Key Points
- Insider buying: Hormel Foods Chairman William Newlands purchased 10,000 shares for approximately $201,000, increasing his ownership by 15.07% to 76,375 shares.
- Financial performance: Hormel reported quarterly EPS of $0.37, beating estimates of $0.35, though revenue fell 2.4% year over year to $2.96 billion and missed expectations.
- Dividend and outlook: The company declared a quarterly dividend of $0.2925, equivalent to a 5.9% annualized yield, while analysts maintained an overall “Hold” rating with a consensus price target of $26.14.
Hormel Foods Corporation (NYSE:HRL - Get Free Report) Chairman William Newlands purchased 10,000 shares of the stock in a transaction dated Monday, October 5th. The shares were acquired at an average cost of $20.10 per share, for a total transaction of $201,000.00. Following the completion of the acquisition, the chairman owned 76,375 shares of the company's stock, valued at approximately $1,535,137.50. This represents a 15.07% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.
Hormel Foods Trading Down 1.0%
Hormel Foods stock opened at $19.88 on Wednesday. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.88 and a quick ratio of 0.92. Hormel Foods Corporation has a one year low of $19.42 and a one year high of $26.60. The stock has a market capitalization of $10.94 billion, a PE ratio of 31.56, a price-to-earnings-growth ratio of 2.36 and a beta of 0.30. The business's fifty day moving average is $22.36 and its 200 day moving average is $22.73.
Hormel Foods (NYSE:HRL - Get Free Report) last released its quarterly earnings data on Wednesday, August 26th. The company reported $0.37 EPS for the quarter, topping the consensus estimate of $0.35 by $0.02. The company had revenue of $2.96 billion during the quarter, compared to the consensus estimate of $3.03 billion. Hormel Foods had a return on equity of 9.91% and a net margin of 2.82%.Hormel Foods's revenue for the quarter was down 2.4% on a year-over-year basis. During the same period last year, the company earned $0.35 EPS. On average, sell-side analysts predict that Hormel Foods Corporation will post 1.49 EPS for the current year.
Hormel Foods Announces Dividend
The business also recently declared a quarterly dividend, which will be paid on Monday, November 16th. Stockholders of record on Tuesday, October 13th will be paid a $0.2925 dividend. The ex-dividend date is Tuesday, October 13th. This represents a $1.17 dividend on an annualized basis and a dividend yield of 5.9%. Hormel Foods's payout ratio is currently 185.71%.
Analyst Ratings Changes
Several equities research analysts recently issued reports on the stock. JPMorgan Chase & Co. raised their target price on shares of Hormel Foods from $25.00 to $26.00 and gave the stock a "neutral" rating in a report on Friday, August 14th. BNP Paribas Exane decreased their target price on shares of Hormel Foods from $27.00 to $26.00 and set a "neutral" rating for the company in a research note on Friday, August 28th. Bank of America increased their price target on Hormel Foods from $25.00 to $27.00 and gave the company a "neutral" rating in a report on Tuesday, June 30th. Piper Sandler reaffirmed a "neutral" rating on shares of Hormel Foods in a report on Tuesday. Finally, Stephens set a $23.00 price objective on Hormel Foods in a research report on Friday, August 28th. Two analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Hormel Foods presently has an average rating of "Hold" and a consensus price target of $26.14.
View Our Latest Stock Analysis on HRL
Institutional Investors Weigh In On Hormel Foods
Hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. purchased a new position in Hormel Foods during the second quarter valued at $489,092,000. Dimensional Fund Advisors LP lifted its position in shares of Hormel Foods by 2.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,849,174 shares of the company's stock valued at $155,152,000 after buying an additional 134,983 shares in the last quarter. Vest Financial LLC lifted its position in shares of Hormel Foods by 7.8% during the 2nd quarter. Vest Financial LLC now owns 2,285,103 shares of the company's stock valued at $56,716,000 after buying an additional 165,403 shares in the last quarter. Bank of America Corp DE grew its stake in shares of Hormel Foods by 3.4% during the 1st quarter. Bank of America Corp DE now owns 2,405,895 shares of the company's stock valued at $54,494,000 after acquiring an additional 79,509 shares during the period. Finally, Epoch Investment Partners Inc. bought a new position in shares of Hormel Foods during the 1st quarter valued at approximately $44,733,000. 40.99% of the stock is currently owned by hedge funds and other institutional investors.
About Hormel Foods
(
Get Free Report)
Hormel Foods Corporation is a global food company headquartered in Austin, Minnesota. Founded in 1891 by George A. Hormel, the company began as a meat processor and has expanded into a broad portfolio of branded food products sold through retail, foodservice and international channels.
Its products include refrigerated and shelf-stable meat, deli meats, bacon, pepperoni, sausages, canned foods, nut products and other prepared foods. Key brands include Hormel, SPAM, Jennie-O, Applegate, Columbus and Planters.
Further Reading
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