Insider Trading Report: Conagra Brands (CAG)

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  • Richard Lenny, a director at Conagra Brands (CAG), recently picked up 10,000 shares. The buy increased his stake by just over 10 percent, and came to a total cost of $337,000.

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  • This marks the first insider buy at the company in a year. Insiders have generally been sellers of shares, mostly at the C-suite level. The company’s general counsel has been the most active seller of shares here.

    Over the past year, shares have traded flat at the food processing giant, even as earnings have risen 45 percent and revenue has risen 6 percent. Trading at 15 times earnings, and with shares down over 10 percent from a high set back in August, the insider buy here looks like a reasonable value here.

    Action to take: Investors may like shares here, as the company just raised its annual dividend and shares yield 3.3 percent.

    For traders, shares have recently dropped to oversold levels, making for an attractive entry point, although there may be some more short-term downside. The June 2021 $33 calls are an at-the-money trade going for about $2.20 that should rally in time. Traders may want to buy some now, and look to add to their holdings in the coming days under $2.00, should the option price drop that far.

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