Bank of America Issues Pessimistic Forecast for Hormel Foods (NYSE:HRL) Stock Price

Key Points

• Analysts at Bank of America have cut Hormel Foods' target price from $35.00 to $28.00, currently maintaining a "neutral" rating on the stock.
• Despite the downgrade, Hormel Foods has a potential upside of 10.91% from its last close, and the stock has an average target price of $32.13 based on analyst ratings.
• The company reported $0.35 EPS for its latest quarter, missing estimates, but its revenue was up 4.6% year-over-year, totaling $3.03 billion.

Hormel Foods (NYSE:HRL - Free Report) had its price target cut by Bank of America from $35.00 to $28.00 in a research note released on Friday morning,Benzinga reports. They currently have a neutral rating on the stock.

Several other research firms also recently weighed in on HRL. BNP Paribas raised shares of Hormel Foods from a "strong sell" rating to a "hold" rating in a report on Tuesday, May 27th. The Goldman Sachs Group started coverage on shares of Hormel Foods in a report on Monday, June 23rd. They issued a "buy" rating and a $35.00 price objective for the company. BNP Paribas Exane raised shares of Hormel Foods from an "underperform" rating to a "neutral" rating and set a $30.00 price objective for the company in a report on Tuesday, May 27th. JPMorgan Chase & Co. raised shares of Hormel Foods from a "neutral" rating to an "overweight" rating and upped their price objective for the stock from $29.00 to $34.00 in a report on Wednesday, August 20th. Finally, Stephens reaffirmed an "equal weight" rating and issued a $31.00 price objective on shares of Hormel Foods in a report on Thursday, May 22nd. Four investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $30.88.

Hormel Foods Stock Performance

Shares of HRL traded up $0.32 during midday trading on Friday, hitting $25.35. 2,152,616 shares of the stock traded hands, compared to its average volume of 3,279,809. Hormel Foods has a 1-year low of $23.71 and a 1-year high of $33.80. The firm has a market capitalization of $13.94 billion, a PE ratio of 18.51, a price-to-earnings-growth ratio of 5.67 and a beta of 0.31. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.17 and a current ratio of 2.47. The business's 50 day moving average price is $29.01 and its two-hundred day moving average price is $29.58.

Hormel Foods (NYSE:HRL - Get Free Report) last announced its quarterly earnings results 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 net margin of 6.26% and a return on equity of 10.06%. The firm had revenue of $3.03 billion for the quarter, compared to analyst estimates of $2.98 billion. During the same period last year, the firm posted $0.37 EPS. The business's revenue was up 4.6% compared to the same quarter last year. Hormel Foods has set its Q4 2025 guidance at 0.380-0.400 EPS. FY 2025 guidance at 1.430-1.450 EPS. Equities research analysts predict that Hormel Foods will post 1.65 EPS for the current fiscal year.

Institutional Trading of Hormel Foods

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Revisor Wealth Management LLC raised its holdings in Hormel Foods by 3.3% during the 2nd quarter. Revisor Wealth Management LLC now owns 11,342 shares of the company's stock worth $357,000 after buying an additional 360 shares during the period. Exeter Financial LLC raised its holdings in Hormel Foods by 2.3% during the 1st quarter. Exeter Financial LLC now owns 16,809 shares of the company's stock worth $520,000 after buying an additional 381 shares during the period. G&S Capital LLC raised its holdings in Hormel Foods by 2.6% during the 2nd quarter. G&S Capital LLC now owns 15,914 shares of the company's stock worth $481,000 after buying an additional 398 shares during the period. Simmons Bank raised its holdings in Hormel Foods by 3.7% during the 1st quarter. Simmons Bank now owns 12,708 shares of the company's stock worth $393,000 after buying an additional 448 shares during the period. Finally, Sovereign Financial Group Inc. raised its holdings in Hormel Foods by 2.7% during the 1st quarter. Sovereign Financial Group Inc. now owns 17,718 shares of the company's stock worth $548,000 after buying an additional 458 shares during the period. Institutional investors and hedge funds 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.