July 9, 2008

ConAgra's management increase ownership of company stock

The chief executive of ConAgra Inc. (CAG) and other company insiders have stepped up their purchases of shares in the food maker recently, according to regulatory filings.

The purchases by CEO Gary Rodkin and the others, made in open-market transactions, come as Omaha-based ConAgra is looking to boost performance in its consumer food business and buying back US$900 million of stock with proceeds from its just-divested agricultural-commodities trading unit.

The stock purchases were made days after ConAgra's shares hit a 52-week low. They're down 16 percent so far this year, a bit more than the decline for the S&P 500.

In afternoon trading Tuesday, ConAgra shares rose 2.4percent to US$20.10.

Combined, five executives on July 3 purchased 33,200 shares worth more than $647,000, according to Securities and Exchange Commission filings late Monday.

Robert Sharpe, executive vice president, made the single largest purchase: 12,000 shares at $19.42 each.

This isn't the first time this year ConAgra insiders have augmented their ownership in the food company. Rodkin, Hawaux, and Sharpe all bought stock in smaller amounts between March 31 and April 2.

ConAgra, is rolling out a new wave of products over the coming months as part of a strategy of focusing on its best-selling pasta brands.

The food company had a late start raising prices when commodity prices rose and is now making up for lost time by accelerating price increases.