Director Brown Thomas K acquired 7,092 shares in Conagra Brands, Inc. (NYSE:CAG) for $26,477 in transaction occurred on 2018/10/12. After making this transaction, the Director owns a direct stake of 249,993 shares, worth $572,168, as per the last closing price. On 2018/10/12 Connolly Sean, President and CEO at CAG, purchased 14,184 shares at an average price of $35.25 per share. The new stake is valued at $4,702,487.
Separately, it had been reported that some other CAG insiders also took part of the insider trading activity. EVP and CFO, Marberger David S had invested in 2,836 shares for $12,721 through a trade on 2018/10/12. Following this activity, the insider holds 99,969 shares worth $274,901 as of recent close. Wall Street’s most bullish Conagra Brands, Inc. (NYSE:CAG) analysts are predicting the share price to blow past $44 per share during the next 12 months. The current median share price forecast by them is $32.5, suggesting that the stock could increase 50.39% in that time frame. The average price target of $32.18 calls for a nearly 48.91% increase in the stock price.
Conagra Brands, Inc. (CAG) trading activity significantly weakened as the volume at ready counter decreased to 8,426,306 shares versus 10,596,175 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 9,850,788 shares. The share price rose 0.65% in recent trade and currently has a stock-market value of $10.43B. The shares finished at $21.61, after trading as low as $21.09 earlier in the session. It hit an intraday high Friday at $21.64. The stock is now 6.87% above against its bear-market low of $20.22 on December 26, 2018. It has retreated -82.46% since it’s 52-week high of $39.43 reached in June. Now the market price is down -41.33% on the year and up 1.17% YTD.
CAG’s 50 day simple moving average (SMA 50) price is $29.41 and its 200-day simple moving average (SMA 200) price is $34.84. The company’s stock currently has a total float of 481.96M shares. Its weekly volatility is hovering around 3.43% and felt 4.74% volatility in price over a month. On the upside, the share price will test short term resistance at around $21.8. On a downside, the stock is likely to find some support, which begins at $21.25. The failure to get near-term support could push it to $20.9.
It had seen a negative analyst call from Bernstein, which downgraded the stock from Mkt Perform to Underperform on November 14. Analysts at Credit Suisse, started covering the stock on October 31 with a Neutral rating. Brokerage firm Stifel, looks cautious as they stick to prior recommendation of Buy, in a call on December 22. However, they did change the target price from $38 to $42.
When looking at valuations, Conagra Brands, Inc. (CAG) has a cheap P/E of 17.55x as compared to industry average of 20.85x. Moreover, it trades for 9.79 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.26x price/book and 1.27x price/sales. Compared to others, Conagra Brands, Inc. is in a different league with regards to profitability, having net margins of 9.1%. To put some perspective around this, the industry’s average net margin is 8.15%. CAG’s ROE is 16.2%, which is also considerably better than the industry’s ROE of 14.91%. It’s also very liquid in the near term, with a current ratio of 1.5. The stock has a debt/capital of 1.6.
Shares of Conagra Brands, Inc. (CAG) have dropped -25.7% since the company’s Aug-19 earnings report. Over the past 12 fiscal quarters, Conagra Brands, Inc. (NYSE:CAG) has topped consensus earnings estimates in 9 quarters (75%), missed earnings in 1 quarters (8%), whereas at 2 occasion EPS met analyst expectations. CAG last reported earnings on December 20, 2018 when it released Nov-18 results that exceeded expectations. The company raked in $0.67 per share, -96.9% change on the same period last year. That was better than consensus for $0.55. Revenue for the recent quarter stood at $2.38 billion, up 10% on last year and below the $2.41 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $2.51 billion to $2.59 billion, which should be compared with $1.86 billion generated last year. EPS is seen in a range of $0.43 to $0.48, against the $0.51 reported a year ago.