.72% to reach the target high and fall by -5.83% to reach the target low. Reaching the average price target will result in a growth of 4.91% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CAG will report FY 2023 earnings on 07/13/2023. Analysts have provided yearly estimates in a range of $2.45 being high and $2.38 being low. For CAG, this leads to a yearly average estimate of $2.41. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Conagra Brands Inc. surprised analysts by $0.02 when it reported $0.65 EPS against a consensus estimate of $0.63. The surprise factor in the prior quarter was $0.00. Based on analyst estimates, the high estimate for the next quarter is $0.56 and the low estimate is $0.44. The average estimate for the next quarter is thus $0.51.
Summary of Insider Activity:
Insiders traded CAG stock several times over the past three months with 13 Buys and 0 Sells. In these transactions, 60,891 shares were bought while 0 shares were sold. The number of buy transactions has increased to 26 while that of sell transactions has risen to 6 over the past year. The total number of shares bought during that period was 258,823 while 200,382 shares were sold.