Hormel Foods Corporation (NYSE:HRL) Stock Has Consensus Target Price of $25.43 According to Analysts

Key Points

• Analysts have a consensus “Hold” rating on Hormel Foods, with six hold, two buy and one sell recommendation. The average 12-month price target is $25.43, versus a recent share price of $20.39.
• Hormel’s latest quarterly earnings of $0.37 per share exceeded estimates of $0.35, but revenue declined 2.4% year over year to $2.96 billion, below expectations.
• The company declared a quarterly dividend of $0.2925 per share, equivalent to an annualized $1.17 dividend and a 5.7% yield. Chairman William Newlands also purchased 10,000 shares, increasing his stake by 15.07%.

Shares of Hormel Foods Corporation (NYSE:HRL - Get Free Report) have received a consensus recommendation of "Hold" from the nine ratings firms that are presently covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, six have issued a hold recommendation and two have assigned a buy recommendation to the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $25.43.

HRL has been the subject of several analyst reports. Weiss Ratings lowered Hormel Foods from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, August 28th. Barclays reiterated an "overweight" rating and issued a $28.00 target price (down from $30.00) on shares of Hormel Foods in a report on Wednesday. Bank of America boosted their target price on Hormel Foods from $25.00 to $27.00 and gave the company a "neutral" rating in a research report on Tuesday, June 30th. JPMorgan Chase & Co. increased their price target on Hormel Foods from $25.00 to $26.00 and gave the company a "neutral" rating in a report on Friday, August 14th. Finally, Piper Sandler restated a "neutral" rating on shares of Hormel Foods in a report on Tuesday, October 6th.

Insiders Place Their Bets

In other news, Chairman William A. Newlands bought 10,000 shares of Hormel Foods stock in a transaction dated Monday, October 5th. The shares were acquired at an average price of $20.10 per share, with a total value of $201,000.00. Following the completion of the purchase, the chairman owned 76,375 shares in the company, valued at $1,535,137.50. The trade was a 15.07% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.58% of the stock is owned by company insiders.

Hedge Funds Weigh In On Hormel Foods

Large investors have recently made changes to their positions in the company. Raiffeisen Bank International AG lifted its stake in Hormel Foods by 90.7% in the second quarter. Raiffeisen Bank International AG now owns 986 shares of the company's stock worth $26,000 after purchasing an additional 469 shares during the last quarter. Fiduciary Financial Advisors purchased a new position in shares of Hormel Foods during the second quarter valued at approximately $29,000. EverSource Wealth Advisors LLC grew its stake in shares of Hormel Foods by 57.5% during the first quarter. EverSource Wealth Advisors LLC now owns 1,455 shares of the company's stock valued at $33,000 after buying an additional 531 shares during the last quarter. Root Financial Partners LLC grew its stake in shares of Hormel Foods by 149.2% during the first quarter. Root Financial Partners LLC now owns 1,495 shares of the company's stock valued at $34,000 after buying an additional 895 shares during the last quarter. Finally, Global Retirement Partners LLC bought a new position in shares of Hormel Foods during the second quarter valued at approximately $37,000. 40.99% of the stock is owned by hedge funds and other institutional investors.

Hormel Foods Price Performance

Shares of Hormel Foods stock opened at $20.39 on Friday. The stock's 50-day simple moving average is $21.46 and its 200-day simple moving average is $22.56. Hormel Foods has a 52 week low of $18.96 and a 52 week high of $26.60. The company has a market capitalization of $11.22 billion, a price-to-earnings ratio of 32.36, a PEG ratio of 2.38 and a beta of 0.30. The company has a quick ratio of 0.92, a current ratio of 1.88 and a debt-to-equity ratio of 0.30.

Hormel Foods (NYSE:HRL - Get Free Report) last issued its earnings results on Wednesday, August 26th. The company reported $0.37 earnings per share for the quarter, topping analysts' consensus estimates of $0.35 by $0.02. The firm had revenue of $2.96 billion during the quarter, compared to analyst estimates of $3.03 billion. Hormel Foods had a net margin of 2.82% and a return on equity of 9.91%. Hormel Foods's revenue for the quarter was down 2.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.35 earnings per share. As a group, analysts expect that Hormel Foods will post 1.48 earnings per share for the current fiscal year.

Hormel Foods Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, November 16th. Shareholders of record on Tuesday, October 13th will be paid a dividend of $0.2925 per share. This represents a $1.17 annualized dividend and a yield of 5.7%. The ex-dividend date of this dividend is Tuesday, October 13th. Hormel Foods's payout ratio is presently 185.71%.

About Hormel Foods

Hormel Foods Corporation is a global food company headquartered in Austin, Minnesota. Founded in 1891 by George A. Hormel, the company began as a meat processor and has expanded into a broad portfolio of branded food products sold through retail, foodservice and international channels.

Its products include refrigerated and shelf-stable meat, deli meats, bacon, pepperoni, sausages, canned foods, nut products and other prepared foods. Key brands include Hormel, SPAM, Jennie-O, Applegate, Columbus and Planters.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.