Zacks Research Downgrades Pilgrim’s Pride (NASDAQ:PPC) to Strong Sell

Pilgrim’s Pride (NASDAQ:PPC) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Wednesday,Zacks.com reports.

A number of other research analysts have also recently commented on PPC. Santander upgraded Pilgrim’s Pride from a “neutral” rating to an “outperform” rating in a research note on Thursday, December 11th. Weiss Ratings reiterated a “hold (c)” rating on shares of Pilgrim’s Pride in a report on Monday, December 29th. Barclays dropped their target price on shares of Pilgrim’s Pride from $49.00 to $45.00 and set an “equal weight” rating on the stock in a report on Tuesday, December 9th. Finally, Wall Street Zen upgraded shares of Pilgrim’s Pride from a “hold” rating to a “buy” rating in a research note on Saturday, February 7th. One research analyst has rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $46.33.

Pilgrim’s Pride Trading Down 3.6%

NASDAQ:PPC opened at $41.65 on Wednesday. The company has a 50-day moving average price of $40.74 and a 200-day moving average price of $41.33. The stock has a market cap of $9.89 billion, a price-to-earnings ratio of 9.17 and a beta of 0.43. The company has a current ratio of 1.51, a quick ratio of 0.78 and a debt-to-equity ratio of 0.87. Pilgrim’s Pride has a 12 month low of $35.73 and a 12 month high of $57.16.

Pilgrim’s Pride (NASDAQ:PPC) last released its quarterly earnings results on Wednesday, February 11th. The company reported $0.64 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.78 by ($0.14). Pilgrim’s Pride had a return on equity of 35.68% and a net margin of 5.85%.The company had revenue of $4.52 billion during the quarter, compared to the consensus estimate of $4.39 billion. During the same period in the previous year, the company earned $1.35 earnings per share. Pilgrim’s Pride’s quarterly revenue was up 3.3% on a year-over-year basis. Equities analysts predict that Pilgrim’s Pride will post 5.13 EPS for the current year.

Hedge Funds Weigh In On Pilgrim’s Pride

Large investors have recently modified their holdings of the stock. Torren Management LLC purchased a new position in Pilgrim’s Pride in the fourth quarter worth about $31,000. MCF Advisors LLC bought a new stake in shares of Pilgrim’s Pride during the fourth quarter valued at approximately $35,000. True Wealth Design LLC raised its holdings in Pilgrim’s Pride by 1,248.5% in the 3rd quarter. True Wealth Design LLC now owns 917 shares of the company’s stock worth $37,000 after acquiring an additional 849 shares during the last quarter. Kingdom Financial Group LLC. bought a new position in Pilgrim’s Pride in the 4th quarter valued at approximately $37,000. Finally, Abich Financial Wealth Management LLC purchased a new stake in Pilgrim’s Pride during the 3rd quarter valued at $41,000. Hedge funds and other institutional investors own 16.64% of the company’s stock.

Pilgrim’s Pride News Roundup

Here are the key news stories impacting Pilgrim’s Pride this week:

• Positive Sentiment: Full-year strength: Pilgrim’s reported 2025 net sales of $18.5B, GAAP net income ~$1.1B and adjusted EBITDA of $2.27B, and management highlighted durable demand in U.S. Fresh and strong branded/prepared-foods growth. Pilgrim’s Pride Reports Fourth Quarter and Year-End 2025 Results
• Positive Sentiment: Shareholder returns and liquidity: The company returned $2B via special dividends and reports net leverage under ~1.1x adjusted EBITDA — a positive for capital allocation and balance-sheet flexibility. Quiver AI summary of results
• Neutral Sentiment: Operational highlights: U.S. Prepared Foods grew >20% and the Just Bare® brand crossed $1B retail sales; Europe showed improving adjusted EBITDA and back‑office integration benefits. These are execution items to monitor for sustained margin recovery. Zacks: Q4 sales up 3.3% Y/Y
• Neutral Sentiment: Investor materials available: Management hosted an earnings presentation and slide deck/ conference call (useful for drilldowns on commodity exposure, litigation assumptions and segment trends). Earnings call presentation
• Negative Sentiment: Q4 profit and EPS pressure: Q4 net sales were $4.52B (+3.3% Y/Y) but GAAP net income fell to $88M (GAAP EPS $0.37) and adjusted EPS was $0.68 — below some analyst consensus (~$0.78), triggering the sell‑off. Zacks: Q4 earnings and revenues miss
• Negative Sentiment: Margin headwinds and segment weakness: Adjusted EBITDA fell ~21% Y/Y in Q4 to $415M; Mexico’s adjusted EBITDA margin compressed sharply (1.8% in Q4) due to increased imports and weaker commodity fundamentals — a key risk for near-term profitability. WSJ: Profit slides on commodity trends
• Negative Sentiment: One‑time charges and litigation: The company recorded litigation‑related charges included in its non‑GAAP reconciliations (~$77M in Q4 adjustments) and restructuring costs — these reduce near‑term adjusted metrics and create earnings volatility. Press release (details on adjustments)

About Pilgrim’s Pride

Pilgrim’s Pride Corporation is a leading poultry producer in the United States and Mexico and a wholly owned subsidiary of JBS SA Headquartered in Greeley, Colorado, and Pittsburg, Texas, the company specializes in the production, processing and distribution of fresh, frozen and value-added chicken products. Pilgrim’s Pride serves a diverse customer base that includes retail grocery chains, foodservice distributors and restaurant operators across North America and in select international markets.

The company’s vertically integrated operations encompass breeding, hatching, feed milling, processing plants and cold storage facilities.