Shares of Conagra Brands, Inc. (NYSE:CAG) recorded 0.65% gain during trading session on January 11th, 2019. The script traded as low as $21.09 and last traded at $21.61. 8.43 million shares changed exchanged hands during trading, a drop of -1.16% from the 30-day average session volume of 8.33M shares. The firm had previously closed at $21.47. The company has $482.49M outstanding shares, a price-to-earnings ratio of 17.55, price-to-earnings-growth ratio of 1.27and a beta of 0.66. The company has a RSI of 24.64, ATR of 0.98 and a volatility of 3.43% this week. CAG has a 52 week low price of $20.22 and a 52 week high price of $39.43.
Investors have identified the tech 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 10.43B, 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 442.3 million on their books with 177 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 0 total, with 4.89 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
CAG were able to record 128.6 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 314.3 million. In cash movements, the company had a total of 261.9 million 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 third quarter of the year, Conagra Brands, Inc. recorded a total of 2.38 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.09% coming in sequential stages and their sales for the third quarter increasing by 0.23%.
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 1.71 billion trying to sell their products during the last quarter, with the result yielding a gross income of 677.2 million. This allows shareholders to hold on to 482.49M with the revenue now reading 310 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.44 cents a share).
Is the stock of CAG attractive?
Having a look at the company’s valuation, the company is expected to record 2.27 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.
In related news, President and CEO Connolly Sean bought 14,184 shares of the company’s stock in a transaction that recorded on October 12th, 2019. The purchase was performed at an average price of 35.25, for a total value of 499,986. As the purchase deal closes, the EVP and CFO Connolly Sean now bought 2,836 shares of the company’s stock, valued at 99,969. Also, Director BROWN THOMAS K bought 7,092 shares of the company’s stock in a deal that was recorded on October 12th, 2019. The shares were bought at an average cost of 35.25 per share, with a total market value of 26,477. Following this completion of disposal, the EVP Gen Counsel & Corp Secty now holds 22,750 shares of the company’s stock, valued at 819,000. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.
5 out of 12 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on Conagra Brands, Inc. stock. 0 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 $32.77.