Zacks Investment Research upgraded shares of Hormel (NYSE:HRL) from a sell rating to a hold rating in a report released on Tuesday morning.
According to Zacks, “In the last three months, Hormel Foods’ shares have outperformed the industry. The company perceives that elevated demand for on-trend branded products will bolster its revenues in the upcoming quarters. Hormel Foods also believes that the new tax reform will boost its near-term liquidity, enabling it to fund new investments, raise employee wages and boost shareholders’ return going forward. However, over the last three months, the stock looks overvalued compared to the industry. The company noted that lower turkey prices will continue to hurt its Jennie-O Turkey Store business in the quarters ahead. Moreover, headwinds like unfavorable foreign currency-translation impact might dent results in the upcoming quarters. Over the past 7 days, the Zacks Consensus Estimate for the stock remained unchanged for fiscals 2018 and 2019.”
A number of other research firms also recently commented on HRL. Jefferies Group restated a buy rating on shares of Hormel in a report on Thursday, February 22nd. Credit Suisse Group cut their price objective on Hormel from $36.00 to $33.00 and set a neutral rating on the stock in a report on Tuesday, February 27th. Piper Jaffray Companies restated a buy rating and issued a $39.00 price objective on shares of Hormel in a report on Tuesday, February 27th. Finally, Barclays restated a buy rating and issued a $38.00 price objective (down from $40.00) on shares of Hormel in a report on Friday, February 23rd. One investment analyst has rated the stock with a sell rating, six have given a hold rating and five have issued a buy rating to the company’s stock. Hormel currently has a consensus rating of Hold and an average price target of $34.60.
Hormel stock opened at $35.84 on Tuesday. The stock has a market capitalization of $19.01 billion, a PE ratio of 22.83, a PEG ratio of 2.19 and a beta of 0.43. The company has a current ratio of 1.47, a quick ratio of 0.74 and a debt-to-equity ratio of 0.12. Hormel has a 12 month low of $29.75 and a 12 month high of $38.00.
Hormel (NYSE:HRL) last released its quarterly earnings data on Thursday, February 22nd. The company reported $0.44 EPS for the quarter, hitting analysts’ consensus estimates of $0.44. The company had revenue of $2.33 billion for the quarter, compared to the consensus estimate of $2.43 billion. Hormel had a return on equity of 17.44% and a net margin of 9.92%. The company’s quarterly revenue was up 2.1% compared to the same quarter last year. During the same period last year, the business posted $0.44 EPS. equities analysts forecast that Hormel will post 1.76 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 15th. Investors of record on Monday, July 16th will be issued a dividend of $0.1875 per share. The ex-dividend date is Friday, July 13th. This represents a $0.75 annualized dividend and a dividend yield of 2.09%. Hormel’s payout ratio is currently 47.77%.
In related news, insider Steven G. Binder sold 20,000 shares of the firm’s stock in a transaction dated Thursday, March 8th. The stock was sold at an average price of $33.40, for a total transaction of $668,000.00. Following the sale, the insider now directly owns 31,964 shares in the company, valued at approximately $1,067,597.60. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Glenn S. Forbes sold 4,492 shares of the firm’s stock in a transaction dated Friday, March 9th. The shares were sold at an average price of $33.71, for a total value of $151,425.32. Following the sale, the director now owns 50,326 shares in the company, valued at $1,696,489.46. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 281,976 shares of company stock worth $9,718,072. Company insiders own 1.48% of the company’s stock.
Large investors have recently made changes to their positions in the stock. BlackRock Inc. raised its holdings in shares of Hormel by 1.8% during the 4th quarter. BlackRock Inc. now owns 20,327,330 shares of the company’s stock valued at $739,714,000 after buying an additional 367,255 shares during the period. Honkamp Krueger Financial Services Inc. raised its holdings in shares of Hormel by 14.0% during the 4th quarter. Honkamp Krueger Financial Services Inc. now owns 15,367 shares of the company’s stock valued at $559,000 after buying an additional 1,886 shares during the period. US Bancorp DE raised its holdings in shares of Hormel by 33.2% during the 4th quarter. US Bancorp DE now owns 2,046,311 shares of the company’s stock valued at $74,466,000 after buying an additional 510,148 shares during the period. W. E. Donoghue & Co. LLC purchased a new stake in Hormel during the 4th quarter worth approximately $2,567,000. Finally, Wells Fargo & Company MN increased its holdings in Hormel by 76.8% during the 4th quarter. Wells Fargo & Company MN now owns 896,231 shares of the company’s stock worth $32,615,000 after purchasing an additional 389,176 shares during the last quarter. Institutional investors and hedge funds own 40.65% of the company’s stock.
Hormel Foods Corporation produces and markets various meat and food products in the United States and internationally. The company operates through five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods, and International & Other. It offers various perishable meat products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamole, and bacon; and shelf-stable products, such as canned luncheon meats, peanut butter, chilies, shelf-stable microwaveable meals, hash, stews, meat spreads, flour and corn tortillas, salsas, tortilla chips, and other products.
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