Hormel Foods Co. (NYSE:HRL) Given Consensus Rating of “Reduce” by Brokerages

Shares of Hormel Foods Co. (NYSE:HRL) have received a consensus rating of “Reduce” from the seven ratings firms that are covering the firm, Marketbeat.com reports. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating and one has issued a buy rating on the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $31.29.

HRL has been the subject of several recent analyst reports. BNP Paribas started coverage on shares of Hormel Foods in a research report on Monday, October 21st. They set an “underperform” rating and a $28.00 price objective for the company. 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 research report on Tuesday, November 19th. Finally, Stephens started coverage on Hormel Foods in a report on Thursday, October 3rd. They set an “equal weight” rating and a $31.00 price objective on the stock.

Hormel Foods Price Performance

Hormel Foods stock opened at $31.91 on Thursday. The company has a current ratio of 2.29, a quick ratio of 1.03 and a debt-to-equity ratio of 0.36. The company has a fifty day simple moving average of $31.00 and a 200-day simple moving average of $31.66. The stock has a market cap of $17.50 billion, a P/E ratio of 22.47, a price-to-earnings-growth ratio of 3.33 and a beta of 0.26. Hormel Foods has a 12-month low of $28.51 and a 12-month high of $36.86.

Hormel Foods (NYSE:HRL) last released its quarterly earnings data on Wednesday, September 4th. The company reported $0.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.01. Hormel Foods had a return on equity of 11.03% and a net margin of 6.52%. The business had revenue of $2.90 billion during the quarter, compared to analysts’ expectations of $2.95 billion. During the same period in the prior year, the firm posted $0.40 EPS. The business’s quarterly revenue was down 2.2% compared to the same quarter last year. Equities analysts expect that Hormel Foods will post 1.58 EPS for the current fiscal year.

Hormel Foods Increases Dividend

The company also recently disclosed 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. This represents a $1.16 dividend on an annualized basis and a yield of 3.64%. This is a positive change from Hormel Foods’s previous quarterly dividend of $0.28. The ex-dividend date of this dividend is Monday, January 13th. Hormel Foods’s dividend payout ratio (DPR) is 79.58%.

Insiders Place Their Bets

In other news, SVP Kevin L. Myers sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, September 18th. The stock was sold at an average price of $32.70, for a total value of $327,000.00. Following the completion of the sale, the senior vice president now directly owns 39,050 shares of the company’s stock, valued at $1,276,935. This trade represents a 20.39 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Deanna T. Brady sold 51,600 shares of the company’s stock in a transaction on Friday, September 13th. The stock was sold at an average price of $31.95, for a total value of $1,648,620.00. Following the transaction, the executive vice president now directly owns 72,421 shares in the company, valued at $2,313,850.95. This represents a 41.61 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 71,400 shares of company stock worth $2,288,338. 0.69% of the stock is owned by insiders.

Institutional Investors Weigh In On Hormel Foods

Several institutional investors have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC boosted its holdings in Hormel Foods by 688.3% during the first quarter. EverSource Wealth Advisors LLC now owns 741 shares of the company’s stock worth $26,000 after buying an additional 647 shares in the last quarter. Brooklyn Investment Group acquired a new stake in shares of Hormel Foods in the 3rd quarter worth approximately $32,000. International Assets Investment Management LLC purchased a new position in Hormel Foods in the 2nd quarter valued at approximately $34,000. Central Valley Advisors LLC acquired a new position in Hormel Foods during the second quarter worth $37,000. Finally, Prospera Private Wealth LLC purchased a new stake in Hormel Foods during the third quarter worth $39,000. 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.