Goldman Sachs Group Inc. Acquires New Shares in Smithfield Foods, Inc. $SFD

Key Points

• Goldman Sachs Group Inc. acquired a new stake in Smithfield Foods, purchasing 156,694 shares valued at approximately $3,195,000 in the first quarter.
• Smithfield Foods reported a quarterly earnings miss with earnings per share of $0.55 compared to the expected $0.56, despite an 11.0% year-over-year revenue growth to $3.79 billion.
• The company declared a quarterly dividend of $0.25, resulting in an annualized dividend yield of 4.2%, with a payout ratio of 44.05%.

Goldman Sachs Group Inc. purchased a new position in shares of Smithfield Foods, Inc. (NASDAQ:SFD - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 156,694 shares of the company's stock, valued at approximately $3,195,000.

Other large investors have also recently made changes to their positions in the company. PNC Financial Services Group Inc. purchased a new position in shares of Smithfield Foods during the first quarter worth approximately $27,000. Amalgamated Bank purchased a new position in shares of Smithfield Foods during the first quarter worth approximately $28,000. Pacer Advisors Inc. purchased a new position in shares of Smithfield Foods during the first quarter worth approximately $34,000. Deutsche Bank AG purchased a new position in shares of Smithfield Foods during the first quarter worth approximately $74,000. Finally, American Capital Advisory LLC purchased a new position in shares of Smithfield Foods during the first quarter worth approximately $102,000.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the stock. UBS Group reaffirmed a "buy" rating and issued a $28.50 target price (up from $25.00) on shares of Smithfield Foods in a research note on Wednesday, August 13th. Morgan Stanley lifted their target price on shares of Smithfield Foods from $29.00 to $30.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 13th. Barclays lifted their target price on shares of Smithfield Foods from $28.00 to $30.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 13th. Finally, Zacks Research raised shares of Smithfield Foods from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 15th. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average target price of $28.44.

Smithfield Foods Trading Down 0.4%

NASDAQ:SFD traded down $0.09 during mid-day trading on Tuesday, reaching $23.92. The company's stock had a trading volume of 51,129 shares, compared to its average volume of 889,886. Smithfield Foods, Inc. has a 12-month low of $18.43 and a 12-month high of $26.07. The firm's fifty day moving average price is $24.62 and its two-hundred day moving average price is $22.80. The stock has a market cap of $9.40 billion and a P/E ratio of 10.54.

Smithfield Foods (NASDAQ:SFD - Get Free Report) last released its quarterly earnings results on Tuesday, August 12th. The company reported $0.55 EPS for the quarter, missing the consensus estimate of $0.56 by ($0.01). The firm had revenue of $3.79 billion for the quarter, compared to analysts' expectations of $3.62 billion. The firm's revenue for the quarter was up 11.0% on a year-over-year basis.

Smithfield Foods Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, August 28th. Stockholders of record on Thursday, August 14th were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date was Thursday, August 14th. Smithfield Foods's dividend payout ratio is currently 44.05%.

Insider Activity

In other Smithfield Foods news, insider Donovan Owens bought 12,000 shares of Smithfield Foods stock in a transaction on Monday, September 8th. The shares were acquired at an average price of $23.25 per share, for a total transaction of $279,000.00. Following the completion of the purchase, the insider directly owned 77,000 shares in the company, valued at approximately $1,790,250. This trade represents a 18.46% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Keller D. Watts bought 3,833 shares of Smithfield Foods stock in a transaction on Monday, September 8th. The stock was acquired at an average price of $23.25 per share, for a total transaction of $89,117.25. Following the purchase, the insider owned 74,857 shares of the company's stock, valued at approximately $1,740,425.25. This trade represents a 5.40% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last ninety days, insiders purchased 1,831,753 shares of company stock worth $42,588,257. 0.84% of the stock is owned by corporate insiders.

About Smithfield Foods

Smithfield Foods, Inc produces and markets a variety of fresh meat and packaged meats products both domestically and internationally. The Company operates in four segments: Pork, Hog Production, International and Corporate, each of which consists of a number of subsidiaries, joint ventures and other investments.