Hormel Foods Corporation (NYSE:HRL) Given Average Recommendation of "Hold" by Analysts

Key Points

• Hormel Foods Corporation has received an average analyst rating of "Hold", with two analysts recommending a sell, four a hold, and four a buy.
• The company's stock price target averages $30.88, reflecting recent downgrades from firms like JPMorgan and Bank of America.
• Hormel Foods has announced a quarterly dividend of $0.29 per share, with a yield of 4.8%, payable on November 17th.

Hormel Foods Corporation (NYSE:HRL - Get Free Report) has received a consensus rating of "Hold" from the ten analysts that are presently covering the stock, Marketbeat reports. Two investment analysts have rated the stock with a sell recommendation, four have assigned a hold recommendation and four have assigned a buy recommendation to the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $30.8750.

A number of research firms have weighed in on HRL. JPMorgan Chase & Co. decreased their target price on shares of Hormel Foods from $34.00 to $30.00 and set an "overweight" rating on the stock in a research note on Friday, August 29th. Barclays reissued an "overweight" rating and issued a $34.00 target price (down from $36.00) on shares of Hormel Foods in a research note on Friday, August 29th. Zacks Research lowered shares of Hormel Foods from a "hold" rating to a "strong sell" rating in a research note on Friday, August 29th. Bank of America decreased their target price on shares of Hormel Foods from $35.00 to $28.00 and set a "neutral" rating on the stock in a research note on Friday, August 29th. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of Hormel Foods in a research note on Saturday, September 27th.

Hormel Foods Trading Down 1.3%

HRL stock opened at $24.33 on Tuesday. The company has a current ratio of 2.47, a quick ratio of 1.12 and a debt-to-equity ratio of 0.35. Hormel Foods has a 12-month low of $23.71 and a 12-month high of $33.80. The stock has a market cap of $13.38 billion, a price-to-earnings ratio of 17.76, a PEG ratio of 5.49 and a beta of 0.29. The business's 50-day moving average is $26.54 and its 200 day moving average is $28.85.

Hormel Foods (NYSE:HRL - Get Free Report) last posted its quarterly earnings data on Thursday, August 28th. The company reported $0.35 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.41 by ($0.06). Hormel Foods had a return on equity of 10.06% and a net margin of 6.26%.The firm had revenue of $3.03 billion during the quarter, compared to analyst estimates of $2.98 billion. During the same quarter in the previous year, the firm posted $0.37 earnings per share. The company's quarterly revenue was up 4.6% on a year-over-year basis. Hormel Foods has set its Q4 2025 guidance at 0.380-0.400 EPS. FY 2025 guidance at 1.430-1.450 EPS. On average, sell-side analysts anticipate that Hormel Foods will post 1.65 EPS for the current fiscal year.

Hormel Foods Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 17th. Shareholders of record on Tuesday, October 14th will be paid a $0.29 dividend. This represents a $1.16 dividend on an annualized basis and a yield of 4.8%. The ex-dividend date of this dividend is Tuesday, October 14th. Hormel Foods's dividend payout ratio (DPR) is 84.67%.

Institutional Trading of Hormel Foods

Several institutional investors have recently made changes to their positions in the company. Praxis Investment Management Inc. raised its position in shares of Hormel Foods by 83.3% during the 3rd quarter. Praxis Investment Management Inc. now owns 14,367 shares of the company's stock valued at $355,000 after buying an additional 6,527 shares during the period. Caldwell Trust Co purchased a new stake in shares of Hormel Foods during the 2nd quarter valued at approximately $30,000. Rexford Capital Inc. purchased a new stake in shares of Hormel Foods during the 2nd quarter valued at approximately $59,000. Walnut Level Capital LLC purchased a new stake in shares of Hormel Foods during the 2nd quarter valued at approximately $2,269,000. Finally, CANADA LIFE ASSURANCE Co raised its position in shares of Hormel Foods by 6.1% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 296,289 shares of the company's stock valued at $8,968,000 after buying an additional 17,090 shares during the period. Hedge funds and other institutional investors own 40.99% of the company's stock.

Hormel Foods Company Profile

Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and other food products to retail, foodservice, deli, and commercial customers in the United States and internationally. It operates through three segments: Retail, Foodservice, and International segments. The company provides various perishable products that include fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons; and shelf-stable products comprising canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and others.

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