Smithfield Foods (NASDAQ:SFD) Stock Price Breaks Above 50 Day Moving Average – What’s Next?

Smithfield Foods, Inc. (NASDAQ:SFD) crossed above its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $19.54 and traded as high as $19.78. Smithfield Foods shares last traded at $19.72, with a volume of 3,580,340 shares.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on SFD. Stephens reiterated a “reduce” rating on shares of Smithfield Foods in a research note on Wednesday, October 28th. The Goldman Sachs Group reiterated a “buy” rating and issued a $32.00 price objective on shares of Smithfield Foods in a research note on Wednesday, August 12th. Zacks Research cut Smithfield Foods from a “hold” rating to a “strong sell” rating in a research report on Thursday, August 13th. Barclays cut their price objective on Smithfield Foods from $29.00 to $23.00 and set an “overweight” rating for the company in a research report on Wednesday, October 28th. Finally, Bank of America downgraded Smithfield Foods from a “buy” rating to a “neutral” rating and set a $21.00 target price for the company. in a research note on Friday, October 9th. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $24.67.

Smithfield Foods Price Performance

The firm has a market cap of $7.77 billion, a P/E ratio of 8.65 and a beta of -0.39. The stock’s 50-day moving average is $19.54 and its 200-day moving average is $23.93. The company has a quick ratio of 1.20, a current ratio of 2.39 and a debt-to-equity ratio of 0.20.

Smithfield Foods (NASDAQ:SFD) last issued its quarterly earnings results on Tuesday, October 27th. The company reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.25 by $0.01. The firm had revenue of $3.44 billion during the quarter. Smithfield Foods had a net margin of 5.94% and a return on equity of 13.41%. Smithfield Foods’s revenue for the quarter was down 8.3% on a year-over-year basis. During the same period last year, the company earned $0.58 earnings per share. As a group, equities analysts anticipate that Smithfield Foods, Inc. will post 1.77 EPS for the current fiscal year.

Smithfield Foods Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Thursday, November 12th will be paid a dividend of $0.3125 per share. This represents a $1.25 annualized dividend and a yield of 6.3%. The ex-dividend date is Thursday, November 12th. Smithfield Foods’s payout ratio is currently 54.82%.

Hedge Funds Weigh In On Smithfield Foods

Several large investors have recently added to or reduced their stakes in the company. Group One Trading LLC acquired a new position in Smithfield Foods in the first quarter worth about $31,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Smithfield Foods during the second quarter worth about $29,000. Altshuler Shaham Ltd lifted its stake in Smithfield Foods by 36.8% during the first quarter. Altshuler Shaham Ltd now owns 1,524 shares of the company’s stock worth $43,000 after purchasing an additional 410 shares during the period. Ancora Advisors LLC acquired a new stake in Smithfield Foods during the second quarter valued at approximately $43,000. Finally, Persistent Asset Partners Ltd acquired a new stake in Smithfield Foods during the second quarter valued at approximately $58,000.

Smithfield Foods Company Profile

Smithfield Foods, Inc is a food company engaged in pork production and the manufacture and sale of packaged meats. Its operations include hog production, fresh pork processing, and the preparation of bacon, ham, sausage, hot dogs, deli meats and other ready-to-cook or ready-to-eat products.

The company sells products under brands that include Smithfield, Eckrich, Nathan’s Famous and Farmland, as well as through private-label and foodservice channels. Its products are distributed through grocery retailers, restaurants, foodservice operators and other commercial customers in the United States and international markets.

Founded in Smithfield, Virginia, in 1936, Smithfield Foods expanded through acquisitions and became one of the world’s largest pork processors and hog producers.