Hormel Foods Co. (NYSE:HRL) Receives Average Recommendation of “Reduce” from Analysts

Shares of Hormel Foods Co. (NYSE:HRL) have earned an average recommendation of “Reduce” from the seven ratings firms that are covering the stock, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, four have given a hold recommendation and one has issued a buy recommendation on the company. The average 12-month price objective among brokers that have covered the stock in the last year is $31.29.

Several research firms have issued reports on HRL. Citigroup cut their price target on shares of Hormel Foods from $36.00 to $35.00 and set a “buy” rating on the stock in a report on Tuesday. BNP Paribas started coverage on shares of Hormel Foods in a report on Monday, October 21st. They issued an “underperform” rating and a $28.00 price target on the stock. Finally, Stephens assumed coverage on Hormel Foods in a research note on Thursday, October 3rd. They set an “equal weight” rating and a $31.00 price objective for the company.

Hormel Foods Trading Up 1.6 %

HRL stock opened at $30.22 on Thursday. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.29 and a quick ratio of 1.03. The company has a market capitalization of $16.57 billion, a PE ratio of 21.28, a P/E/G ratio of 3.10 and a beta of 0.26. The firm’s 50-day moving average is $31.10 and its 200 day moving average is $31.80. Hormel Foods has a 12 month low of $28.51 and a 12 month high of $36.86.

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

Hormel Foods Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, November 15th. Shareholders of record on Tuesday, October 15th were given a dividend of $0.282 per share. This represents a $1.13 dividend on an annualized basis and a yield of 3.73%. The ex-dividend date was Tuesday, October 15th. Hormel Foods’s dividend payout ratio is presently 79.58%.

Insider Activity at Hormel Foods

In other Hormel Foods news, VP Steven J. Lykken sold 9,800 shares of Hormel Foods stock in a transaction dated Friday, September 27th. The shares were sold at an average price of $31.91, for a total transaction of $312,718.00. Following the transaction, the vice president now directly owns 30,589 shares of the company’s stock, valued at $976,094.99. The trade was a 24.26 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Deanna T. Brady sold 51,600 shares of Hormel Foods stock in a transaction that occurred on Friday, September 13th. The shares were sold at an average price of $31.95, for a total transaction of $1,648,620.00. Following the sale, the executive vice president now directly owns 72,421 shares in the company, valued at approximately $2,313,850.95. The trade was a 41.61 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 71,400 shares of company stock valued at $2,288,338. 0.69% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Hormel Foods

Several large investors have recently modified their holdings of the business. EverSource Wealth Advisors LLC increased its stake in Hormel Foods by 688.3% in the first quarter. EverSource Wealth Advisors LLC now owns 741 shares of the company’s stock valued at $26,000 after purchasing an additional 647 shares during the last quarter. Brooklyn Investment Group purchased a new stake in Hormel Foods in the third quarter valued at $32,000. International Assets Investment Management LLC purchased a new position in shares of Hormel Foods during the second quarter worth about $34,000. Central Valley Advisors LLC purchased a new stake in shares of Hormel Foods in the 2nd quarter valued at about $37,000. Finally, Prospera Private Wealth LLC purchased a new position in Hormel Foods during the 3rd quarter worth approximately $39,000. Institutional investors and hedge funds own 40.99% of the company’s stock.

About Hormel Foods

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.