|Over a week ago|
U.S. probes soaring beef prices, Politico reports » 14:0905/2605/26/20
TSN, CAG, PPG, SAFM, HRL
The U.S. Agriculture…
The U.S. Agriculture Department and prosecutors are investigating whether the meatpacking industry is fixing or manipulating prices, Politico's Leah Nylen and Liz Crampton report. According to a person with knowledge of the investigation, the DOJ is looking at the four largest U.S. meatpackers -- Tyson Foods (TSN), JBS, National Beef and Cargill -- which collectively control about 85% of the U.S. market for the slaughter and packaging of beef, and the USDA is also investigating the beef price fluctuations, Agriculture Secretary Sonny Perdue has confirmed. Other publicly traded companies in the meat production space include Conagra Brands (CAG), Pilgrim's Pride (PPC), Sanderson Farms (SAFM) and Hormel Foods (HRL). Reference Link
Conagra Brands continues deleveraging process » 08:4805/2105/21/20
Conagra Brands announced…
Conagra Brands announced "continued progress" against its deleveraging efforts. Conagra will pre-pay, effective May 29, the remaining $275M outstanding under its senior floating rate notes due October 22. Conagra has also obtained a $600M senior three-year unsecured term loan which can be drawn, in full or in part, through October 2020 with opening pricing of LIBOR plus 150 basis points. This facility provides Conagra with the liquidity to repay, along with cash on hand, the company's debt maturities in FY21. Farm Credit Services of America and Farm Credit Bank of Texas served as Co-Lead Arrangers for the financing with Farm Credit Services of America serving as the Administrative Agent. Pro forma for the repayment of the $275M in senior floating rate notes, Conagra will have reduced total gross debt by over $1.8B since the closing of the Pinnacle acquisition in October 2018. The company remains confident it will achieve its FY21 net debt to trailing 12 months adjusted EBITDA leverage ratio target of 3.6-3.5.
Conagra Brands downgraded to Hold from Buy at Standpoint Research » 15:4305/1805/18/20
Standpoint Research analyst Ronnie Moas downgraded Conagra Brands to Hold from Buy.
Conagra Brands to provide additional $7M in cash bonuses to eligible employees » 07:3605/1805/18/20
Conagra Brands announced…
Conagra Brands announced it will provide an additional $7M in cash bonuses to eligible employees at each of the company's 50 production and distribution facilities across the U.S., Mexico and Canada. This additional bonus is in recognition of these team members' continued, unwavering commitment to make Conagra Brands food available to consumers during the COVID-19 pandemic. To date, the company has committed more than $13M in special bonuses for front-line employees. Since the COVID-19 epidemic began, Conagra Brands has implemented additional preventative measures beyond its existing health and safety procedures to help reduce the spread of the virus. The company implemented social distancing practices, such as installing plexiglass barriers between work stations where people work less than six feet apart. The company is also staggering shift start and stop times, screening employee temperatures using face masks and shields in the company's facilities and reformatting breakrooms while limiting conference room usage. CThe company is maintaining plant maintenance and sanitation processes. In addition, Conagra Brands is continuing to pay any employee who needs to be away from work due to a COVID-19-related production suspension or illness.
Jana takes new stakes in Hillenbrand, New Relic during first quarter » 08:5405/1505/15/20
HI, NEWR, ZBH, WMGI, AXTA, JACK, BLMN, CAG, ELY, SPY, HDS
Barry Rosenstein's Jana Partners disclosed in a regulatory filing its holdings as of March 31, 2020. Jana made two new buys during the first quarter: it bought 3.66M shares of Hillenbrand (HI) and 846,872 shares of New Relic (NEWR). The fund exited two positions in the quarter, selling 350,000 shares of Zimmer Biomet (ZBH) and 648,445 shares of Wright Medical Group (WMGI). Jana increased its stake in three positions, buying more of Axalta Coating (AXTA), Jack in the Box (JACK) and Bloomin' Brands (BLMN). The fund reduced its stake in four holdings: Conagra Brands (CAG), Callaway Golf (ELY), SPDR S&P 500 ETF Trust (SPY) and HD Supply Holdings (HDS). Jana's top holdings as of March 31, in order of size, were Conagra Brands, Hillenbrand, Callaway Golf, SPDR S&P 500 ETF Trust and Axalta.
Conagra Brands downgraded to Hold from Buy at SunTrust » 07:1505/1105/11/20
SunTrust analyst Bill…
SunTrust analyst Bill Chappell downgraded Conagra Brands to Hold from Buy with an unchanged $35 price target. The positive trends related to COVID-19 are now reflected well by the stock performance over the past two months, the analyst tells investors in a research note. Chappell is also concerned that the impending recession makes much of the company's brand portfolio vulnerable to consumer trade-down to private label.
Conagra Brands downgraded to Hold from Buy at SunTrust » 06:1405/1105/11/20
SunTrust analyst Bill…
SunTrust analyst Bill Chappell downgraded Conagra Brands to Hold from Buy.
|Over a month ago|
Week in Review: How Trump's policies moved stocks » 08:3705/0205/02/20
CMCSA, CMCSK, TSN, CAG, PPC, SAFM, HRL, GILD, ACM, CBI, CAT, EXP, FLR, GVA, MLM, PWR, J, USCR, VMC
Catch up on the top…
Food-plant workers, employers clash over coronavirus safety, WSJ reports » 06:1704/3004/30/20
TSN, CAG, PPC, SAFM, HRL
Tensions are escalating…
Tensions are escalating at food plants between essential workers who feel pressure to continue working through the coronavirus pandemic and their employers, who are seeking to maintain the country's food supply chain without interruption, The Wall Street Journal's Kris Maher, Jacob Bunge and Alexandra Berzon report. President Trump on Tuesday invoked a Korean War-era law to keep meat plants open, as fears within the administration grew over mounting closures, saying closures "threaten the continued functioning of the national meat and poultry supply chain, undermining critical infrastructure during the national emergency." Publicly traded companies in the meat production space include Tyson Foods (TSN), Conagra Brands (CAG), Pilgrim's Pride (PPC), Sanderson Farms (SAFM) and Hormel Foods (HRL). Reference Link
Fly Intel: Wall Street's top stories for Tuesday » 16:4804/2804/28/20
BA, MMM, CAT, UPS, MRK, PFE, PEP, MNST, TSN, CAG, PPC, SAFM, HRL, SNDX, FFIV, CGNX, BPMC, HLIT, LRN
The major averages were…