Hormel Foods (NYSE:HRL) Sets New 12-Month Low – What’s Next?

Hormel Foods Co. (NYSE:HRL) shares reached a new 52-week low on Thursday . The stock traded as low as $28.27 and last traded at $28.43, with a volume of 299706 shares. The stock had previously closed at $28.53.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the stock. Citigroup cut their target price on shares of Hormel Foods from $36.00 to $35.00 and set a “buy” rating on the stock in a research note on Tuesday, November 19th. Barclays upgraded shares of Hormel Foods from a “hold” rating to a “strong-buy” rating in a report on Wednesday, January 22nd. Finally, 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. Two analysts have rated the stock with a sell rating, two have issued a hold rating, one has assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, Hormel Foods has a consensus rating of “Hold” and a consensus price target of $31.17.

Hormel Foods Stock Down 0.3 %

The stock has a market cap of $15.63 billion, a PE ratio of 19.50, a price-to-earnings-growth ratio of 2.74 and a beta of 0.26. 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 company’s 50-day moving average price is $30.83 and its 200 day moving average price is $31.30.

Hormel Foods (NYSE:HRL) last announced its quarterly earnings data on Wednesday, December 4th. The company reported $0.42 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.01). The company had revenue of $3.14 billion for the quarter, compared to analysts’ expectations of $3.14 billion. Hormel Foods had a net margin of 6.75% and a return on equity of 10.95%. The company’s quarterly revenue was down 1.9% compared to the same quarter last year. During the same period last year, the business earned $0.42 earnings per share. As a group, analysts forecast that Hormel Foods Co. will post 1.66 EPS for the current fiscal year.

Hormel Foods Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, February 18th. Investors 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 represents a $1.16 dividend on an annualized basis and a yield of 4.08%. This is a positive change from Hormel Foods’s previous quarterly dividend of $0.28. Hormel Foods’s dividend payout ratio is currently 79.45%.

Insider Activity at Hormel Foods

In other news, VP Steven J. Lykken acquired 4,904 shares of Hormel Foods stock in a transaction that occurred on Friday, December 6th. The stock was purchased at an average cost of $32.47 per share, with a total value of $159,232.88. Following the purchase, the vice president now owns 7,100 shares in the company, valued at $230,537. This trade represents a 223.32 % increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.72% of the stock is owned by insiders.

Hedge Funds Weigh In On Hormel Foods

Hedge funds have recently modified their holdings of the business. Crews Bank & Trust acquired a new position in Hormel Foods during the fourth quarter worth approximately $25,000. Brooklyn Investment Group purchased a new stake in shares of Hormel Foods in the third quarter valued at approximately $32,000. Prospera Private Wealth LLC purchased a new stake in Hormel Foods during the third quarter worth $39,000. GAMMA Investing LLC boosted its position in Hormel Foods by 516.9% during the third quarter. GAMMA Investing LLC now owns 1,351 shares of the company’s stock worth $43,000 after purchasing an additional 1,132 shares in the last quarter. Finally, Fairway Wealth LLC purchased a new stake in Hormel Foods during the fourth quarter worth $44,000. 40.99% of the stock is currently owned by hedge funds and other institutional investors.

Hormel Foods Company Profile

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.