Conagra Brands Inc. (CAG): Technicals Say You should Hold

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Conagra Brands Inc. (NYSE:CAG) saw a downside of -0.45% to close Tuesday at $37.26 after subtracting -$0.17 on the day. The 5-day average trading volume is 4,347,560 shares of the company’s common stock. It has gained $39.98 in the past week and touched a new high 1 time within the past 5 days. An average of 4,306,870 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,949,372.

CAG’s 1-month performance is -3.92% or -$1.58 on its low of $37.19 reached on 01/24/23. The company’s shares have touched a 52-week low of $30.06 and high of $41.30, with the stock’s rally to the 52-week high happening on 01/09/23. YTD, CAG has lost -3.72% or -$1.44 and has reached a new high 5 times. However, the current price is down -9.78% from the 52-week high price.


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Insider Transactions

CAG stock investors last saw insider trading activity on Jan 06.Wise Robert G (SVP, Corporate Controller) most recently sold 50,000 shares at $40.90 per share on Jan 06. This transaction cost the insider $2,045,000. EVP, GC and Corp. Secretary, Bartell Carey, sold 6,408 shares at a price of $34.50 on Oct 18. Then, on Aug 17, EVP & Co-COO McGough Thomas M sold 21,405 shares at a price of $35.40 per share. This transaction amounted to $757,737.

Valuation Metrics

CAG stock has a beta of 0.57. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 1.49 while the price-to-book (PB) in the most recent quarter is 2.06, with the price to cash flow ratio at 85.50.

Conagra Brands Inc.’s quick ratio for the period ended November 29 was 0.30, with the current ratio over the same period at 0.90. As well, the company’s long term debt to equity for the quarter ending November 29 was 0.93, while the total debt to equity was 1.08.. In terms of profitability, the gross margin trailing 12 months is 25.40%. The firm’s gross profit as reported stood at $2.84 billion against revenue of $11.54 billion.

Earnings Surprise

For the quarterly period ending November 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected CAG to announce $0.66 per share in earnings in its latest quarter, but it posted $0.81, representing a 22.70% surprise. EBITDA for the quarter stood at more than $648.2 million. CAG stock balance sheet for the quarter ending November 29 shows that total liabilities totaled 13.68 billion, with total debt at $9.65 billion. Shareholders hold equity totaling $476.62 million.

Let’s look briefly at Conagra Brands Inc. (CAG) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 26.13% to suggest the stock is trending oversold, with historical volatility in this time period at 17.78%.

The stock’s 5-day moving average is $37.88, reflecting a -6.92% or -$2.77 change from its current price. CAG is currently trading -3.87% above its 20-day SMA, +7.22% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +4.87% and SMA200 by+8.50%.

Stochastic %K and %D was 5.65% and 6.34% and the average true range (ATR) pointed at 0.74. The RSI (14) points at 35.79%, while the 14-day stochastic is at 1.70% with the period’s ATR at 0.73. The stock’s 9-day MACD Oscillator is pointing at -1.33 and -1.76 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Conagra Brands Inc. (NYSE: CAG), Morgan Stanley upgraded it to an Overweight rating. They previously had an Equal-weight rating on the stock. Analysts offering their rating for CAG stock have a consensus rating for the stock as Overweight. Currently, 1 brokerage advisors rate CAG as a “sell,”, while 10 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 2 rates the stock as overweight while 5 have offered a “buy” rating.

What is CAG’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $35.00 and a high of $48.00, with their median price target at $42.50. Looking at these predictions, the average price target given by analysts is for Conagra Brands Inc. (CAG) stock is $41.75.

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