Squarepoint Ops LLC Grows Stake in Smithfield Foods, Inc. $SFD

Key Points

• Squarepoint Ops LLC increased its Smithfield Foods stake by 144.9% in the second quarter, adding 66,519 shares to own 112,413 shares valued at approximately $2.7 million.
• Smithfield Foods reported quarterly EPS of $0.62, above the $0.60 consensus estimate, while revenue fell 2.3% year over year to $3.70 billion. Analysts expect $2.12 in full-year EPS.
• The company pays a quarterly dividend of $0.3125 per share, equivalent to a 6.2% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $31, versus the stock’s reported price of $20.26.

Squarepoint Ops LLC grew its stake in shares of Smithfield Foods, Inc. (NASDAQ:SFD - Free Report) by 144.9% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 112,413 shares of the company's stock after acquiring an additional 66,519 shares during the quarter. Squarepoint Ops LLC's holdings in Smithfield Foods were worth $2,727,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the company. Group One Trading LLC bought a new position in Smithfield Foods in the 1st quarter valued at approximately $31,000. Altshuler Shaham Ltd bought a new stake in shares of Smithfield Foods in the 4th quarter worth $25,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Smithfield Foods in the second quarter worth $29,000. Raymond James Financial Inc. purchased a new position in shares of Smithfield Foods in the second quarter worth $29,000. Finally, Parallel Advisors LLC bought a new position in shares of Smithfield Foods during the third quarter valued at $37,000.

Smithfield Foods Stock Performance

Smithfield Foods stock opened at $20.26 on Monday. Smithfield Foods, Inc. has a 52-week low of $20.05 and a 52-week high of $29.81. The company has a market cap of $7.98 billion, a P/E ratio of 7.56 and a beta of -0.51. The company has a quick ratio of 1.34, a current ratio of 2.56 and a debt-to-equity ratio of 0.20. The business has a 50-day simple moving average of $23.92 and a two-hundred day simple moving average of $25.29.

Smithfield Foods (NASDAQ:SFD - Get Free Report) last issued its quarterly earnings data on Tuesday, August 11th. The company reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.60 by $0.02. Smithfield Foods had a net margin of 6.84% and a return on equity of 15.55%. The firm had revenue of $3.70 billion for the quarter. During the same quarter last year, the company earned $0.55 EPS. Smithfield Foods's revenue for the quarter was down 2.3% on a year-over-year basis. Analysts predict that Smithfield Foods, Inc. will post 2.12 EPS for the current year.

Smithfield Foods Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Thursday, August 13th were paid a dividend of $0.3125 per share. This represents a $1.25 annualized dividend and a dividend yield of 6.2%. The ex-dividend date was Thursday, August 13th. Smithfield Foods's dividend payout ratio (DPR) is currently 46.64%.

Analysts Set New Price Targets

SFD has been the subject of several research analyst reports. The Goldman Sachs Group reiterated a "buy" rating and issued a $32.00 price objective on shares of Smithfield Foods in a report on Wednesday, August 12th. Bank of America dropped their price target on shares of Smithfield Foods from $33.00 to $32.00 and set a "buy" rating on the stock in a report on Thursday, July 2nd. Weiss Ratings lowered shares of Smithfield Foods from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, September 3rd. Barclays decreased their price objective on shares of Smithfield Foods from $31.00 to $29.00 and set an "overweight" rating for the company in a report on Wednesday. Finally, Zacks Research downgraded shares of Smithfield Foods from a "hold" rating to a "strong sell" rating in a research report on Thursday, August 13th. Five equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $31.00.

About Smithfield Foods

Smithfield Foods, Inc is a food company focused on pork production and processing. Its operations include raising hogs, processing fresh pork, and producing packaged meats and prepared foods for retail, foodservice and other customers.

The company markets products under brands including Smithfield, Eckrich, Farmland, Gwaltney, John Morrell and Healthy Ones. Its offerings include fresh pork cuts, bacon, ham, sausage, lunch meats, hot dogs and other prepared pork products.

Founded in 1936 and headquartered in Smithfield, Virginia, Smithfield serves customers in the United States and international markets through its production, processing and distribution network.

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