Stephens Begins Coverage on Smithfield Foods (NASDAQ:SFD)

Key Points

• Stephens initiated coverage of Smithfield Foods with an “equal weight” rating and a $22 price target, implying approximately 15.7% upside from the stock’s current price.
• Analyst sentiment is mixed: Smithfield has a consensus “Hold” rating and an average price target of $29.20, with four Buy, two Hold, and one Sell rating.
• Shares opened at $19.01, near their 12-month low, while the company recently reported quarterly EPS of $0.62—above estimates—but revenue declined 2.3% year over year to $3.70 billion.

Equities researchers at Stephens started coverage on shares of Smithfield Foods (NASDAQ:SFD - Get Free Report) in a research report issued on Wednesday, Benzinga reports. The firm set an "equal weight" rating and a $22.00 price target on the stock. Stephens' price target suggests a potential upside of 15.73% from the stock's current price.

Several other equities analysts have also recently weighed in on SFD. The Goldman Sachs Group reissued a "buy" rating and set a $32.00 price objective on shares of Smithfield Foods in a research report on Wednesday, August 12th. Bank of America dropped their price target on Smithfield Foods from $33.00 to $32.00 and set a "buy" rating on the stock in a research report on Thursday, July 2nd. Barclays reduced their price objective on Smithfield Foods from $31.00 to $29.00 and set an "overweight" rating for the company in a research report on Wednesday, September 9th. Weiss Ratings lowered shares of Smithfield Foods from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, September 17th. Finally, Zacks Research downgraded shares of Smithfield Foods from a "hold" rating to a "strong sell" rating in a report on Thursday, August 13th. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $29.20.

Smithfield Foods Trading Down 0.7%

NASDAQ:SFD opened at $19.01 on Wednesday. Smithfield Foods has a 12 month low of $18.81 and a 12 month high of $29.81. The firm has a market cap of $7.49 billion, a price-to-earnings ratio of 7.09 and a beta of -0.51. The company has a quick ratio of 1.34, a current ratio of 2.56 and a debt-to-equity ratio of 0.20. The company's 50 day moving average is $22.57 and its 200-day moving average is $24.87.

Smithfield Foods (NASDAQ:SFD - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $0.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.60 by $0.02. The business had revenue of $3.70 billion during the quarter. Smithfield Foods had a net margin of 6.84% and a return on equity of 15.55%. Smithfield Foods's quarterly revenue was down 2.3% on a year-over-year basis. During the same period in the prior year, the company posted $0.55 earnings per share. Equities analysts anticipate that Smithfield Foods will post 2.12 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SFD. Norges Bank bought a new position in shares of Smithfield Foods during the 4th quarter worth approximately $31,291,000. BlackRock Inc. bought a new position in Smithfield Foods during the 2nd quarter valued at about $33,145,000. Fourth Sail Capital LP grew its stake in Smithfield Foods by 16.2% during the fourth quarter. Fourth Sail Capital LP now owns 1,140,619 shares of the company's stock worth $25,470,000 after buying an additional 159,038 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund raised its stake in shares of Smithfield Foods by 232.4% in the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 831,100 shares of the company's stock valued at $23,246,000 after acquiring an additional 581,100 shares during the last quarter. Finally, Bank of America Corp DE bought a new stake in Smithfield Foods during the 2nd quarter worth approximately $19,855,000.

About Smithfield Foods

Smithfield Foods, Inc is a vertically integrated food company focused on pork production and packaged meats. Its operations include raising livestock, processing and packaging pork, and distributing fresh pork and prepared foods. The company's products include bacon, ham, sausage, hot dogs, lunch meats, fresh pork cuts and other refrigerated and shelf-stable meat products.

Smithfield markets products under brands including Smithfield, Eckrich, Farmland, Nathan's Famous and Healthy Ones, as well as private-label offerings for retailers and food-service customers.

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