Hormel Foods (NYSE:HRL) Sets New 12-Month Low Following Weak Earnings

Hormel Foods Co. (NYSE:HRL)’s stock price hit a new 52-week low on Thursday following a dissappointing earnings announcement. The company traded as low as $27.68 and last traded at $27.98, with a volume of 1047880 shares traded. The stock had previously closed at $28.73.

The company reported $0.42 earnings per share for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.01). Hormel Foods had a return on equity of 10.95% and a net margin of 6.75%. The company had revenue of $3.14 billion for the quarter, compared to analysts’ expectations of $3.14 billion. During the same period in the prior year, the company posted $0.42 EPS. The firm’s revenue was down 1.9% compared to the same quarter last year.

Wall Street Analyst Weigh In

Several equities analysts recently commented on HRL shares. Barclays raised Hormel Foods from a “hold” rating to a “strong-buy” rating in a report on Wednesday, January 22nd. Citigroup dropped their target price on Hormel Foods from $36.00 to $35.00 and set a “buy” rating on the stock in a report on Tuesday, November 19th. Finally, Stephens restated an “equal weight” rating and issued a $31.00 price objective on shares of Hormel Foods in a research note on Tuesday, February 18th. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating, one has given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $31.17.

Insider Transactions at Hormel Foods

In other news, VP Steven J. Lykken acquired 4,904 shares of Hormel Foods stock in a transaction that occurred on Friday, December 6th. The stock was purchased at an average price of $32.47 per share, for a total transaction of $159,232.88. Following the completion of the transaction, the vice president now directly owns 7,100 shares in the company, valued at approximately $230,537. This trade represents a 223.32 % increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.72% of the company’s stock.

Institutional Investors Weigh In On Hormel Foods

A number of hedge funds have recently added to or reduced their stakes in HRL. Crews Bank & Trust acquired a new stake in Hormel Foods in the fourth quarter valued at about $25,000. Brooklyn Investment Group acquired a new stake in Hormel Foods in the third quarter valued at about $32,000. Prospera Private Wealth LLC acquired a new stake in Hormel Foods in the third quarter valued at about $39,000. Fairway Wealth LLC acquired a new stake in Hormel Foods in the fourth quarter valued at about $44,000. Finally, Capital Performance Advisors LLP acquired a new stake in Hormel Foods in the third quarter valued at about $47,000. Institutional investors and hedge funds own 40.99% of the company’s stock.

Hormel Foods Stock Performance

The company has a quick ratio of 1.19, a current ratio of 2.32 and a debt-to-equity ratio of 0.36. The company has a market capitalization of $15.69 billion, a PE ratio of 19.57, a PEG ratio of 2.73 and a beta of 0.26. The stock’s fifty day simple moving average is $30.00 and its 200-day simple moving average is $31.05.

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.