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Conagra Foods stock recently reached a 52-week low, touching a price of 21.13 USD. According to InvestingPro analysis, the stock appears undervalued at current levels, while offering an attractive 6.52% dividend yield with a 50-year history of consistent payments. This milestone reflects a significant downturn for the company, as its stock has experienced a 24.68% decrease over the past year. Despite the challenges faced by Conagra Foods in the current market environment, InvestingPro data shows expected net income growth and a strong free cash flow yield, suggesting potential resilience amid economic pressures and shifting consumer preferences. Investors will be closely monitoring the company’s strategies to regain momentum and improve its financial standing in the coming months, with earnings results expected on July 10.
In other recent news, Conagra Brands (NYSE:CAG) has reported several significant developments. The company has agreed to sell its Van de Kamp’s and Mrs. Paul’s frozen seafood brands to High Liner Foods for $55 million. This transaction, expected to close by the end of July 2025, will slightly reduce Conagra’s fiscal year 2026 adjusted earnings per share by one cent, while contributing to debt reduction. Meanwhile, Goldman Sachs downgraded Conagra’s stock rating from Neutral to Sell, citing margin concerns due to tariffs and rising input costs. The firm set a new price target of $21, down from $26, and projected an earnings per share of $2.10 for fiscal year 2026, below the consensus estimate of $2.35.
Additionally, UBS initiated coverage of Conagra with a neutral rating and a $22 price target, highlighting a balanced risk-reward profile despite organic growth challenges. TD Cowen also lowered its price target for Conagra to $20.50 from $22, maintaining a Hold rating, and noted structural concerns such as lack of pricing power and supply chain disruptions. In corporate governance news, Conagra announced that board member Fran Horowitz will step down at the 2025 Annual Meeting of Shareholders. These developments reflect the company’s ongoing efforts to navigate economic pressures and strategic adjustments.
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