Hormel Foods Corporation (NYSE:HRL) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Analysts maintain a “Hold” consensus on Hormel Foods, with six hold, two buy and one sell ratings. The average 12-month price target is $26.14, modestly above the stock’s $25.03 opening price.
• Hormel reported quarterly EPS of $0.40, beating the $0.35 consensus estimate, while revenue reached $2.97 billion, up 2.6% year over year.
• The company announced a quarterly dividend of $0.2925, equivalent to $1.17 annually and a 4.7% yield; however, its dividend payout ratio is elevated at 137.65%.

Shares of Hormel Foods Corporation (NYSE:HRL - Get Free Report) have received an average recommendation of "Hold" from the nine ratings firms that are presently covering the company, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, six have assigned a hold recommendation and two have issued a buy recommendation on the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $26.1429.

A number of brokerages have recently weighed in on HRL. Weiss Ratings reissued a "sell (d+)" rating on shares of Hormel Foods in a report on Friday, July 17th. BNP Paribas Exane raised their target price on Hormel Foods from $26.00 to $27.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 14th. Stephens reaffirmed an "equal weight" rating and set a $25.00 price target on shares of Hormel Foods in a research report on Thursday, July 9th. The Goldman Sachs Group set a $25.00 price target on Hormel Foods in a research note on Thursday, May 21st. Finally, Bank of America increased their price objective on Hormel Foods from $25.00 to $27.00 and gave the company a "neutral" rating in a report on Tuesday, June 30th.

Hormel Foods Stock Up 0.1%

HRL stock opened at $25.03 on Monday. The stock has a market capitalization of $13.77 billion, a PE ratio of 29.44, a price-to-earnings-growth ratio of 2.88 and a beta of 0.34. Hormel Foods has a 52 week low of $19.70 and a 52 week high of $29.34. The company has a quick ratio of 0.97, a current ratio of 1.94 and a debt-to-equity ratio of 0.30. The firm has a 50 day moving average of $24.49 and a 200 day moving average of $23.43.

Hormel Foods (NYSE:HRL - Get Free Report) last issued its quarterly earnings results on Wednesday, May 27th. The company reported $0.40 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.35 by $0.05. The business had revenue of $2.97 billion for the quarter, compared to analyst estimates 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 quarter in the prior year, the business posted $0.35 EPS. Sell-side analysts forecast that Hormel Foods will post 1.5 earnings per share for the current year.

Hormel Foods Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 17th. Investors of record on Monday, July 13th will be given a $0.2925 dividend. The ex-dividend date is Monday, July 13th. This represents a $1.17 dividend on an annualized basis and a yield of 4.7%. Hormel Foods's dividend payout ratio is currently 137.65%.

Insiders Place Their Bets

In other Hormel Foods news, Director Gary C. Bhojwani sold 20,200 shares of the firm's stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $24.51, for a total transaction of $495,102.00. Following the completion of the transaction, the director directly owned 32,002 shares of the company's stock, valued at approximately $784,369.02. This trade represents a 38.70% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 0.58% of the company's stock.

Institutional Trading of Hormel Foods

A number of hedge funds and other institutional investors have recently made changes to their positions in HRL. MUFG Securities EMEA plc acquired a new position in Hormel Foods during the second quarter valued at $26,000. Strive Financial Group LLC purchased a new stake in Hormel Foods in the fourth quarter valued at $27,000. Motiv8 Investments LLC acquired a new stake in Hormel Foods during the 4th quarter worth about $28,000. Parkside Financial Bank & Trust grew its position in Hormel Foods by 354.7% during the 4th quarter. Parkside Financial Bank & Trust now owns 1,314 shares of the company's stock worth $31,000 after purchasing an additional 1,025 shares during the period. Finally, EverSource Wealth Advisors LLC raised its stake in shares of Hormel Foods by 57.5% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,455 shares of the company's stock valued at $33,000 after buying an additional 531 shares during the last quarter. Institutional investors and hedge funds own 40.99% of the company's stock.

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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