Pilgrim's Pride Corporation (NASDAQ:PPC) Short Interest Update

Key Points

• Short interest fell 21.8% to 4,941,669 shares as of March 31, equal to 11.9% of the stock and a days-to-cover ratio of 5.0 (based on average daily volume of 988,306 shares).
• Analyst sentiment is largely a "Hold" with a consensus price target of $41.33, amid several recent downgrades and price-target cuts (e.g., Goldman Sachs $44→$39, BMO $42→$40 and a Zacks downgrade to "strong sell").
• Recent results and valuation: Pilgrim's Pride missed Q results on EPS ($0.64 vs. $0.78 cons.) but topped revenue expectations ($4.52B vs. $4.39B), and the stock trades around $35.09 with a PE of 7.73 and a 1‑year range of $34.39–$55.18.

Pilgrim's Pride Corporation (NASDAQ:PPC - Get Free Report) was the recipient of a significant decline in short interest in March. As of March 31st, there was short interest totaling 4,941,669 shares, a decline of 21.8% from the March 15th total of 6,316,518 shares. Currently, 11.9% of the company's stock are short sold. Based on an average daily volume of 988,306 shares, the short-interest ratio is presently 5.0 days.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on PPC. Wall Street Zen downgraded shares of Pilgrim's Pride from a "buy" rating to a "hold" rating in a research note on Sunday, February 15th. Weiss Ratings reiterated a "hold (c)" rating on shares of Pilgrim's Pride in a research note on Monday, December 29th. The Goldman Sachs Group lowered their target price on shares of Pilgrim's Pride from $44.00 to $39.00 and set a "neutral" rating for the company in a research note on Thursday, April 9th. BMO Capital Markets reduced their price target on shares of Pilgrim's Pride from $42.00 to $40.00 and set a "market perform" rating for the company in a research report on Wednesday, March 25th. Finally, Zacks Research cut shares of Pilgrim's Pride from a "hold" rating to a "strong sell" rating in a research report on Wednesday, February 11th. One equities research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $41.33.

Insider Activity at Pilgrim's Pride

In related news, CFO Matthew R. Galvanoni sold 6,963 shares of the business's stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $43.52, for a total transaction of $303,029.76. Following the completion of the transaction, the chief financial officer owned 91,397 shares in the company, valued at approximately $3,977,597.44. The trade was a 7.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 82.23% of the company's stock.

Institutional Investors Weigh In On Pilgrim's Pride

A number of institutional investors and hedge funds have recently bought and sold shares of PPC. Torren Management LLC purchased a new stake in Pilgrim's Pride in the fourth quarter valued at $31,000. MCF Advisors LLC acquired a new stake in shares of Pilgrim's Pride during the fourth quarter worth about $35,000. True Wealth Design LLC boosted its stake in shares of Pilgrim's Pride by 1,248.5% during the third quarter. True Wealth Design LLC now owns 917 shares of the company's stock worth $37,000 after buying an additional 849 shares during the period. Kingdom Financial Group LLC. acquired a new stake in shares of Pilgrim's Pride during the fourth quarter worth about $37,000. Finally, Abich Financial Wealth Management LLC acquired a new stake in shares of Pilgrim's Pride during the third quarter worth about $41,000. 16.64% of the stock is owned by hedge funds and other institutional investors.

Pilgrim's Pride Price Performance

Shares of PPC opened at $35.09 on Wednesday. Pilgrim's Pride has a 1-year low of $34.39 and a 1-year high of $55.18. The stock has a market cap of $8.35 billion, a PE ratio of 7.73 and a beta of 0.46. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.47 and a quick ratio of 0.76. The firm has a fifty day moving average price of $39.23 and a 200 day moving average price of $39.21.

Pilgrim's Pride (NASDAQ:PPC - Get Free Report) last announced its quarterly earnings results on Wednesday, February 11th. The company reported $0.64 earnings per share for the quarter, missing analysts' consensus estimates of $0.78 by ($0.14). Pilgrim's Pride had a net margin of 5.85% and a return on equity of 35.15%. The company had revenue of $4.52 billion during the quarter, compared to analysts' expectations of $4.39 billion. During the same period last year, the firm earned $1.35 earnings per share. Pilgrim's Pride's revenue was up 3.3% on a year-over-year basis. As a group, sell-side analysts anticipate that Pilgrim's Pride will post 5.13 EPS for the current year.

About Pilgrim's Pride

Pilgrim's Pride Corporation is a leading poultry producer in the United States and Mexico and a wholly owned subsidiary of JBS SA Headquartered in Greeley, Colorado, and Pittsburg, Texas, the company specializes in the production, processing and distribution of fresh, frozen and value-added chicken products. Pilgrim's Pride serves a diverse customer base that includes retail grocery chains, foodservice distributors and restaurant operators across North America and in select international markets.

The company's vertically integrated operations encompass breeding, hatching, feed milling, processing plants and cold storage facilities.

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