Hormel Foods Co. (NYSE:HRL) Short Interest Up 6.8% in December

Hormel Foods Co. (NYSE:HRL) saw a significant increase in short interest in the month of December. As of December 31st, there was short interest totalling 11,790,000 shares, an increase of 6.8% from the December 15th total of 11,040,000 shares. Based on an average daily volume of 2,320,000 shares, the short-interest ratio is presently 5.1 days. Approximately 4.1% of the company’s shares are sold short.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. Citigroup reduced their price target on shares of Hormel Foods from $36.00 to $35.00 and set a “buy” rating for the company in a report on Tuesday, November 19th. BNP Paribas initiated coverage on shares of Hormel Foods in a research note on Monday, October 21st. They issued an “underperform” rating and a $28.00 target price for the company. Finally, Stephens started coverage on Hormel Foods in a research note on Thursday, October 3rd. They issued an “equal weight” rating and a $31.00 price target on the stock. Two analysts have rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $31.00.

Hormel Foods Stock Performance

NYSE:HRL traded up $0.04 during mid-day trading on Friday, hitting $29.93. The stock had a trading volume of 2,515,109 shares, compared to its average volume of 1,918,130. Hormel Foods has a twelve month low of $28.51 and a twelve month high of $36.86. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.19 and a current ratio of 2.32. The stock has a market cap of $16.43 billion, a price-to-earnings ratio of 20.50, a PEG ratio of 2.85 and a beta of 0.26. The company’s 50 day simple moving average is $31.28 and its 200 day simple moving average is $31.46.

Hormel Foods (NYSE:HRL) last released its quarterly earnings data on Wednesday, December 4th. The company reported $0.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.43 by ($0.01). Hormel Foods had a net margin of 6.75% and a return on equity of 10.95%. The business had revenue of $3.14 billion during the quarter, compared to the consensus estimate of $3.14 billion. During the same quarter in the prior year, the company earned $0.42 EPS. Hormel Foods’s quarterly revenue was down 1.9% on a year-over-year basis. On average, equities research analysts forecast that Hormel Foods will post 1.65 earnings per share for the current year.

Hormel Foods Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 18th. Stockholders of record on Monday, January 13th will be given a $0.29 dividend. The ex-dividend date of this dividend is Monday, January 13th. This is a positive change from Hormel Foods’s previous quarterly dividend of $0.28. This represents a $1.16 annualized dividend and a dividend yield of 3.88%. Hormel Foods’s dividend payout ratio is presently 77.40%.

Insiders Place Their Bets

In other Hormel Foods news, VP Steven J. Lykken acquired 4,904 shares of the firm’s stock in a transaction that occurred on Friday, December 6th. The stock was acquired at an average cost of $32.47 per share, for a total transaction of $159,232.88. Following the transaction, the vice president now owns 7,100 shares of the company’s stock, valued at $230,537. This trade represents a 223.32 % increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.72% of the company’s stock.

Institutional Trading of Hormel Foods

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Brooklyn Investment Group bought a new stake in shares of Hormel Foods during the third quarter worth approximately $32,000. Prospera Private Wealth LLC acquired a new stake in Hormel Foods during the 3rd quarter worth approximately $39,000. GAMMA Investing LLC boosted its stake in Hormel Foods by 516.9% in the 3rd quarter. GAMMA Investing LLC now owns 1,351 shares of the company’s stock valued at $43,000 after purchasing an additional 1,132 shares during the period. Capital Performance Advisors LLP acquired a new position in Hormel Foods in the 3rd quarter valued at $47,000. Finally, McIlrath & Eck LLC increased its position in Hormel Foods by 47.5% during the 3rd quarter. McIlrath & Eck LLC now owns 1,981 shares of the company’s stock worth $63,000 after buying an additional 638 shares during the period. Institutional investors own 40.99% of the company’s stock.

About Hormel Foods

Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and other food products to retail, foodservice, deli, and commercial customers in the United States and internationally. It operates through three segments: Retail, Foodservice, and International segments. The company provides various perishable products that include fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons; and shelf-stable products comprising canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and others.