Stock Traders Buy Large Volume of Hormel Foods Put Options (NYSE:HRL)

Key Points

• Unusual bearish options activity: Investors bought 8,612 Hormel Foods put options, 156% above the average daily volume, signaling increased bearish sentiment or hedging. The stock fell $2.19 to $21.52 during Thursday trading.
• Mixed quarterly results: Hormel reported adjusted EPS of $0.37, beating estimates of $0.35, but revenue declined 2.4% year over year to $2.96 billion and missed expectations. The company also reduced its full-year sales outlook while raising and narrowing its adjusted EPS guidance.
• Analysts remain cautious: Hormel has an average “Hold” rating, with two Buy ratings and seven Holds, and an average price target of $26.57. Director Gary C. Bhojwani also sold 20,200 shares, reducing his position by 38.7%.

Hormel Foods Corporation (NYSE:HRL - Get Free Report) was the recipient of some unusual options trading activity on Thursday. Investors bought 8,612 put options on the stock. This is an increase of 156% compared to the average daily volume of 3,365 put options.

Insiders Place Their Bets

In other Hormel Foods news, Director Gary C. Bhojwani sold 20,200 shares of the company's stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $24.51, for a total transaction of $495,102.00. Following the transaction, the director owned 32,002 shares in the company, valued at approximately $784,369.02. This represents a 38.70% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.58% of the company's stock.

Hedge Funds Weigh In On Hormel Foods

Institutional investors have recently added to or reduced their stakes in the stock. Caxton Associates LLP purchased a new position in Hormel Foods during the first quarter worth about $310,000. Empowered Funds LLC grew its position in shares of Hormel Foods by 1.8% during the first quarter. Empowered Funds LLC now owns 57,500 shares of the company's stock worth $1,779,000 after buying an additional 993 shares in the last quarter. Woodline Partners LP grew its holdings in Hormel Foods by 40.8% during the 1st quarter. Woodline Partners LP now owns 24,583 shares of the company's stock worth $761,000 after acquiring an additional 7,129 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in shares of Hormel Foods by 214.4% during the second quarter. EverSource Wealth Advisors LLC now owns 4,731 shares of the company's stock worth $143,000 after purchasing an additional 3,226 shares in the last quarter. Finally, Cerity Partners LLC raised its position in shares of Hormel Foods by 76.5% during the 2nd quarter. Cerity Partners LLC now owns 103,616 shares of the company's stock worth $3,134,000 after acquiring an additional 44,906 shares in the last quarter. Hedge funds and other institutional investors own 40.99% of the company's stock.

Hormel Foods Price Performance

NYSE HRL traded down $2.19 during trading hours on Thursday, reaching $21.52. The company's stock had a trading volume of 10,849,834 shares, compared to its average volume of 4,822,662. The firm has a market capitalization of $11.84 billion, a price-to-earnings ratio of 25.28, a P/E/G ratio of 2.74 and a beta of 0.34. The company's 50-day moving average is $24.87 and its two-hundred day moving average is $23.41. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.94 and a quick ratio of 0.97. Hormel Foods has a 1-year low of $19.70 and a 1-year high of $26.60.

Hormel Foods (NYSE:HRL - Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The company reported $0.37 EPS for the quarter, beating analysts' consensus estimates of $0.35 by $0.02. Hormel Foods had a return on equity of 9.74% and a net margin of 3.82%.The business had revenue of $2.96 billion during the quarter, compared to analysts' expectations of $3.03 billion. During the same period in the previous year, the business earned $0.35 earnings per share. The business's revenue was down 2.4% compared to the same quarter last year. On average, equities analysts predict that Hormel Foods will post 1.5 EPS for the current year.

Analysts Set New Price Targets

HRL has been the subject of several research analyst reports. BNP Paribas Exane raised their price objective on Hormel Foods from $26.00 to $27.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 14th. Weiss Ratings upgraded shares of Hormel Foods from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, August 12th. The Goldman Sachs Group set a $25.00 price target on Hormel Foods in a research report on Thursday, May 21st. Bank of America upped their target price on Hormel Foods from $25.00 to $27.00 and gave the stock a "neutral" rating in a research note on Tuesday, June 30th. Finally, Stephens reiterated an "equal weight" rating and set a $25.00 price target on shares of Hormel Foods in a research report on Thursday, July 9th. Two analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $26.57.

Key Stories Impacting Hormel Foods

Here are the key news stories impacting Hormel Foods this week:

• Positive Sentiment: Adjusted earnings beat estimates and guidance was raised. Hormel reported adjusted EPS of $0.37, above analyst expectations of roughly $0.35-$0.36 and up from $0.35 a year earlier. The company raised and narrowed its fiscal 2026 adjusted EPS outlook to $1.45-$1.51, with the lower end improving despite the sales weakness. Hormel Foods Beats Q3 Earnings Estimates
• Positive Sentiment: Foodservice remained a relative bright spot. Foodservice sales increased 2%, and operating cash flow rose 54% to $240.6 million, providing some support for the company’s earnings and liquidity profile. Hormel Foods Reports Third Quarter Fiscal 2026 Results
• Neutral Sentiment: Hormel appointed a former Tyson executive as chief financial officer. The leadership change may affect the company’s financial strategy, but its near-term effect on earnings and valuation is unclear. Hormel Foods Names Former Tyson Executive CFO
• Negative Sentiment: Revenue missed expectations and declined year over year. Third-quarter sales were $2.96 billion, below estimates near $3.03-$3.04 billion and down 2.4% from the prior year. Retail sales fell 4%, while international sales declined 5%, reflecting weak volumes and pressured consumer demand. Hormel Foods Cuts Annual Sales Forecast
• Negative Sentiment: Full-year sales guidance was reduced. Hormel now expects fiscal 2026 revenue of $12.1 billion-$12.2 billion, down from its prior forecast of $12.2 billion-$12.5 billion and roughly in line with the low end of consensus. The company cited lower turkey and nut prices, weak private-label snack-nut demand, and a challenging retail environment. Hormel Foods Cuts Sales Outlook
• Negative Sentiment: Profitability was hurt by weak volume and one-time charges. Reported net income fell sharply, with operating income declining to $110.9 million from $239.7 million. Brazil divestiture losses, an Indonesia investment impairment, and a litigation settlement added pressure. Unusually heavy put-option buying also signaled increased bearish or hedging activity. Hormel Foods Stock Falls on Reduced Sales Outlook

About Hormel Foods

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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