Hormel Foods (NYSE:HRL) Shares Gap Up on Earnings Beat

Hormel Foods Corporation (NYSE:HRL) shares gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $20.96, but opened at $22.97. Hormel Foods shares last traded at $22.7820, with a volume of 1,239,590 shares changing hands.

The company reported $0.40 EPS for the quarter, topping analysts’ consensus estimates of $0.35 by $0.05. The company had revenue of $2.97 billion for the quarter, compared to analysts’ expectations of $2.96 billion. Hormel Foods had a net margin of 4.03% and a return on equity of 9.38%. The firm’s revenue was up 2.6% compared to the same quarter last year. During the same quarter last year, the company earned $0.35 EPS.

Hormel Foods Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 17th. Stockholders of record on Monday, July 13th will be issued a $0.2925 dividend. The ex-dividend date is Monday, July 13th. This represents a $1.17 annualized dividend and a dividend yield of 5.1%. Hormel Foods’s payout ratio is currently 131.46%.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on HRL. The Goldman Sachs Group set a $25.00 target price on Hormel Foods in a report on Thursday, May 21st. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $23.00 price target (down from $28.00) on shares of Hormel Foods in a research note on Thursday, April 9th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Hormel Foods in a research report on Tuesday, April 21st. Finally, Stephens set a $22.00 price objective on Hormel Foods and gave the company an “equal weight” rating in a research note on Thursday, May 21st. Three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Hormel Foods presently has a consensus rating of “Hold” and a consensus price target of $25.33.

Institutional Trading of Hormel Foods

A number of institutional investors have recently modified their holdings of HRL. Arete Wealth Advisors LLC grew its stake in shares of Hormel Foods by 68.9% in the first quarter. Arete Wealth Advisors LLC now owns 20,708 shares of the company’s stock worth $469,000 after purchasing an additional 8,450 shares during the last quarter. Bank of America Corp DE raised its position in 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 purchasing an additional 79,509 shares during the last quarter. Janus Henderson Group PLC lifted its holdings in Hormel Foods by 11.3% in the 1st quarter. Janus Henderson Group PLC now owns 24,539 shares of the company’s stock worth $556,000 after buying an additional 2,495 shares during the period. Arkadios Wealth Advisors lifted its holdings in Hormel Foods by 69.2% in the 1st quarter. Arkadios Wealth Advisors now owns 68,695 shares of the company’s stock worth $1,556,000 after buying an additional 28,102 shares during the period. Finally, Amundi grew its position in shares of Hormel Foods by 11.8% in the 1st quarter. Amundi now owns 1,504,188 shares of the company’s stock worth $34,070,000 after buying an additional 159,043 shares during the last quarter. 40.99% of the stock is currently owned by hedge funds and other institutional investors.

Hormel Foods Trading Up 9.2%

The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.37 and a current ratio of 2.66. The stock has a market capitalization of $12.60 billion, a P/E ratio of 25.79, a price-to-earnings-growth ratio of 2.87 and a beta of 0.33. The stock has a 50-day moving average price of $21.39 and a two-hundred day moving average price of $22.96.

Hormel Foods Company Profile

Hormel Foods Corporation is a global branded foods company primarily engaged in the production, marketing and distribution of value-added, high-quality meat and food products. The company’s portfolio spans a range of categories including refrigerated and frozen meats, pantry staples, specialty foods and shelf-stable items. Through manufacturing facilities located across North America and international markets, Hormel Foods supplies retail grocers, foodservice operators, convenience stores and e-commerce platforms.

Among its best-known brands, Hormel Foods produces SPAM® canned meats, Jennie-O® turkey products, Skippy® peanut butter and Applegate® natural and organic meats.