Kinloch Capital LLC Makes New $4.90 Million Investment in Hormel Foods Corporation $HRL

Key Points

• Kinloch Capital acquired 197,350 Hormel Foods shares worth approximately $4.90 million, making HRL about 1.8% of its portfolio and its 20th-largest holding.
• Hormel’s latest quarterly results exceeded expectations, with earnings of $0.40 per share versus a $0.35 estimate and revenue of $2.97 billion, up 2.6% year over year.
• Analysts maintain a generally neutral outlook: HRL has an average “Hold” rating and a consensus price target of $26.57, compared with shares opening at $24.06.

Kinloch Capital LLC bought a new stake in Hormel Foods Corporation (NYSE:HRL - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 197,350 shares of the company's stock, valued at approximately $4,898,000. Hormel Foods comprises approximately 1.8% of Kinloch Capital LLC's investment portfolio, making the stock its 20th biggest position.

A number of other hedge funds have also recently made changes to their positions in HRL. MUFG Securities EMEA plc acquired a new position in shares of Hormel Foods in the second quarter valued at approximately $26,000. Strive Financial Group LLC acquired a new stake in Hormel Foods during the 4th quarter worth approximately $27,000. Motiv8 Investments LLC bought a new stake in Hormel Foods during the 4th quarter worth approximately $28,000. Fiduciary Financial Advisors bought a new stake in Hormel Foods during the 2nd quarter worth approximately $29,000. Finally, Parkside Financial Bank & Trust increased its position in Hormel Foods by 354.7% in the 4th quarter. Parkside Financial Bank & Trust now owns 1,314 shares of the company's stock valued at $31,000 after acquiring an additional 1,025 shares during the period. 40.99% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Hormel Foods

In other news, Director Gary C. Bhojwani sold 20,200 shares of the business's 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 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.58% of the company's stock.

Hormel Foods Stock Up 0.8%

Shares of NYSE HRL opened at $24.06 on Tuesday. The company's 50 day moving average price is $24.90 and its 200-day moving average price is $23.43. The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.97 and a current ratio of 1.94. Hormel Foods Corporation has a 52-week low of $19.70 and a 52-week high of $29.18. The company has a market capitalization of $13.24 billion, a P/E ratio of 28.31, a price-to-earnings-growth ratio of 2.75 and a beta of 0.34.

Hormel Foods (NYSE:HRL - Get Free Report) last posted its quarterly earnings data on Wednesday, May 27th. The company reported $0.40 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.05. The company had revenue of $2.97 billion during the quarter, compared to analysts' expectations 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 for the quarter was up 2.6% compared to the same quarter last year. During the same period in the prior year, the company posted $0.35 earnings per share. Equities analysts forecast that Hormel Foods Corporation will post 1.5 earnings per share for the current year.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the stock. Stephens reaffirmed an "equal weight" rating and set a $25.00 price target on shares of Hormel Foods in a research note on Thursday, July 9th. Bank of America boosted their price objective on shares of Hormel Foods from $25.00 to $27.00 and gave the stock a "neutral" rating in a research note on Tuesday, June 30th. Weiss Ratings upgraded Hormel Foods from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, August 12th. JPMorgan Chase & Co. raised their target price on Hormel Foods from $25.00 to $26.00 and gave the stock a "neutral" rating in a research report on Friday, August 14th. Finally, BNP Paribas Exane upped their price target on 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 and seven have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $26.57.

About Hormel Foods

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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