Hormel Foods (NYSE:HRL) Sets New 12-Month Low - Should You Sell?

Key Points

• Hormel Foods shares hit a new 52-week low on Monday, trading as low as $20.32 and last around $20.16, well below recent moving averages.
• Analyst sentiment is mixed but cautious: the stock has an average Hold rating, with a consensus price target of $27.00 after JPMorgan cut its target to $23.00 and other firms kept neutral or sell views.
• Hormel reported mixed fundamentals, beating quarterly EPS expectations at $0.34 but missing revenue estimates, while also maintaining a 5.8% dividend yield that comes with a high payout ratio of 131.46%.

Shares of Hormel Foods Corporation (NYSE:HRL - Get Free Report) reached a new 52-week low on Monday . The stock traded as low as $20.32 and last traded at $20.1550, with a volume of 232339 shares traded. The stock had previously closed at $20.44.

Analyst Upgrades and Downgrades

A number of research analysts have commented on HRL shares. Wall Street Zen upgraded shares of Hormel Foods from a "sell" rating to a "hold" rating in a research report on Saturday, January 17th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Hormel Foods in a research report on Tuesday, April 21st. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $23.00 price target (down from $28.00) on shares of Hormel Foods in a research report on Thursday, April 9th. Finally, Stephens increased their price target on shares of Hormel Foods from $25.00 to $27.00 and gave the company an "equal weight" rating in a research report on Friday, February 27th. Two analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $27.00.

Hormel Foods Stock Performance

The stock has a market cap of $11.06 billion, a PE ratio of 22.58, a price-to-earnings-growth ratio of 2.48 and a beta of 0.33. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.66 and a quick ratio of 1.37. The business has a 50 day moving average price of $22.37 and a two-hundred day moving average price of $23.17.

Hormel Foods (NYSE:HRL - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported $0.34 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.32 by $0.02. Hormel Foods had a return on equity of 9.38% and a net margin of 4.03%.The company had revenue of $3.03 billion during the quarter, compared to the consensus estimate of $3.07 billion. During the same period in the previous year, the company posted $0.35 EPS. The firm's revenue was up 1.3% on a year-over-year basis. Hormel Foods has set its FY 2026 guidance at 1.430-1.510 EPS. As a group, equities research analysts forecast that Hormel Foods Corporation will post 1.42 EPS for the current fiscal year.

Hormel Foods Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Monday, April 13th will be issued a dividend of $0.2925 per share. This represents a $1.17 annualized dividend and a yield of 5.8%. The ex-dividend date is Monday, April 13th. Hormel Foods's dividend payout ratio is presently 131.46%.

Institutional Trading of Hormel Foods

Hedge funds and other institutional investors have recently bought and sold shares of the stock. PNC Financial Services Group Inc. grew its position in Hormel Foods by 14.6% in the 1st quarter. PNC Financial Services Group Inc. now owns 83,107 shares of the company's stock valued at $1,882,000 after acquiring an additional 10,604 shares during the last quarter. Oslo Pensjonsforsikring AS bought a new position in Hormel Foods in the 1st quarter valued at $155,000. Baader Bank Aktiengesellschaft grew its position in Hormel Foods by 5.6% in the 1st quarter. Baader Bank Aktiengesellschaft now owns 25,536 shares of the company's stock valued at $566,000 after acquiring an additional 1,364 shares during the last quarter. Cassaday & Co Wealth Management LLC bought a new position in Hormel Foods in the 1st quarter valued at $144,000. Finally, Commerzbank Aktiengesellschaft FI grew its position in Hormel Foods by 252.3% in the 1st quarter. Commerzbank Aktiengesellschaft FI now owns 82,558 shares of the company's stock valued at $1,870,000 after acquiring an additional 59,122 shares during the last quarter. Hedge funds and other institutional investors own 40.99% of the company's stock.

Hormel Foods Company Profile

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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