Hormel Foods Corporation $HRL Stock: Miller Howard Investments Inc. NY Reduces Stake

Key Points

• Miller Howard Investments reduced its Hormel Foods stake by 5.8% in the third quarter, selling 101,743 shares and retaining 1.66 million shares worth approximately $33.1 million. Institutional investors collectively own 40.99% of HRL.
• Hormel reported quarterly EPS of $0.37, beating estimates of $0.35, but revenue fell 2.4% year over year to $2.96 billion, below expectations. The stock opened at $20.91, near its 52-week low, while analysts maintain a consensus “Hold” rating.
• Hormel declared a quarterly dividend of $0.2925 per share, equivalent to a $1.17 annualized payout and a 5.6% yield. Chairman William Newlands also purchased 10,000 shares, increasing his position by 15.07%.

Miller Howard Investments Inc. NY decreased its position in shares of Hormel Foods Corporation (NYSE:HRL - Free Report) by 5.8% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,659,423 shares of the company's stock after selling 101,743 shares during the period. Miller Howard Investments Inc. NY owned 0.30% of Hormel Foods worth $33,089,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. The Manufacturers Life Insurance Company bought a new stake in Hormel Foods in the 2nd quarter valued at $5,554,000. Public Employees Retirement System of Ohio bought a new position in shares of Hormel Foods during the 2nd quarter worth about $2,050,000. Masters Capital Management LLC bought a new position in shares of Hormel Foods during the 1st quarter worth about $19,252,000. Core Capital Management & Research inc. bought a new position in shares of Hormel Foods during the 2nd quarter worth about $7,729,000. Finally, Fidelity National Financial Inc. acquired a new stake in shares of Hormel Foods during the 2nd quarter valued at about $16,381,000. 40.99% of the stock is currently owned by institutional investors.

Hormel Foods Stock Performance

Hormel Foods stock opened at $20.91 on Tuesday. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.88 and a quick ratio of 0.92. The stock has a fifty day moving average price of $21.14 and a two-hundred day moving average price of $22.91. Hormel Foods Corporation has a 52-week low of $18.96 and a 52-week high of $26.60. The firm has a market capitalization of $11.51 billion, a P/E ratio of 14.73, a P/E/G ratio of 2.48 and a beta of 0.30.

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

Hormel Foods Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, November 16th. Investors of record on Tuesday, October 13th will be issued a dividend of $0.2925 per share. This represents a $1.17 annualized dividend and a yield of 5.6%. The ex-dividend date of this dividend is Tuesday, October 13th. Hormel Foods's dividend payout ratio (DPR) is currently 185.71%.

Analyst Ratings Changes

Several analysts have recently weighed in on HRL shares. JPMorgan Chase & Co. lifted their target price on shares of Hormel Foods from $25.00 to $26.00 and gave the company a "neutral" rating in a research report on Friday, August 14th. Piper Sandler reissued a "neutral" rating on shares of Hormel Foods in a research report on Tuesday, October 6th. BNP Paribas Exane restated a "neutral" rating and set a $23.00 price target (down from $26.00) on shares of Hormel Foods in a research note on Wednesday, October 7th. Stephens set a $23.00 price objective on Hormel Foods in a report on Friday, August 28th. Finally, Weiss Ratings downgraded Hormel Foods from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, August 28th. Two research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $25.43.

Insider Transactions at Hormel Foods

In other news, Chairman William A. Newlands purchased 10,000 shares of the business's stock in a transaction that occurred on Monday, October 5th. The stock was purchased at an average cost of $20.10 per share, with a total value of $201,000.00. Following the acquisition, the chairman directly owned 76,375 shares of the company's stock, valued at approximately $1,535,137.50. This trade represents a 15.07% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 0.58% of the stock is owned by corporate insiders.

Hormel Foods Company Profile

Hormel Foods Corporation NYSE: HRL is a global food company headquartered in Austin, Minnesota. Founded in 1891 by George A. Hormel, the company began as a meat-processing business 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 meats, meals, snacks and other prepared foods. Hormel Foods markets products under well-known brands such as Hormel, SPAM, Jennie-O, Applegate, Columbus, Skippy and Planters, although its brand portfolio and business operations may evolve over time.

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