Pilgrim's Pride (NASDAQ:PPC) Hits New 1-Year Low - What's Next?

Key Points

• Pilgrim's Pride hit a new 52-week low, trading as low as $34.37 (last $34.48) on volume of ~33,089 shares; the stock has a market cap of ~$8.2B and a PE of 7.59, with 50- and 200-day moving averages near $39.2.
• Analyst sentiment is a consensus Hold with an average price target of $41 after several recent downgrades and target cuts (e.g., Goldman $39, BMO $40); current breakdown: 1 Buy, 4 Hold, 1 Sell.
• Recent quarterly results showed EPS of $0.64, below the $0.78 estimate while revenue of $4.52B topped expectations, and the CFO sold 6,963 shares; the report also notes unusually high insider ownership at ~82.23%.

Pilgrim's Pride Corporation (NASDAQ:PPC - Get Free Report)'s stock price reached a new 52-week low on Wednesday . The stock traded as low as $34.37 and last traded at $34.4810, with a volume of 33089 shares trading hands. The stock had previously closed at $35.09.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on PPC. Stephens set a $40.00 target price on shares of Pilgrim's Pride in a report on Wednesday. Wall Street Zen lowered shares of Pilgrim's Pride from a "buy" rating to a "hold" rating in a report on Sunday, February 15th. BMO Capital Markets reduced their target price on shares of Pilgrim's Pride from $42.00 to $40.00 and set a "market perform" rating on the stock in a report on Wednesday, March 25th. Zacks Research lowered shares of Pilgrim's Pride from a "hold" rating to a "strong sell" rating in a report on Wednesday, February 11th. Finally, The Goldman Sachs Group reduced their target price on shares of Pilgrim's Pride from $44.00 to $39.00 and set a "neutral" rating on the stock in a report on Thursday, April 9th. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $41.00.

Pilgrim's Pride Price Performance

The stock has a market cap of $8.20 billion, a PE ratio of 7.59 and a beta of 0.46. The company has a current ratio of 1.47, a quick ratio of 0.76 and a debt-to-equity ratio of 0.84. The company's 50 day moving average is $39.23 and its 200-day moving average is $39.21.

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

Insider Transactions at Pilgrim's Pride

In related news, CFO Matthew R. Galvanoni sold 6,963 shares of Pilgrim's Pride 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 sale, the chief financial officer owned 91,397 shares of the company's stock, valued at $3,977,597.44. The trade was a 7.08% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 82.23% of the stock is owned by company insiders.

Institutional Investors Weigh In On Pilgrim's Pride

Hedge funds and other institutional investors have recently modified their holdings of the stock. Torren Management LLC bought a new stake in shares of Pilgrim's Pride in the 4th quarter worth about $31,000. MCF Advisors LLC bought a new stake in shares of Pilgrim's Pride in the 4th quarter worth about $35,000. True Wealth Design LLC increased its position in shares of Pilgrim's Pride by 1,248.5% in the 3rd quarter. True Wealth Design LLC now owns 917 shares of the company's stock worth $37,000 after purchasing an additional 849 shares during the last quarter. Kingdom Financial Group LLC. bought a new stake in shares of Pilgrim's Pride in the 4th quarter worth about $37,000. Finally, Abich Financial Wealth Management LLC bought a new stake in shares of Pilgrim's Pride in the 3rd quarter worth about $41,000. Institutional investors own 16.64% of the company's stock.

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.

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.