ConAgra Foods, Inc. (CAG): Are Hedge Funds Right About This Stock?

Is ConAgra Foods, Inc. (NYSE:CAG) a buy?

To many of your peers, hedge funds are perceived as useless, outdated financial vehicles of a period lost to current times. Although there are more than 8,000 hedge funds trading in present day, Insider Monkey aim at the masters of this club, close to 525 funds. It is assumed that this group controls most of all hedge funds’ total capital, and by paying attention to their highest quality stock picks, we’ve deciphered a few investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).

Equally as crucial, bullish insider trading sentiment is a second way to analyze the stock market universe. As the old adage goes: there are many motivations for an executive to cut shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the valuable potential of this tactic if investors know what to do (learn more here).

What’s more, we’re going to examine the recent info surrounding ConAgra Foods, Inc. (NYSE:CAG).

Hedge fund activity in ConAgra Foods, Inc. (NYSE:CAG)

Heading into Q3, a total of 32 of the hedge funds we track held long positions in this stock, a change of 7% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes significantly.

ConAgra Foods, Inc. (NYSE:CAG)When using filings from the hedgies we track, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the most valuable position in ConAgra Foods, Inc. (NYSE:CAG). Adage Capital Management has a $199.2 million position in the stock, comprising 0.6% of its 13F portfolio. The second largest stake is held by Diamond Hill Capital, managed by Ric Dillon, which held a $183.5 million position; 2% of its 13F portfolio is allocated to the company. Remaining hedge funds with similar optimism include Ken Griffin’s Citadel Investment Group, Jim Simons’s Renaissance Technologies and Israel Englander’s Millennium Management.

With a general bullishness amongst the titans, specific money managers have jumped into ConAgra Foods, Inc. (NYSE:CAG) headfirst. Adage Capital Management, managed by Phill Gross and Robert Atchinson, created the most outsized position in ConAgra Foods, Inc. (NYSE:CAG). Adage Capital Management had 199.2 million invested in the company at the end of the quarter. Ric Dillon’s Diamond Hill Capital also initiated a $183.5 million position during the quarter. The other funds with brand new CAG positions are Ken Griffin’s Citadel Investment Group, Jim Simons’s Renaissance Technologies, and Israel Englander’s Millennium Management.

What do corporate executives and insiders think about ConAgra Foods, Inc. (NYSE:CAG)?

Insider buying is at its handiest when the company we’re looking at has experienced transactions within the past six months. Over the latest half-year time frame, ConAgra Foods, Inc. (NYSE:CAG) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to ConAgra Foods, Inc. (NYSE:CAG). These stocks are McCormick & Company, Incorporated (NYSE:MKC), Kellogg Company (NYSE:K), The J.M. Smucker Company (NYSE:SJM), Mead Johnson Nutrition CO (NYSE:MJN), and Campbell Soup Company (NYSE:CPB). This group of stocks belong to the processed & packaged goods industry and their market caps are closest to CAG’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
McCormick & Company, Incorporated (NYSE:MKC) 13 0 0
Kellogg Company (NYSE:K) 17 0 0
The J.M. Smucker Company (NYSE:SJM) 20 0 0
Mead Johnson Nutrition CO (NYSE:MJN) 42 0 0
Campbell Soup Company (NYSE:CPB) 20 0 0

Using the results explained by our research, average investors should always pay attention to hedge fund and insider trading activity, and ConAgra Foods, Inc. (NYSE:CAG) is an important part of this process.

Discover how hedge fund piggybacking can benefit you

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!