Hormel Foods (NYSE:HRL) was upgraded by Zacks Investment Research from a "sell" rating to a "hold" rating in a report issued on Tuesday, Zacks.com reports. The firm currently has a $50.00 price objective on the stock. Zacks Investment Research's target price points to a potential upside of 5.35% from the company's previous close.
According to Zacks, "Hormel Foods has lagged the industry in the past six months. The company is seeing declines in its foodservice business amid COVID-19-led social distancing. During first-quarter fiscal 2021, net sales in U.S. foodservice channel fell 17% year over year. That said, management expects to witness recovery in the foodservice industry in fiscal 2021. Apart from this, the company is facing higher supply-chain costs related to the pandemic. This hurt fiscal first-quarter earnings, which fell 9%. Nevertheless, the company is impressed with growth witnessed in the International & Other unit. Notably, sales in the segment rose 13% in the quarter. Also, Hormel Foods’ focus on innovation and boosting capacity with strategic investments are yielding. With rising health consciousness, the company is focusing on growing its plant-based food options."
A number of other research firms have also commented on HRL. Bank of America decreased their price objective on Hormel Foods from $45.00 to $44.00 and set an "underperform" rating on the stock in a research note on Wednesday, November 25th. Argus lowered Hormel Foods from a "buy" rating to a "hold" rating in a research note on Wednesday, December 9th. Finally, JPMorgan Chase & Co. decreased their price target on Hormel Foods from $44.00 to $40.00 in a research note on Tuesday, January 19th. One investment analyst has rated the stock with a sell rating and eight have assigned a hold rating to the company's stock. The stock presently has a consensus rating of "Hold" and a consensus target price of $46.38.
Shares of HRL traded up $0.18 during trading hours on Tuesday, reaching $47.46. 5,659 shares of the company traded hands, compared to its average volume of 3,410,551. The company has a quick ratio of 1.67, a current ratio of 2.38 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $25.62 billion, a PE ratio of 28.42, a price-to-earnings-growth ratio of 4.14 and a beta of -0.06. Hormel Foods has a fifty-two week low of $39.01 and a fifty-two week high of $52.97. The stock has a fifty day simple moving average of $46.78 and a 200 day simple moving average of $48.77.
Hormel Foods (NYSE:HRL) last posted its quarterly earnings data on Wednesday, February 17th. The company reported $0.41 EPS for the quarter, beating analysts' consensus estimates of $0.40 by $0.01. Hormel Foods had a return on equity of 14.55% and a net margin of 9.45%. During the same quarter last year, the company earned $0.45 EPS. Research analysts predict that Hormel Foods will post 1.76 EPS for the current fiscal year.
In other Hormel Foods news, SVP Steven J. Lykken acquired 6,873 shares of the company's stock in a transaction on Wednesday, December 2nd. The shares were bought at an average cost of $46.97 per share, for a total transaction of $322,824.81. Following the acquisition, the senior vice president now directly owns 26,720 shares of the company's stock, valued at $1,255,038.40. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.80% of the stock is owned by insiders.
A number of hedge funds have recently bought and sold shares of HRL. RWM Asset Management LLC purchased a new stake in Hormel Foods during the 4th quarter worth approximately $25,000. Capstone Triton Financial Group LLC acquired a new position in shares of Hormel Foods in the 4th quarter worth approximately $26,000. Massmutual Trust Co. FSB ADV acquired a new position in shares of Hormel Foods in the 3rd quarter worth approximately $30,000. CX Institutional grew its position in shares of Hormel Foods by 50.1% in the 4th quarter. CX Institutional now owns 686 shares of the company's stock worth $32,000 after acquiring an additional 229 shares in the last quarter. Finally, Meeder Asset Management Inc. grew its position in shares of Hormel Foods by 49.1% in the 4th quarter. Meeder Asset Management Inc. now owns 692 shares of the company's stock worth $32,000 after acquiring an additional 228 shares in the last quarter. Institutional investors own 42.78% of the company's stock.
Hormel Foods Company Profile
Hormel Foods Corporation produces and markets various meat and food products to retail, foodservice, deli, and commercial customers in the United States and internationally. The company operates through four segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other.
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