Hank Shenghua He Purchases 10,000 Shares of Smithfield Foods (NASDAQ:SFD) Stock

Key Points

• Hank Shenghua He, a director at Smithfield Foods, purchased 10,000 shares at an average price of $23.25, increasing his total holdings to 87,000 shares valued at approximately $2 million.
• Smithfield Foods reported a quarterly earnings per share of $0.55, slightly missing analysts' expectations, but showed a revenue increase of 11% year-over-year, totaling $3.79 billion.
• The company recently declared a quarterly dividend of $0.25 per share, resulting in an annualized dividend yield of 4.3%, with a dividend payout ratio of 44.05%.

Smithfield Foods, Inc. (NASDAQ:SFD - Get Free Report) Director Hank Shenghua He acquired 10,000 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 $232,500.00. Following the transaction, the director owned 87,000 shares in the company, valued at approximately $2,022,750. This represents a 12.99% increase in their position. The acquisition was disclosed in a filing with the SEC, which is accessible through this link.

Smithfield Foods Stock Performance

Shares of NASDAQ:SFD traded down $0.16 during trading hours on Tuesday, hitting $23.33. 3,508,799 shares of the company's stock traded hands, compared to its average volume of 846,931. Smithfield Foods, Inc. has a 52 week low of $18.43 and a 52 week high of $26.07. The company's fifty day simple moving average is $24.63 and its two-hundred day simple moving average is $22.55. The company has a market cap of $9.17 billion and a price-to-earnings ratio of 10.28.

Smithfield Foods (NASDAQ:SFD - Get Free Report) last posted its quarterly earnings data on Tuesday, August 12th. The company reported $0.55 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.01). The firm had revenue of $3.79 billion for the quarter, compared to the consensus estimate of $3.62 billion. Smithfield Foods's revenue for the quarter was up 11.0% on a year-over-year basis.

Smithfield Foods Dividend Announcement

The firm also recently disclosed 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 4.3%. Smithfield Foods's dividend payout ratio (DPR) is 44.05%.

Analyst Ratings Changes

A number of research firms have commented on SFD. Zacks Research raised shares of Smithfield Foods from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 15th. Barclays upped their price objective on shares of Smithfield Foods from $28.00 to $30.00 and gave the company an "overweight" rating in a research note on Wednesday, August 13th. Morgan Stanley upped their price objective on shares of Smithfield Foods from $29.00 to $30.00 and gave the company an "overweight" rating in a research note on Wednesday, August 13th. Finally, UBS Group reaffirmed 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 given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $28.44.

Hedge Funds Weigh In On Smithfield Foods

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SFD. Zimmer Partners LP bought a new position in Smithfield Foods during the first quarter valued at approximately $56,087,000. Millennium Management LLC bought a new position in Smithfield Foods during the first quarter valued at approximately $46,687,000. Park West Asset Management LLC bought a new position in Smithfield Foods during the first quarter valued at approximately $35,621,000. Norges Bank bought a new position in Smithfield Foods during the second quarter valued at approximately $31,295,000. Finally, Alberta Investment Management Corp bought a new position in Smithfield Foods during the first quarter valued at approximately $25,488,000.

About Smithfield Foods

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.

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