Conagra Brands, Inc.

New York Stock Exchange
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Somewhat Bearish -25

Arrowstreet Capital Limited Partnership Has $180.09 Million Holdings in Conagra Brands $CAG - MarketBeat

AI-generated analysis

📈 Arrowstreet Capital increased its CAG stake by 34.5% to 10.4 million shares worth $180.1 million in Q4.

📉 Conagra Brands reported EPS of $0.39, missing the $0.40 consensus estimate for the quarter.

💰 The company paid a $0.35 per share dividend, implying a high yield of 10.2%.

📊 Revenue reached $2.79 billion, slightly exceeding analyst expectations of $2.76 billion.

🔻 Multiple analysts including TD Cowen and JPMorgan Chase lowered price targets to around $14.

⚖️ The consensus analyst rating is 'Reduce' with an average target price of $14.33.

🏦 Institutional ownership stands at 83.75% across hedge funds and large investors.

👔 Corporate insiders purchased shares in April, with Director Richard H. Lenny buying 25,000 shares.

📉 The stock has a negative P/E ratio of -137.31 due to recent earnings misses.

📈 Revenue declined 1.9% year-over-year during the reported quarter.

Bullish Signals
  • Arrowstreet Capital significantly increased its stake by 34.5%, signaling institutional confidence in the company's long-term prospects.
  • The stock offers a high dividend yield of approximately 10.2%, providing attractive income for investors.
  • Revenue of $2.79 billion slightly beat analyst expectations, demonstrating resilience despite macroeconomic headwinds.
  • Corporate insiders have been actively buying shares, with Directors Lenny and Mulligan increasing their positions significantly in April.
  • The company maintains a positive return on equity of 10.15%, indicating efficient use of shareholder capital.
Risk Factors
  • Conagra Brands missed earnings estimates by one penny, resulting in a negative P/E ratio of -137.31.
  • Multiple major analysts have lowered price targets, with the consensus rating now 'Reduce' at $14.33.
  • The dividend payout ratio is negative at -1,400%, meaning the dividend is not covered by current earnings.
  • Revenue declined 1.9% year-over-year, indicating potential weakness in core business segments.
  • Analyst sentiment has deteriorated, with firms like Wells Fargo downgrading to 'underweight' and others cutting targets.
Full Analysis
Arrowstreet Capital Limited Partnership significantly increased its stake in Conagra Brands (CAG) by 34.5% in the fourth quarter, ending with approximately 10.4 million shares valued at $180.1 million. While Arrowstreet boosted its position, other institutional investors like Harbour Investments and Thurston Springer Miller Herd & Titak Inc. also increased their holdings, though some stakes remain small. Overall, 83.75% of the company's stock is owned by institutional investors and hedge funds. Conagra Brands recently reported quarterly earnings that missed analyst estimates, with EPS of $0.39 versus a consensus of $0.40, while revenue came in at $2.79 billion, slightly beating expectations. The company declared a quarterly dividend of $0.35 per share, resulting in an annualized yield of approximately 10.2%. However, the payout ratio is negative at -1,400%, indicating the dividend is not fully covered by current earnings. Wall Street sentiment toward Conagra Brands has turned cautious, with multiple major firms including TD Cowen, BNP Paribas Exane, Barclays, JPMorgan Chase, and Wells Fargo lowering their price targets. The consensus rating among analysts is now 'Reduce' with an average target price of $14.33. Despite the negative analyst sentiment, corporate insiders have been buying shares, with Directors Richard H. Lenny and John J. Mulligan purchasing significant amounts in April.