Hsbc Holdings PLC Reduces Stock Holdings in Hormel Foods Corporation $HRL

Key Points

• HSBC Holdings PLC cut its Hormel Foods stake by 50.9% in the first quarter, selling 527,180 shares and ending with 508,397 shares valued at about $11.5 million.
• Hormel Foods reported better-than-expected quarterly earnings, posting $0.40 EPS versus $0.35 expected, while revenue of $2.97 billion also slightly beat estimates and rose 2.6% year over year.
• The company declared a quarterly dividend of $0.2925 per share, equivalent to an annualized yield of 4.6%, though the payout ratio is elevated at 137.65%.

Hsbc Holdings PLC reduced its position in shares of Hormel Foods Corporation (NYSE:HRL - Free Report) by 50.9% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 508,397 shares of the company's stock after selling 527,180 shares during the period. Hsbc Holdings PLC owned 0.09% of Hormel Foods worth $11,518,000 at the end of the most recent quarter.

A number of other institutional investors also recently bought and sold shares of HRL. Banco Bilbao Vizcaya Argentaria S.A. grew its stake in shares of Hormel Foods by 5.0% in the 4th quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 8,967 shares of the company's stock valued at $213,000 after buying an additional 431 shares during the period. Exchange Traded Concepts LLC raised its position in shares of Hormel Foods by 0.8% during the 4th quarter. Exchange Traded Concepts LLC now owns 55,180 shares of the company's stock valued at $1,308,000 after buying an additional 437 shares during the period. Advisory Alpha LLC lifted its holdings in Hormel Foods by 2.9% in the fourth quarter. Advisory Alpha LLC now owns 15,477 shares of the company's stock valued at $367,000 after acquiring an additional 440 shares during the last quarter. Vermillion Wealth Management Inc. lifted its holdings in Hormel Foods by 1.7% in the fourth quarter. Vermillion Wealth Management Inc. now owns 25,944 shares of the company's stock valued at $615,000 after acquiring an additional 441 shares during the last quarter. Finally, SBI Securities Co. Ltd. grew its position in Hormel Foods by 6.0% in the fourth quarter. SBI Securities Co. Ltd. now owns 8,583 shares of the company's stock worth $203,000 after acquiring an additional 483 shares during the period. 40.99% of the stock is owned by hedge funds and other institutional investors.

Hormel Foods Stock Up 0.4%

Shares of NYSE HRL opened at $25.20 on Thursday. 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 business's 50 day moving average is $23.80 and its two-hundred day moving average is $23.30. Hormel Foods Corporation has a 52-week low of $19.70 and a 52-week high of $29.78. The firm has a market cap of $13.87 billion, a price-to-earnings ratio of 29.65, a PEG ratio of 2.89 and a beta of 0.34.

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 the consensus estimate of $0.35 by $0.05. Hormel Foods had a return on equity of 9.74% and a net margin of 3.82%.The business had revenue of $2.97 billion during the quarter, compared to analyst estimates of $2.96 billion. During the same period last year, the business posted $0.35 earnings per share. The company's quarterly revenue was up 2.6% on a year-over-year basis. Research analysts predict that Hormel Foods Corporation will post 1.5 EPS for the current year.

Hormel Foods Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 17th. Investors of record on Monday, July 13th will be issued a dividend of $0.2925 per share. 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 (DPR) is 137.65%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on HRL shares. JPMorgan Chase & Co. restated a "neutral" rating and issued a $23.00 target price (down from $28.00) on shares of Hormel Foods in a research report on Thursday, April 9th. Bank of America increased their price target on Hormel Foods from $25.00 to $27.00 and gave the stock a "neutral" rating in a report on Tuesday, June 30th. Stephens reissued an "equal weight" rating and set a $25.00 price objective on shares of Hormel Foods in a research report on Thursday, July 9th. Weiss Ratings restated a "sell (d+)" rating on shares of Hormel Foods in a report on Friday, July 17th. Finally, BNP Paribas Exane upped their target price 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. Two research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Hormel Foods has a consensus rating of "Hold" and a consensus target price of $26.14.

Insiders Place Their Bets

In other Hormel Foods news, Director Gary C. Bhojwani sold 20,200 shares of Hormel Foods stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $24.51, for a total value of $495,102.00. Following the completion of the transaction, the director directly owned 32,002 shares of the company's stock, valued at $784,369.02. The trade was a 38.70% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.58% of the stock is currently owned by corporate 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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