Hormel Foods Corporation $HRL Shares Sold by Bank of New York Mellon Corp

Key Points

• Bank of New York Mellon reduced its Hormel Foods stake by 6.4% in the first quarter, selling 96,968 shares and retaining 1.42 million shares valued at about $32.1 million. Institutional investors and hedge funds collectively own 40.99% of HRL.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $26.14. Recent targets range from $23 to $27, while ratings include two Buys, six Holds and one Sell.
• Hormel reported quarterly earnings of $0.40 per share, beating estimates, while revenue rose 2.6% year over year to $2.97 billion. The company announced a quarterly dividend of $0.2925, equivalent to a 4.6% annualized yield.

Bank of New York Mellon Corp decreased its holdings in shares of Hormel Foods Corporation (NYSE:HRL - Free Report) by 6.4% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,418,804 shares of the company's stock after selling 96,968 shares during the period. Bank of New York Mellon Corp owned about 0.26% of Hormel Foods worth $32,136,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently modified their holdings of HRL. Harel Insurance Investments & Financial Services Ltd. boosted its holdings in shares of Hormel Foods by 28.5% in the 1st quarter. Harel Insurance Investments & Financial Services Ltd. now owns 63,592 shares of the company's stock valued at $1,440,000 after buying an additional 14,092 shares during the period. Sigma Planning Corp boosted its stake in Hormel Foods by 38.7% in the first quarter. Sigma Planning Corp now owns 27,408 shares of the company's stock valued at $621,000 after acquiring an additional 7,642 shares during the period. Bleakley Financial Group LLC bought a new position in shares of Hormel Foods during the first quarter valued at approximately $454,000. Principal Financial Group Inc. raised its position in shares of Hormel Foods by 1.1% during the 1st quarter. Principal Financial Group Inc. now owns 342,331 shares of the company's stock worth $7,754,000 after purchasing an additional 3,806 shares during the period. Finally, Y.D. More Investments Ltd acquired a new stake in shares of Hormel Foods during the 1st quarter worth approximately $99,000. 40.99% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research analysts recently issued reports on HRL shares. Bank of America boosted their price objective on Hormel Foods from $25.00 to $27.00 and gave the company a "neutral" rating in a research report on Tuesday, June 30th. Weiss Ratings reissued a "sell (d+)" rating on shares of Hormel Foods in a report on Friday, July 17th. JPMorgan Chase & Co. restated a "neutral" rating and set a $23.00 price target (down from $28.00) on shares of Hormel Foods in a research report on Thursday, April 9th. BNP Paribas Exane lifted their price objective on shares of Hormel Foods from $26.00 to $27.00 and gave the company a "neutral" rating in a research report on Tuesday, July 14th. Finally, The Goldman Sachs Group set a $25.00 target price on shares of Hormel Foods in a research note on Thursday, May 21st. Two investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $26.14.

Hormel Foods Stock Performance

Shares of HRL opened at $25.30 on Monday. The firm has a market capitalization of $13.93 billion, a PE ratio of 29.77, a P/E/G ratio of 2.91 and a beta of 0.34. The company has a quick ratio of 0.97, a current ratio of 1.94 and a debt-to-equity ratio of 0.30. The firm has a 50-day moving average price of $24.01 and a 200 day moving average price of $23.33. Hormel Foods Corporation has a 52-week low of $19.70 and a 52-week high of $29.34.

Hormel Foods (NYSE:HRL - Get Free Report) last released its quarterly earnings results on Wednesday, May 27th. The company reported $0.40 EPS for the quarter, topping analysts' consensus estimates of $0.35 by $0.05. The company had revenue of $2.97 billion for the quarter, compared to the consensus estimate of $2.96 billion. Hormel Foods had a net margin of 3.82% and a return on equity of 9.74%. Hormel Foods's revenue was up 2.6% on a year-over-year basis. During the same period in the previous year, the firm earned $0.35 EPS. On average, sell-side analysts anticipate that Hormel Foods Corporation will post 1.5 earnings per share for the current fiscal year.

Hormel Foods Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, August 17th. Shareholders of record on Monday, July 13th will be given a $0.2925 dividend. This represents a $1.17 dividend on an annualized basis and a yield of 4.6%. The ex-dividend date is Monday, July 13th. Hormel Foods's dividend payout ratio is 137.65%.

Insiders Place Their Bets

In other Hormel Foods news, Director Gary C. Bhojwani sold 20,200 shares of the stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $24.51, for a total transaction of $495,102.00. Following the completion of the transaction, the director directly owned 32,002 shares of the company's stock, valued at approximately $784,369.02. This trade represents a 38.70% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.58% of the stock is owned by company insiders.

Hormel Foods Profile

Hormel Foods Corporation is a global branded foods company primarily engaged in the production, marketing and distribution of value-added, high-quality meat and food products. The company's portfolio spans a range of categories including refrigerated and frozen meats, pantry staples, specialty foods and shelf-stable items. Through manufacturing facilities located across North America and international markets, Hormel Foods supplies retail grocers, foodservice operators, convenience stores and e-commerce platforms.

Among its best-known brands, Hormel Foods produces SPAM® canned meats, Jennie-O® turkey products, Skippy® peanut butter and Applegate® natural and organic meats.

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