Hormel Foods (NYSE:HRL) Price Target Cut to $28.00 by Analysts at Bank of America

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 - Get Free Report) had its target price cut by investment analysts at Bank of America from $35.00 to $28.00 in a research note issued on Friday,Benzinga reports. The firm currently has a "neutral" rating on the stock. Bank of America's target price points to a potential upside of 10.91% from the company's previous close.

A number of other research analysts have also recently commented on the stock. BNP Paribas Exane raised shares of Hormel Foods from an "underperform" rating to a "neutral" rating and set a $30.00 target price on the stock in a research report on Tuesday, May 27th. Stephens reiterated an "equal weight" rating and issued a $31.00 target price on shares of Hormel Foods in a report on Thursday, May 22nd. JPMorgan Chase & Co. raised Hormel Foods from a "neutral" rating to an "overweight" rating and upped their target price for the stock from $29.00 to $34.00 in a research report on Wednesday, August 20th. BNP Paribas raised Hormel Foods from a "strong sell" rating to a "hold" rating in a research report on Tuesday, May 27th. Finally, The Goldman Sachs Group began coverage on Hormel Foods in a research note on Monday, June 23rd. They set a "buy" rating and a $35.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $32.13.

Hormel Foods Stock Performance

NYSE:HRL opened at $25.25 on Friday. The company's 50-day moving average is $29.33 and its two-hundred day moving average is $29.65. 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 has a 1-year low of $23.71 and a 1-year high of $33.80. The firm has a market capitalization of $13.88 billion, a price-to-earnings ratio of 18.56, a PEG ratio of 3.30 and a beta of 0.31.

Hormel Foods (NYSE:HRL - Get Free Report) last announced its quarterly earnings data on Thursday, August 28th. The company reported $0.35 EPS for the quarter, missing analysts' consensus estimates of $0.41 by ($0.06). The firm had revenue of $3.03 billion during the quarter, compared to analysts' expectations of $2.98 billion. Hormel Foods had a net margin of 6.27% and a return on equity of 10.20%. The company's revenue for the quarter was up 4.6% on a year-over-year basis. During the same period in the prior year, the company posted $0.37 earnings per share. Hormel Foods has set its Q4 2025 guidance at 0.380-0.400 EPS. FY 2025 guidance at 1.430-1.450 EPS. Analysts forecast that Hormel Foods will post 1.65 EPS for the current year.

Hedge Funds Weigh In On Hormel Foods

Institutional investors have recently added to or reduced their stakes in the business. Integrated Wealth Concepts LLC purchased a new stake in Hormel Foods in the 4th quarter worth approximately $616,000. The Manufacturers Life Insurance Company grew its stake in shares of Hormel Foods by 1.3% during the fourth quarter. The Manufacturers Life Insurance Company now owns 198,193 shares of the company's stock valued at $6,217,000 after buying an additional 2,468 shares during the last quarter. Northern Trust Corp raised its holdings in Hormel Foods by 11.5% in the fourth quarter. Northern Trust Corp now owns 2,966,225 shares of the company's stock worth $93,050,000 after purchasing an additional 306,567 shares in the last quarter. Comerica Bank lifted its holdings in shares of Hormel Foods by 4.3% during the 4th quarter. Comerica Bank now owns 54,129 shares of the company's stock valued at $1,698,000 after purchasing an additional 2,226 shares during the last quarter. Finally, DoubleLine ETF Adviser LP grew its position in Hormel Foods by 3.0% during the 4th quarter. DoubleLine ETF Adviser LP now owns 17,239 shares of the company's stock worth $541,000 after purchasing an additional 497 shares during the period. 40.99% of the stock is currently owned by institutional investors.

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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