Conagra Brands Inc. (CAG): Why analyst showing interest

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Conagra Brands Inc. (NYSE:CAG) changes shares on Monday trading session, with a change of 2.53% or $0.85 shares. The trading starts at $34.08 and closed at $33.55 throughout the day. The trading session low price was $34.08 and day high was $34.71 on Monday, June 22. After the session, the Consumer Defensive sector daily volume shifted to 3.99 million while its average volume is 4.02M. In other hand, the CAG market cap reached to $17.10B. While, its current target price is $34.40 according to WSJ.

Checking out the performance report which defines the increase or decrease of prices for a specific period. For the last 5 trading sessions, its performance is up 3.21% and up 6.67% for month. Its quarterly performance was 33.54% above, while its half year performance is up 2.20%. CAG yearly performance stood at positive 19.78% and rise 0.47% for year-to-date. Current recommendation for Conagra Brands Inc. is 2.40.

Earnings per share or EPS is an important financial measure, which defines the profitability of a company. CAG EPS (TTM) for 12-month is 1.57. EPS for this year is 10.90%, while for the next year its value is 2.28. Sales growth for the current quarter is 2.53 while its EPS Q/Q reached -15.80%. It has an EPS of -8.30% down for past five years and for the next five years will be up 8.68%.

Let’s take a look on the analyst recommendations on CAG for the current month and previous month. For the current month, 8 of 18 analysts recommend stock as Buy while 0 as Sell, 0 as overweight, 0 as underweight and 10 as Hold. As compared with the previous month ratings, 18 analysts participate in stock recommendation. Out of 18, 0 rated it sell, 7 rated it as Buy and 11 as Hold Ratings. On the other hand, target price ranges from $31.00-$41.00. Average target price for CAG was reached at $35.35.

Vanguard Group, Inc. (The), Blackrock Inc. and Capital World Investors are the top three holders in Conagra Brands Inc. (CAG) stock. On Mar 30, 2020, Vanguard Group, Inc. (The) has 58.61 million shares which valued 1.72 billion. On Mar 30, 2020, Blackrock Inc. owned 40.45 million shares which valued at 1.19 billion. On Mar 30, 2020, Capital World Investors has a total of 38.06 million shares which valued at 1.12 billion. In the end, Capital World Investors have 7.81% shares outstanding of Conagra Brands Inc. (CAG) on Mar 30, 2020. The insider ownership moved to 0.20% and institutional holding shifted to 85.60%.

The company posted an EPS (TTM) of 1.57. According to the most recent quarter report on (May 2020), 15 analysts estimated an average EPS of 0.64, while 0.36 EPS posted a year ago period. Analyst Estimated EPS for CAG published in the report was 0.58-0.72 during the same period. Comparing with last year, the average estimated EPS was 0.36 which is lower than 0.47 which was posted for recent quarter EPS.

A brief look on simple moving average (SMA) that determines the market price can impact a market. The SMA for CAG rise 12.42% for period of 200 days. SMA for 50 days was 2.46% which is showing green signal, while SMA-20 was 2.35%. The moving average value for Conagra Brands Inc. (CAG) is 31.56 and 33.55 for 200 and 50 days respectively.

Let’s take a look on the insider transactions, in which multiple shareholders are showing interest in CAG stock. On Jun 01, McGough Thomas M, President, Operating Segments, sold 80,615 trading shares at the cost of $35.00, which valued at 2.82 million. On Apr 29, JANA PARTNERS LLC, Director, sold 5,619 shares at the cost of $34.48, with total shares of 10,853,203. On Apr 28, JANA PARTNERS LLC, Director, sold 599,689 shares at the cost of 34.84. After this transaction, JANA PARTNERS LLC total shares reached to 10,858,822 which valued at 20.89 million.