Zacks Investment Research Downgrades ConAgra Foods Inc. (CAG) to Hold
ConAgra Foods Inc. (NYSE:CAG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Monday.
According to Zacks, “ConAgra has been fortifying its business on the back of meaningful restructuring initiatives. In sync with this strategy, the company recently completed the divestiture of its Lamb Weston business. In addition to this, increasing demand for frozen potato products is expected to boost sales in the quarters ahead. Higher revenues and lower costs would likely support ConAgra’s margin expansion trajectory going ahead. However, headwinds such as high volatility in consumers’ brand loyalty, stiff industry rivalry, sluggish economic performance of certain emerging markets and appreciating U.S. dollar might limit growth. Over the last 60 days, the Zacks Consensus Estimate for ConAgra has been revised downward for both fiscal 2017 and 2018.”
Several other research firms also recently commented on CAG. JPMorgan Chase & Co. reaffirmed an “overweight” rating and issued a $55.00 price objective on shares of ConAgra Foods in a report on Wednesday, November 9th. Stifel Nicolaus upped their price objective on shares of ConAgra Foods from $46.00 to $52.00 and gave the company a “hold” rating in a report on Wednesday, October 19th. Credit Suisse Group AG set a $50.00 price objective on shares of ConAgra Foods and gave the company a “hold” rating in a report on Saturday, October 1st. TheStreet raised shares of ConAgra Foods from a “hold” rating to a “buy” rating in a report on Thursday, September 29th. Finally, Royal Bank Of Canada raised shares of ConAgra Foods from a “sector perform” rating to an “outperform” rating and increased their price target for the stock from $50.00 to $54.00 in a report on Friday, October 14th. Seven analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average price target of $50.67.
Shares of ConAgra Foods (NYSE:CAG) opened at 35.82 on Monday. The company has a market capitalization of $15.68 billion, a P/E ratio of 23.98 and a beta of 0.31. The firm has a 50-day moving average of $36.59 and a 200-day moving average of $36.08. ConAgra Foods has a one year low of $29.55 and a one year high of $38.02.
ConAgra Foods (NYSE:CAG) last released its quarterly earnings data on Thursday, September 29th. The company reported $0.61 EPS for the quarter, beating the consensus estimate of $0.48 by $0.13. The business had revenue of $2.67 billion for the quarter. ConAgra Foods had a net margin of 5.76% and a return on equity of 28.48%. The firm’s revenue was down 4.6% on a year-over-year basis. During the same period last year, the company earned $0.41 earnings per share. Analysts forecast that ConAgra Foods will post $1.67 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 30th. Stockholders of record on Monday, October 31st will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.79%. The ex-dividend date of this dividend is Thursday, October 27th. ConAgra Foods’s dividend payout ratio (DPR) is 66.67%.
Several large investors have recently modified their holdings of the stock. Westbourne Investment Advisors Inc. acquired a new stake in shares of ConAgra Foods during the second quarter worth approximately $100,000. Stuart Chaussee & Associates Inc. boosted its stake in shares of ConAgra Foods by 166.3% in the second quarter. Stuart Chaussee & Associates Inc. now owns 2,690 shares of the company’s stock worth $130,000 after buying an additional 1,680 shares during the period. Alpha Windward LLC boosted its stake in shares of ConAgra Foods by 2.2% in the third quarter. Alpha Windward LLC now owns 2,838 shares of the company’s stock worth $134,000 after buying an additional 61 shares during the period. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA boosted its stake in shares of ConAgra Foods by 18.8% in the third quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA now owns 3,166 shares of the company’s stock worth $149,000 after buying an additional 500 shares during the period. Finally, Catalyst Capital Advisors LLC acquired a new stake in shares of ConAgra Foods during the third quarter worth approximately $159,000. Institutional investors and hedge funds own 75.91% of the company’s stock.
About ConAgra Foods
ConAgra Foods, Inc operates as a packaged food company. The Company sells branded, private branded and customized food products, as well as commercially branded foods and ingredients. It also supplies frozen potato and sweet potato products, as well as other vegetable, spice and grain products to a range of restaurants, foodservice operators and commercial customers.
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