Hormel Foods Corporation (NYSE:HRL) Receives Consensus Rating of “Hold” from Brokerages

Hormel Foods Corporation (NYSE:HRL) has received a consensus rating of “Hold” from the nine ratings firms that are covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, six have issued a hold recommendation and two have given a buy recommendation to the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $26.1429.

Several analysts have recently weighed in on the company. Weiss Ratings reiterated a “sell (d+)” rating on shares of Hormel Foods in a research report on Friday, July 17th. The Goldman Sachs Group set a $25.00 price target on shares of Hormel Foods in a report on Thursday, May 21st. BNP Paribas Exane raised their price target on shares of Hormel Foods from $26.00 to $27.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 14th. Stephens reiterated an “equal weight” rating and set a $25.00 price objective on shares of Hormel Foods in a report on Thursday, July 9th. Finally, Bank of America boosted their price objective on shares of Hormel Foods from $25.00 to $27.00 and gave the company a “neutral” rating in a research report on Tuesday, June 30th.

Insider Activity

In related news, Director Gary C. Bhojwani sold 20,200 shares of the stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $24.51, for a total value of $495,102.00. Following the transaction, the director owned 32,002 shares of the company’s stock, valued at $784,369.02. This represents a 38.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.58% of the company’s stock.

Hedge Funds Weigh In On Hormel Foods

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. MUFG Securities EMEA plc purchased a new stake in Hormel Foods in the second quarter worth about $26,000. Strive Financial Group LLC bought a new position in Hormel Foods during the 4th quarter worth about $27,000. Motiv8 Investments LLC purchased a new position in Hormel Foods during the 4th quarter valued at about $28,000. Parkside Financial Bank & Trust raised its holdings in shares of Hormel Foods by 354.7% in the 4th quarter. Parkside Financial Bank & Trust now owns 1,314 shares of the company’s stock valued at $31,000 after purchasing an additional 1,025 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its holdings in shares of Hormel Foods by 57.5% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,455 shares of the company’s stock valued at $33,000 after purchasing an additional 531 shares in the last quarter. Institutional investors own 40.99% of the company’s stock.

Hormel Foods Stock Down 0.2%

Shares of NYSE HRL opened at $25.04 on Monday. Hormel Foods has a 1 year low of $19.70 and a 1 year high of $29.34. The firm has a 50-day simple moving average of $24.81 and a two-hundred day simple moving average of $23.46. The company has a market cap of $13.78 billion, a P/E ratio of 29.45, a PEG ratio of 2.89 and a beta of 0.34. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.94 and a quick ratio of 0.97.

Hormel Foods (NYSE:HRL) last issued its quarterly earnings results on Wednesday, May 27th. The company reported $0.40 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.05. The firm had revenue of $2.97 billion for the quarter, compared to the consensus estimate of $2.96 billion. Hormel Foods had a return on equity of 9.74% and a net margin of 3.82%.The company’s revenue for the quarter was up 2.6% on a year-over-year basis. During the same period in the prior year, the business posted $0.35 earnings per share. Research analysts anticipate that Hormel Foods will post 1.5 earnings per share for the current year.

Hormel Foods Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, August 17th. Stockholders of record on Monday, July 13th will be paid a dividend of $0.2925 per share. This represents a $1.17 annualized dividend and a dividend yield of 4.7%. The ex-dividend date of this dividend is Monday, July 13th. Hormel Foods’s payout ratio is currently 137.65%.

About Hormel Foods

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.