Smithfield Foods (NASDAQ:SFD) Reaches New 52-Week Low – Time to Sell?

Smithfield Foods, Inc. (NASDAQ:SFD)’s stock price hit a new 52-week low during trading on Monday. The company traded as low as $18.09 and last traded at $18.2540, with a volume of 1,732,898 shares. The stock had previously closed at $18.64.

Analysts Set New Price Targets

Several research firms recently commented on SFD. Deutsche Bank Aktiengesellschaft set a $21.00 price objective on shares of Smithfield Foods in a research note on Friday, October 9th. Zacks Research downgraded Smithfield Foods from a “hold” rating to a “strong sell” rating in a research note on Thursday, August 13th. Bank of America downgraded shares of Smithfield Foods from a “buy” rating to a “neutral” rating and set a $21.00 price objective on the stock. in a report on Friday, October 9th. The Goldman Sachs Group reissued a “buy” rating and set a $32.00 target price on shares of Smithfield Foods in a research report on Wednesday, August 12th. Finally, Stephens assumed coverage on shares of Smithfield Foods in a research note on Wednesday, September 30th. They set an “equal weight” rating and a $22.00 price objective for the company. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $26.00.

Smithfield Foods Trading Down 1.8%

The firm has a market cap of $7.21 billion, a price-to-earnings ratio of 6.83 and a beta of -0.41. The company’s 50-day moving average price is $20.15 and its 200-day moving average price is $24.00. The company has a quick ratio of 1.34, a current ratio of 2.56 and a debt-to-equity ratio of 0.20.

Smithfield Foods (NASDAQ:SFD) last issued its earnings results on Tuesday, August 11th. The company reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.60 by $0.02. Smithfield Foods had a return on equity of 15.55% and a net margin of 6.84%. The business had revenue of $3.70 billion for the quarter. During the same quarter in the prior year, the firm earned $0.55 earnings per share. The company’s revenue for the quarter was down 2.3% on a year-over-year basis. Equities analysts expect that Smithfield Foods, Inc. will post 2.03 EPS for the current fiscal year.

Smithfield Foods Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Investors of record on Thursday, August 13th were paid a dividend of $0.3125 per share. This represents a $1.25 dividend on an annualized basis and a dividend yield of 6.8%. The ex-dividend date was Thursday, August 13th. Smithfield Foods’s dividend payout ratio is presently 46.64%.

Institutional Investors Weigh In On Smithfield Foods

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Leo Wealth LLC acquired a new stake in shares of Smithfield Foods during the third quarter worth $689,000. Diversify Advisory Services LLC increased its stake in shares of Smithfield Foods by 128.6% during the 3rd quarter. Diversify Advisory Services LLC now owns 32,753 shares of the company’s stock valued at $605,000 after acquiring an additional 18,427 shares during the last quarter. Investors Asset Management of Georgia Inc. GA ADV acquired a new position in shares of Smithfield Foods during the 3rd quarter valued at about $439,000. CWA Asset Management Group LLC boosted its position in shares of Smithfield Foods by 11.7% in the third quarter. CWA Asset Management Group LLC now owns 69,900 shares of the company’s stock worth $1,309,000 after acquiring an additional 7,319 shares during the last quarter. Finally, IFP Advisors Inc boosted its position in shares of Smithfield Foods by 210.2% in the third quarter. IFP Advisors Inc now owns 11,836 shares of the company’s stock worth $222,000 after acquiring an additional 8,021 shares during the last quarter.

About Smithfield Foods

Smithfield Foods, Inc is a food company engaged in pork production and the manufacture and sale of packaged meats. Its operations include hog production, fresh pork processing, and the preparation of bacon, ham, sausage, hot dogs, deli meats and other ready-to-cook or ready-to-eat products.

The company sells products under brands that include Smithfield, Eckrich, Nathan’s Famous and Farmland, as well as through private-label and foodservice channels. Its products are distributed through grocery retailers, restaurants, foodservice operators and other commercial customers in the United States and international markets.

Founded in Smithfield, Virginia, in 1936, Smithfield Foods expanded through acquisitions and became one of the world’s largest pork processors and hog producers.