Hormel Foods (NYSE:HRL) Shares Gap Up Following Earnings Beat

Hormel Foods Corporation (NYSE:HRL) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $20.96, but opened at $22.97. Hormel Foods shares last traded at $22.7820, with a volume of 1,239,590 shares changing hands.

The company reported $0.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.05. Hormel Foods had a net margin of 4.03% and a return on equity of 9.38%. The business had revenue of $2.97 billion for the quarter, compared to analysts’ expectations of $2.96 billion. During the same period in the prior year, the company posted $0.35 EPS. The business’s revenue for the quarter was up 2.6% compared to the same quarter last year.

Hormel Foods Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 17th. Investors of record on Monday, July 13th will be given a $0.2925 dividend. This represents a $1.17 dividend on an annualized basis and a dividend yield of 5.1%. The ex-dividend date is Monday, July 13th. Hormel Foods’s dividend payout ratio (DPR) is 131.46%.

Analyst Upgrades and Downgrades

HRL has been the topic of a number of research analyst reports. Weiss Ratings restated a “sell (d+)” rating on shares of Hormel Foods in a research note on Tuesday, April 21st. The Goldman Sachs Group set a $25.00 price target on Hormel Foods in a research report on Thursday, May 21st. Stephens set a $22.00 price objective on Hormel Foods and gave the stock an “equal weight” rating in a report on Thursday, May 21st. Finally, JPMorgan Chase & Co. restated a “neutral” rating and issued a $23.00 price objective (down from $28.00) on shares of Hormel Foods in a research report on Thursday, April 9th. Three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $25.33.

Institutional Investors Weigh In On Hormel Foods

A number of large investors have recently added to or reduced their stakes in HRL. Vanguard Group Inc. boosted its holdings in shares of Hormel Foods by 2.0% in the 3rd quarter. Vanguard Group Inc. now owns 37,595,843 shares of the company’s stock worth $930,121,000 after purchasing an additional 729,942 shares in the last quarter. State Street Corp raised its holdings in shares of Hormel Foods by 1.0% during the 3rd quarter. State Street Corp now owns 28,338,645 shares of the company’s stock valued at $701,098,000 after buying an additional 269,941 shares in the last quarter. Invesco Ltd. lifted its position in Hormel Foods by 66.5% in the 3rd quarter. Invesco Ltd. now owns 11,331,941 shares of the company’s stock worth $280,352,000 after buying an additional 4,526,167 shares during the last quarter. Geode Capital Management LLC boosted its stake in Hormel Foods by 0.8% in the fourth quarter. Geode Capital Management LLC now owns 8,080,832 shares of the company’s stock worth $190,805,000 after buying an additional 63,583 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its stake in Hormel Foods by 2.0% in the first quarter. Dimensional Fund Advisors LP now owns 6,849,174 shares of the company’s stock worth $155,152,000 after buying an additional 134,983 shares in the last quarter. Hedge funds and other institutional investors own 40.99% of the company’s stock.

Hormel Foods Price Performance

The firm has a market capitalization of $12.60 billion, a P/E ratio of 25.79, a PEG ratio of 2.87 and a beta of 0.33. The business’s 50-day simple moving average is $21.39 and its 200 day simple moving average is $22.96. The company has a quick ratio of 1.37, a current ratio of 2.66 and a debt-to-equity ratio of 0.36.

Hormel Foods Company Profile

Hormel Foods Corporation is a global branded foods company primarily engaged in the production, marketing and distribution of value-added, high-quality meat and food products. The company’s portfolio spans a range of categories including refrigerated and frozen meats, pantry staples, specialty foods and shelf-stable items. Through manufacturing facilities located across North America and international markets, Hormel Foods supplies retail grocers, foodservice operators, convenience stores and e-commerce platforms.

Among its best-known brands, Hormel Foods produces SPAM® canned meats, Jennie-O® turkey products, Skippy® peanut butter and Applegate® natural and organic meats.