Park West Asset Management LLC Acquires New Holdings in Smithfield Foods, Inc. $SFD

Key Points

• Park West Asset Management LLC acquired 1,747,000 shares of Smithfield Foods, Inc. in Q1, valued at approximately $35.6 million, making it the 16th largest holding in their portfolio.
• Smithfield Foods recently reported $3.79 billion in revenue for the quarter, surpassing analyst expectations, while its earnings per share missed expectations by $0.01.
• Several analysts have upgraded Smithfield Foods, raising target prices, with UBS setting a new target at $28.50, while the stock maintains a consensus rating of Buy.

Park West Asset Management LLC acquired a new position in shares of Smithfield Foods, Inc. (NASDAQ:SFD - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 1,747,000 shares of the company's stock, valued at approximately $35,621,000. Smithfield Foods makes up about 2.9% of Park West Asset Management LLC's investment portfolio, making the stock its 16th biggest position. Park West Asset Management LLC owned 0.44% of Smithfield Foods at the end of the most recent quarter.

A number of other large investors have also modified their holdings of SFD. PNC Financial Services Group Inc. acquired a new position in Smithfield Foods during the 1st quarter worth approximately $27,000. Amalgamated Bank acquired a new position in shares of Smithfield Foods during the first quarter worth $28,000. Pacer Advisors Inc. acquired a new position in shares of Smithfield Foods during the first quarter worth $34,000. Deutsche Bank AG purchased a new position in shares of Smithfield Foods in the first quarter valued at $74,000. Finally, American Capital Advisory LLC purchased a new stake in Smithfield Foods during the 1st quarter worth $102,000.

Smithfield Foods Trading Up 1.5%

SFD traded up $0.36 on Thursday, hitting $24.52. 3,076,588 shares of the company's stock were exchanged, compared to its average volume of 874,412. The stock has a fifty day moving average of $24.61 and a two-hundred day moving average of $22.57. Smithfield Foods, Inc. has a twelve month low of $18.43 and a twelve month high of $26.07. The firm has a market cap of $9.64 billion and a PE ratio of 10.80.

Smithfield Foods (NASDAQ:SFD - Get Free Report) last posted its 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 during the quarter, compared to the consensus estimate of $3.62 billion. Smithfield Foods's revenue for the quarter was up 11.0% compared to the same quarter last year.

Smithfield Foods Announces Dividend

The company also recently declared 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. The ex-dividend date was Thursday, August 14th. This represents a $1.00 annualized dividend and a dividend yield of 4.1%. Smithfield Foods's dividend payout ratio is currently 44.05%.

Analysts Set New Price Targets

SFD has been the subject of several recent analyst reports. Zacks Research upgraded Smithfield Foods from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 15th. Barclays lifted their price objective on Smithfield Foods from $28.00 to $30.00 and gave the stock an "overweight" rating in a report on Wednesday, August 13th. Morgan Stanley raised their price target on shares of Smithfield Foods from $29.00 to $30.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 13th. Finally, UBS Group reiterated a "buy" rating and set a $28.50 price objective (up from $25.00) on shares of Smithfield Foods in a research note on Wednesday, August 13th. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $28.44.

Insiders Place Their Bets

In other news, insider Keller D. Watts purchased 3,833 shares of the company's stock in a transaction on Monday, September 8th. The shares were bought at an average price of $23.25 per share, for a total transaction of $89,117.25. Following the completion of the purchase, the insider owned 74,857 shares of the company's stock, valued at $1,740,425.25. This trade represents a 5.40% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Doug Sutton acquired 3,920 shares of Smithfield Foods stock in a transaction dated Monday, September 8th. The shares were acquired at an average price of $23.25 per share, with a total value of $91,140.00. Following the completion of the transaction, the insider owned 68,920 shares of the company's stock, valued at approximately $1,602,390. This trade represents a 6.03% increase in their position. The disclosure for this purchase can be found here. Over the last 90 days, insiders have acquired 1,831,753 shares of company stock worth $42,588,257. 0.84% of the stock is owned by company insiders.

Smithfield Foods Company Profile

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.