Conagra stock hits 52-week low at $22.37 amid market challenges

Published 22/05/2025, 14:34
Conagra stock hits 52-week low at $22.37 amid market challenges

Conagra Foods , a major player in the packaged foods industry with a market capitalization of $10.7 billion, has seen its stock price touch a 52-week low, dipping to $22.37. This latest price level reflects a significant downturn from the company’s performance over the past year, with Conagra Foods experiencing a 1-year change of -26.15%. According to InvestingPro analysis, the stock appears undervalued at current levels, while maintaining an impressive 6.23% dividend yield. The decline in stock value comes amidst a complex backdrop of market pressures, including shifting consumer trends and supply chain disruptions that have challenged the food sector at large. Despite revenue declining 3.15% over the last twelve months, the company has maintained its dividend payments for 50 consecutive years. Investors and analysts are closely monitoring the company’s strategies for recovery and adaptation in a rapidly evolving industry landscape. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report for deeper analysis of Conagra’s financial health and future prospects.

In other recent news, Conagra Brands (NYSE:CAG), Inc. has announced the sale of its Chef Boyardee brand to Hometown Food Company for $600 million, a transaction expected to finalize in the first quarter of Conagra’s fiscal year 2026. This strategic divestiture is aimed at reshaping Conagra’s portfolio to focus on growth areas such as frozen and healthy-snacking sectors. The sale is anticipated to dilute Conagra’s adjusted earnings per share by approximately four percent for fiscal year 2025. Additionally, Conagra has secured a new $200 million term loan with Mizuho (NYSE:MFG) Bank and extended an existing $300 million loan with Bank of America, providing increased liquidity and flexibility. In financial performance, Conagra’s recent earnings report revealed a revenue shortfall, with earnings per share at $0.51, missing expectations by 2 cents. Revenue reached $2.841 billion, falling short by 2.0%, and organic sales growth declined by 5.2% year-over-year. Analysts at Citi have adjusted their outlook on Conagra, maintaining a Neutral rating but lowering the price target from $27.00 to $25.00 due to a more conservative earnings forecast. Meanwhile, Bernstein analysts have kept a Market Perform rating with a $28.00 price target, despite the recent financial misses, citing confidence in Conagra’s defensive market position.

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