On June 3, 2023, investment analysts at Barclays issued a research note announcing that they had cut their target price for Conagra Brands (NYSE:CAG) from $44.00 to $42.00. This comes as unwelcome news for investors who may be looking to make positive gains on this stock. The news brings with it a potential upside of 22.02% from the current price, which may cause those invested in the company to reevaluate their position.
This announcement comes after Conagra Brands released its earnings results on April 5th, reporting an EPS of $0.76 for the quarter – exceeding analysts’ estimates by $0.12. The firm also reported revenue of $3.09 billion, compared to analyst expectations of $3.08 billion. While this was good news for the company and its stakeholders, the announcement from Barclays creates uncertainty as to how future financial reports may fare.
Conagra Brands is a well-known manufacturer and seller of processed and packaged foods based in the United States. The company operates through four main segments: Grocery and Snacks, Refrigerated and Frozen, International, and Foodservice – each involving branded shelf-stable food products sold in various retail channels throughout the country.
With such unpredictability surrounding Conagra Brands’ stock – both positively and negatively – it’s essential for investors not to make hasty decisions based on one piece of data alone but to consider market trends and other complex variables before making any changes. Ultimately there are pros and cons involved in investing in any stock option- whether it be Conagra Brands or another market player- so comprehensive research is always critical before making any moves with your investments.
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Conagra Brands Inc. Receives Mixed Reviews from Equities Research Analysts amidst Insider Trading Controversy
Conagra Brands Inc., a major manufacturer and seller of processed and packaged foods, has recently received mixed reviews from several equities research analysts. Credit Suisse Group raised its target price for the company’s shares from $36.00 to $38.00 and rated it as “neutral” in a research report on March 31st, while Deutsche Bank Aktiengesellschaft raised its target price from $35.00 to $38.00 on April 6th. At the same time, Bank of America and Morgan Stanley upped their target prices on Conagra Brands shares from $40.00 to $42.00 and decreased them from $48.00 to $46.00 respectively.
On April 13th, Stifel Nicolaus initiated coverage for the company, giving it a “hold” rating alongside a target share price of $43.00. As per data published by Bloomberg.com, seven analysts have given Conagra Brands a “hold” rating and five have assigned it as a buy-rated stock, with an average price target of $41.08.
Shares of NYSE:CAG opened at $34.42 on June 3rd after having dipped to a low of $31.07 over the past year and reached a high point of $41.30 in the same period.
In terms of financial ratios, Conagra Brands shows current ratios of 0.97 and quick ratios of 0.32 while maintaining a debt-to-equity ratio of 0.90 with market capitalization standing at around $$16.42 billion as per information released by CNN Business.
Despite analytical fluctuations in ratings from different firms’ research reports targeting Conagra Brands lately – possibly influenced by recent insider trading flows reported earlier – several large-scale institutional investors appear to be growing their stocks in the company consistently among which Utah Retirement Systems increased their stake by adding another additional 300 shares last quarter while Envestnet Asset Management raised its holdings by 4.4% during Q3 2023.
Conagra Brands operates in various segments including Grocery and Snacks, Refrigerated and Frozen, International, and Foodservice, primarily catering to the retail channels in the USA.
