Goldman has recently initiated Conagra Brands Inc (CAG) stock to Buy rating, as announced on August 12, 2024, according to Finviz. Earlier, on February 1, 2024, Citigroup had initiated the stock to Neutral, setting a price target of $30. Wells Fargo also initiated Equal Weight rating with a price target of $31. Additionally, Evercore ISI reduced rating on December 11, 2023. TD Cowen analysts, in their report published on September 13, 2023, also initiated Market Perform rating and set a price target of $32 for Conagra Brands Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Conagra Brands Inc (CAG) Stock Trading Recap
On Monday, Conagra Brands Inc (CAG) stock saw a decline, ending the day at $27.74 which represents a decrease of $-0.70 or -2.46% from the prior close of $28.44. The stock opened at $28.49 and touched a low of $27.71 during the day, reaching a high of $28.51. The volume of shares traded was 6.42 million exceeding the average volume of 4.84 million.
CAG Stock Performance and Moving Averages
In recent trading, Conagra Brands Inc (CAG) stock price has shown some volatility, fluctuating -3.58% over the last five trades and -5.55% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -10.37%, and it has plunged by -8.63% in the previous three months. Currently, CAG is trading at -5.15%, -9.34%, and -6.88% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, CAG, a Consumer Defensive sector stock, is trading -16.55% below its 52-week high but remains 4.21% above its 52-week low. The Average True Range (ATR) (14 days) of 0.55 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Conagra Brands Inc’s Profitability and Valuation Ratios
Conagra Brands Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 15.32% and a profit margin of 4.14%, with a gross margin of -10.37%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Conagra Brands Inc’s market capitalization stands at $13.30 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 27.02, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 10.32. Additionally, the Price-to-Sales Ratio is 1.11, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.52, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.52% of Conagra Brands Inc (CAG)’s shares, while financial institutions hold 86.76%.
Notable insider trades include McGough Thomas M, EVP & COO at Conagra Brands Inc (CAG), who sold 40000 shares on Aug 13 ’24, at $30.29 each, totaling $1.21 million. On May 23 ’24, Brock Charisse, EVP, Chief HR Officer, sold 15444 shares for $30.37 each, amounting to $0.47 million.
