Conagra Brands Inc. (NYSE:CAG) has a beta of 0.87, a 12-month trailing P/E ratio of 14.74, and a growth ratio of 2.33. The stock’s Relative Strength Index (RSI) is 30.23, with weekly volatility at 1.35% and ATR at 0.59. The CAG stock’s 52-week price range has touched low of $32.55 and a $39.34 high. Its shares traded higher over the last trading session, gaining 0.45% on 06/21/21. The shares fell to a low of $35.595 before closing at $35.84. Intraday shares traded counted 2.36 million, which was 27.66% higher than its 30-day average trading volume of 3.26M. CAG’s previous close was $35.68 while the outstanding shares total 485.70M.
Investors have identified the Packaged Foods company Conagra Brands Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $17.54 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Conagra Brands Inc. (CAG) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For CAG, the company has in raw cash 80.7 million on their books with 220.6 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 2.63 billion total, with 3.29 billion as their total liabilities.
CAG were able to record 673.3 million as free cash flow during the 09/30/2021 quarter of the year, this saw their quarterly net cash flow reduce by -472.6 million. In cash movements, the company had a total of 1.07 billion as operating cash flow.
Potential earnings growth for Conagra Brands Inc. (CAG)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 09/30/2021 quarter of the year, Conagra Brands Inc. recorded a total of 2.77 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 7.8% coming in sequential stages and their sales for the 09/30/2021 quarter reducing by -8.09%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 2.01 billion trying to sell their products during the last quarter, with the result yielding a gross income of 758.4 million. This allows shareholders to hold on to 485.70M with the recently reported earning now reading 0.58 cents per share. This is a figure that compared to analyst’s prediction for their 09/30/2021 (0.59 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.63 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on CAG sounds very interesting.
Is the stock of CAG attractive?
In related news, Director, JANA PARTNERS LLC sold 2,811,853 shares of the company’s stock in a transaction that recorded on May 06. The sale was performed at an average price of 37.60, for a total value of 105,725,673. As the sale deal closes, the Director, BROWN THOMAS K now sold 11,000 shares of the company’s stock, valued at 412,940. Also, EVP & Co-COO, McGough Thomas M sold 50,000 shares of the company’s stock in a deal that was recorded on Apr 16. The shares were price at an average price of 37.51 per share, with a total market value of 1,875,500. Following this completion of acquisition, the EVP & Co-COO, McGough Thomas M now holds 13,010 shares of the company’s stock, valued at 488,265. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.80%.
7 out of 16 analysts covering the stock have rated it a Buy, while 7 have maintained a Hold recommendation on Conagra Brands Inc.. 1 analysts has assigned a Sell rating on the CAG stock. The 12-month mean consensus price target for the company’s shares has been set at $39.12.