CAG Stock Crashes To Near 17-Year Lows, But Retail Sees ‘Buying Opportunity Of A Decade’

• Former J.M. Smucker President and Chief Operating Officer, John Brase, will replace Connolly.
• Earlier this month, Conagra Brands narrowed its full-year guidance for organic sales and earnings per share.
• BNP Paribas downgraded Conagra Brands to ‘Neutral’ from ‘Outperform’ and cut its price target to $16 from $19, according to The Fly.

Shares of Conagra Brands Inc. (CAG) fell more than 5% on Monday to their lowest level since May 2009 as longtime CEO Sean Connolly stepped down after more than a decade at the helm.

CAG stock is on track for a third straight session of losses and has shed around 9% so far in April.

Former President and Chief Operating Officer of J.M. Smucker Co. (SJM), John Brase, will replace Connolly, the company said. He led the company’s U.S. retail, international, and Away from Home segments. Prior to his stint at SJM, Brase spent nearly 30 years at Procter & Gamble, where he was eventually promoted to Senior Vice President and General Manager of the North America Family Care business.

Conagra Cuts Fiscal 2026 Guidance

Conagra Brands narrowed its fiscal 2026 outlook, expecting organic sales to land near the midpoint of its -1% to 1% range and operating margins to be toward the high end of its 11% to 11.5% target. The company now sees adjusted earnings per share (EPS) at around $1.70, the low end of its guidance range.

In the third quarter (Q3), net sales fell 1.9% to $2.8 billion, while adjusted EPS fell 23.5% to $0.39. Analysts expect fourth-quarter (Q4) revenue of about $2.9 billion, according to Fiscal.ai data. 

Last week, BNP Paribas downgraded Conagra Brands to ‘Neutral’ from ‘Outperform’ and cut its price target to $16 from $19, according to The Fly. The stock is currently trading just above $14.

While U.S. packaged food stocks appear cheap historically, the firm said that they are “cheap for a reason” as valuations reflect weak fundamentals, citing sluggish volume growth and pricing power that may not be sustainable.

How Did Retail Traders React?

Retail sentiment remained ‘bearish’ over the past 24 hours on Stocktwits.

One user expects the new CEO’s first decision to be to lower the dividend. The company paid out a dividend of $0.35 per share in the third quarter.

Another user sees the “buying opportunity of a decade.”

Year-to-date, the stock has fallen 17%.

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