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

Key Points

• Pilgrim's Pride hit a new 52-week low of $30.21 and last traded around $31.12 on elevated volume, trading well below its 50‑day and 200‑day moving averages ($36.83 and $38.69); market cap is about $7.45B with a P/E of 8.38.
• Analysts have been trimming ratings and targets—Zacks cut to "strong sell," others lowered price objectives while Barclays raised to "overweight"—leaving a consensus "Hold" rating and an average price target of $40.25 (2 Buy, 3 Hold, 1 Sell).
• Recent quarter showed an earnings surprise to the downside with EPS of $0.51 vs. a $0.69 estimate, though revenue of $4.53B topped forecasts; the company reported a 28.57% ROE and a net margin of 4.78%, and analysts expect FY EPS of 3.87.

Pilgrim's Pride Corporation (NASDAQ:PPC - Get Free Report)'s stock price hit a new 52-week low on Tuesday . The stock traded as low as $30.21 and last traded at $31.1220, with a volume of 239448 shares traded. The stock had previously closed at $30.59.

Analysts Set New Price Targets

Several brokerages have weighed in on PPC. Zacks Research cut Pilgrim's Pride from a "hold" rating to a "strong sell" rating in a report on Wednesday, February 11th. Wall Street Zen cut Pilgrim's Pride from a "buy" rating to a "hold" rating in a report on Sunday, February 15th. BMO Capital Markets dropped their price objective on Pilgrim's Pride from $42.00 to $40.00 and set a "market perform" rating for the company in a report on Wednesday, March 25th. The Goldman Sachs Group dropped their price objective on Pilgrim's Pride from $44.00 to $39.00 and set a "neutral" rating for the company in a report on Thursday, April 9th. Finally, Barclays raised Pilgrim's Pride from an "equal weight" rating to an "overweight" rating and dropped their price objective for the stock from $45.00 to $42.00 in a report on Friday. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $40.25.

Pilgrim's Pride Price Performance

The company has a market capitalization of $7.45 billion, a price-to-earnings ratio of 8.38 and a beta of 0.33. The company has a 50-day moving average price of $36.83 and a 200-day moving average price of $38.69. The company has a debt-to-equity ratio of 0.83, a quick ratio of 0.73 and a current ratio of 1.48.

Pilgrim's Pride (NASDAQ:PPC - Get Free Report) last posted its earnings results on Wednesday, April 29th. The company reported $0.51 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.69 by ($0.18). The company had revenue of $4.53 billion for the quarter, compared to analyst estimates of $4.43 billion. Pilgrim's Pride had a return on equity of 28.57% and a net margin of 4.78%.Pilgrim's Pride's quarterly revenue was up 1.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.31 earnings per share. On average, equities research analysts expect that Pilgrim's Pride Corporation will post 3.87 EPS for the current fiscal year.

Insider Transactions at Pilgrim's Pride

In other Pilgrim's Pride news, CFO Matthew R. Galvanoni sold 6,963 shares of the business's stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $43.52, for a total value of $303,029.76. Following the completion of the transaction, the chief financial officer directly owned 91,397 shares of the company's stock, valued at approximately $3,977,597.44. The trade was a 7.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 82.23% of the company's stock.

Hedge Funds Weigh In On Pilgrim's Pride

Several institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. grew its position in shares of Pilgrim's Pride by 2.3% in the 4th quarter. Vanguard Group Inc. now owns 5,804,210 shares of the company's stock valued at $226,306,000 after purchasing an additional 131,482 shares during the period. AQR Capital Management LLC grew its position in shares of Pilgrim's Pride by 18.7% in the 3rd quarter. AQR Capital Management LLC now owns 4,482,124 shares of the company's stock valued at $182,512,000 after purchasing an additional 705,946 shares during the period. Dimensional Fund Advisors LP grew its position in shares of Pilgrim's Pride by 27.7% in the 4th quarter. Dimensional Fund Advisors LP now owns 3,418,398 shares of the company's stock valued at $133,296,000 after purchasing an additional 742,204 shares during the period. Bank of America Corp DE grew its position in shares of Pilgrim's Pride by 22.9% in the 2nd quarter. Bank of America Corp DE now owns 2,171,836 shares of the company's stock valued at $97,689,000 after purchasing an additional 404,915 shares during the period. Finally, State Street Corp grew its position in shares of Pilgrim's Pride by 7.0% in the 4th quarter. State Street Corp now owns 1,661,307 shares of the company's stock valued at $64,774,000 after purchasing an additional 108,949 shares during the period. 16.64% of the stock is currently owned by institutional investors and hedge funds.

Pilgrim's Pride Company Profile

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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