Smithfield Foods, Inc. (SFD) - What Are Researchers Saying About This Stock?

Key Points

• Analyst sentiment is mixed: Seven brokerages have a consensus “Hold” rating, split among three buys, three sells and one hold; the average 12-month price target is $24.67.
• Smithfield reported quarterly EPS of $0.26, slightly above the $0.25 consensus, but revenue fell 8.3% year over year to $3.44 billion and EPS declined from $0.58 a year earlier.
• The company announced a quarterly dividend of $0.3125 per share, equivalent to $1.25 annually and a 6.4% yield.

Smithfield Foods, Inc. (NASDAQ:SFD - Get Free Report) has earned a consensus rating of "Hold" from the seven brokerages that are covering the company, Marketbeat.com reports. Three research analysts have rated the stock with a sell recommendation, one has issued a hold recommendation and three have issued a buy recommendation on the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $24.67.

A number of research analysts have issued reports on SFD shares. Weiss Ratings lowered Smithfield Foods from a "hold (c)" rating to a "sell (d)" rating in a research report on Wednesday, October 28th. Barclays decreased their price target on Smithfield Foods from $29.00 to $23.00 and set an "overweight" rating for the company in a research note on Wednesday, October 28th. Stephens reissued a "reduce" rating on shares of Smithfield Foods in a report on Wednesday, October 28th. Deutsche Bank Aktiengesellschaft set a $21.00 price objective on shares of Smithfield Foods in a research note on Friday, October 9th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and issued a $32.00 price objective on shares of Smithfield Foods in a report on Wednesday, August 12th.

Institutional Trading of Smithfield Foods

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Smithfield Foods during the second quarter worth about $29,000. Group One Trading LLC bought a new stake in Smithfield Foods in the first quarter worth about $31,000. Altshuler Shaham Ltd lifted its holdings in Smithfield Foods by 36.8% in the 1st quarter. Altshuler Shaham Ltd now owns 1,524 shares of the company's stock valued at $43,000 after acquiring an additional 410 shares during the last quarter. Ancora Advisors LLC acquired a new stake in Smithfield Foods in the 2nd quarter valued at about $43,000. Finally, Fulcrum Asset Management LLP acquired a new stake in Smithfield Foods in the 3rd quarter valued at about $53,000.

Smithfield Foods Stock Performance

SFD opened at $19.60 on Friday. The company has a current ratio of 2.39, a quick ratio of 1.20 and a debt-to-equity ratio of 0.20. The business's 50 day moving average is $19.49 and its 200-day moving average is $23.91. The stock has a market cap of $7.72 billion, a PE ratio of 8.60 and a beta of -0.39. Smithfield Foods has a twelve month low of $17.91 and a twelve month high of $29.81.

Smithfield Foods (NASDAQ:SFD - Get Free Report) last issued its quarterly earnings data on Tuesday, October 27th. The company reported $0.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.25 by $0.01. Smithfield Foods had a return on equity of 13.41% and a net margin of 5.94%. The business had revenue of $3.44 billion during the quarter. During the same period last year, the company earned $0.58 earnings per share. The business's quarterly revenue was down 8.3% compared to the same quarter last year. On average, analysts predict that Smithfield Foods will post 1.77 earnings per share for the current year.

Smithfield Foods Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Shareholders of record on Thursday, November 12th will be paid a dividend of $0.3125 per share. The ex-dividend date of this dividend is Thursday, November 12th. This represents a $1.25 annualized dividend and a yield of 6.4%. Smithfield Foods's dividend payout ratio (DPR) is presently 54.82%.

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.

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