Strong Sector-Wide Grocery Performance Monday Leads Director To Add Shares

This year has already seen some merger and acquisition chatter in the retail food distribution and grocery space. Recently, RBC analysts David Palmer and Kevin Lehmann suggested Pinnacle Foods PF has the potential to be a takeover target for Conagra Brands Inc CAG citing four key factors:

1. Pinnacle being ready to sell itself.
2. Conagra’s management having intimate knowledge of Pinnacle’s business.
3. Integration between the two would be the most high-synergy in food.
4. The merger could add 16 percent to Conagra’s EPS.

Monday's Movements

Grocer and distribution stocks saw some upward momentum in trading on Monday:

• G Willi-Food International Ltd WILC: Up 5.6 percent.
• SpartanNash Co SPTN: Up 4.6 percent.
• Sprouts Farmers Market Inc SFM: Up 2.3 percent.
• SUPERVALUE INC. SVU: Up 7.5 percent.
• United Natural Foods, Inc. UNFI: Up 6 percent.
• US Foods Holding Corp USFD: Up 3.8 percent.
• Weis Markets, Inc. WMK: Up 2.8 percent.

Tuesday, Pinnacle Foods CEO Mark Clouse bought 10,000 shares at $47.64/shares ($476,400), bringing his total stake to 105,057 shares.

This week has also seen two large option calls for Whole Foods Market, Inc. WFM, which were compiled by Benzinga Pro:

• Option Alert: WFM Feb17 34.0 Calls Sweep: 583 @ ASK $1.239: 584 traded vs 302 OI: Earnings 2/8 After Close (est) $31.71 Ref.
• Option Alert: WFM Nov16 33.0 Calls Sweep: 500 @ ASK $0.29: 1382 traded vs 6125 OI: Earnings 2/8 After Close (est) $32.04 Ref.