Hormel Foods (NYSE:HRL) Hits New 52-Week Low Following Weak Earnings

Key Points

• Hormel Foods Corporation shares fell to a new 52-week low of $23.71 following the announcement of weaker than expected quarterly earnings, with reported earnings per share at $0.35, missing estimates of $0.41.
• The company’s revenue reached $3.03 billion for the quarter, exceeding analyst estimates, although the net margin was reported at 6.27%.
• Despite the weak earnings, several analysts upgraded Hormel's stock rating, with price targets as high as $35.00 from Goldman Sachs, indicating a potential rebound in investor sentiment.

Shares of Hormel Foods Corporation (NYSE:HRL - Get Free Report) hit a new 52-week low during trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $23.71 and last traded at $25.13, with a volume of 5514976 shares changing hands. The stock had previously closed at $29.02.

The company reported $0.35 earnings per share for the quarter, missing analysts' consensus estimates of $0.41 by ($0.06). Hormel Foods had a net margin of 6.27% and a return on equity of 10.20%. 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 prior year, the business earned $0.37 earnings per share. The business's 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.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. JPMorgan Chase & Co. raised shares of Hormel Foods from a "neutral" rating to an "overweight" rating and lifted their price target for the company from $29.00 to $34.00 in a research note on Wednesday, August 20th. BNP Paribas Exane upgraded shares of Hormel Foods from an "underperform" rating to a "neutral" rating and set a $30.00 price objective on the stock in a report on Tuesday, May 27th. BNP Paribas upgraded shares of Hormel Foods from a "strong sell" rating to a "hold" rating in a report on Tuesday, May 27th. The Goldman Sachs Group began coverage on shares of Hormel Foods in a report on Monday, June 23rd. They issued a "buy" rating and a $35.00 price objective on the stock. Finally, Stephens reiterated an "equal weight" rating and issued a $31.00 price objective on shares of Hormel Foods in a report on Thursday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $33.00.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of HRL. Norges Bank acquired a new position in shares of Hormel Foods in the second quarter valued at approximately $101,201,000. Pacer Advisors Inc. increased its stake in shares of Hormel Foods by 9,725.4% in the first quarter. Pacer Advisors Inc. now owns 2,335,797 shares of the company's stock valued at $72,270,000 after buying an additional 2,312,024 shares during the period. Two Sigma Advisers LP increased its stake in shares of Hormel Foods by 496.3% in the fourth quarter. Two Sigma Advisers LP now owns 2,185,600 shares of the company's stock valued at $68,562,000 after buying an additional 1,819,100 shares during the period. Two Sigma Investments LP increased its stake in shares of Hormel Foods by 466.5% in the fourth quarter. Two Sigma Investments LP now owns 2,053,160 shares of the company's stock valued at $64,408,000 after buying an additional 1,690,746 shares during the period. Finally, Alyeska Investment Group L.P. boosted its holdings in Hormel Foods by 485.7% in the first quarter. Alyeska Investment Group L.P. now owns 1,963,632 shares of the company's stock valued at $60,755,000 after acquiring an additional 1,628,382 shares during the last quarter. Institutional investors and hedge funds own 40.99% of the company's stock.

Hormel Foods Price Performance

The company has a fifty day moving average of $29.42 and a 200 day moving average of $29.67. The firm has a market capitalization of $13.72 billion, a P/E ratio of 18.46, a PEG ratio of 3.27 and a beta of 0.31. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.47 and a quick ratio of 1.17.

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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