Hormel Foods (NYSE:HRL) Hits New 52-Week Low - What's Next?

Key Points

• Hormel Foods shares fell to a new 52-week low of $18.96, trading below both their 50-day and 200-day moving averages. Analysts maintain a consensus “Hold” rating with an average price target of $25.71.
• Recent quarterly results were mixed: earnings per share of $0.37 exceeded estimates, but revenue of $2.96 billion missed expectations and declined 2.4% year over year.
• Hormel declared a quarterly dividend of $0.2925, equivalent to a 6.1% annualized yield, although its payout ratio is elevated at 185.71%; Chairman William Newlands also purchased 10,000 shares.

Shares of Hormel Foods Corporation (NYSE:HRL - Get Free Report) hit a new 52-week low on Wednesday. The stock traded as low as $18.96 and last traded at $19.2170, with a volume of 4,380,659 shares traded. The stock had previously closed at $19.30.

Analysts Set New Price Targets

Several research analysts recently issued reports on the company. Piper Sandler reaffirmed a "neutral" rating on shares of Hormel Foods in a research report on Tuesday, October 6th. JPMorgan Chase & Co. raised their price target on Hormel Foods from $25.00 to $26.00 and gave the stock a "neutral" rating in a report on Friday, August 14th. Weiss Ratings downgraded Hormel Foods from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, August 28th. Stephens set a $23.00 price target on Hormel Foods in a research note on Friday, August 28th. Finally, Bank of America upped their price objective on shares of Hormel Foods from $25.00 to $27.00 and gave the company a "neutral" rating in a report on Tuesday, June 30th. Two research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $25.71.

Hormel Foods Stock Down 0.4%

The company has a quick ratio of 0.92, a current ratio of 1.88 and a debt-to-equity ratio of 0.30. The company has a market capitalization of $10.58 billion, a price-to-earnings ratio of 13.50, a P/E/G ratio of 2.27 and a beta of 0.30. The business's 50-day moving average is $21.76 and its 200-day moving average is $22.61.

Hormel Foods (NYSE:HRL - Get Free Report) last announced its quarterly earnings results on Wednesday, August 26th. The company reported $0.37 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.02. The company had revenue of $2.96 billion for the quarter, compared to the consensus estimate of $3.03 billion. Hormel Foods had a return on equity of 9.91% and a net margin of 2.82%. The firm's revenue for the quarter was down 2.4% compared to the same quarter last year. During the same period last year, the firm earned $0.35 EPS. As a group, equities analysts predict that Hormel Foods Corporation will post 1.48 earnings per share for the current year.

Hormel Foods Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, November 16th. Stockholders of record on Tuesday, October 13th will be paid a $0.2925 dividend. The ex-dividend date is Tuesday, October 13th. This represents a $1.17 dividend on an annualized basis and a dividend yield of 6.1%. Hormel Foods's dividend payout ratio is presently 185.71%.

Insider Activity at Hormel Foods

In related news, Chairman William A. Newlands bought 10,000 shares of the company's stock in a transaction that occurred on Monday, October 5th. The shares were purchased at an average cost of $20.10 per share, with a total value of $201,000.00. Following the completion of the acquisition, the chairman directly owned 76,375 shares in the company, valued at approximately $1,535,137.50. The trade was a 15.07% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.58% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Castleview Partners LLC boosted its position in Hormel Foods by 16.4% in the 3rd quarter. Castleview Partners LLC now owns 26,733 shares of the company's stock worth $533,000 after purchasing an additional 3,763 shares in the last quarter. Farther Finance Advisors LLC increased its holdings in shares of Hormel Foods by 131.4% during the 3rd quarter. Farther Finance Advisors LLC now owns 71,510 shares of the company's stock valued at $1,426,000 after purchasing an additional 40,605 shares in the last quarter. Adams Asset Advisors LLC increased its holdings in shares of Hormel Foods by 1.6% during the 3rd quarter. Adams Asset Advisors LLC now owns 303,472 shares of the company's stock valued at $6,051,000 after purchasing an additional 4,676 shares in the last quarter. Quintet Private Bank Europe S.A. increased its holdings in shares of Hormel Foods by 100.0% during the 3rd quarter. Quintet Private Bank Europe S.A. now owns 5,200 shares of the company's stock valued at $104,000 after purchasing an additional 2,600 shares in the last quarter. Finally, Juncture Wealth Strategies LLC lifted its stake in shares of Hormel Foods by 13.8% in the 3rd quarter. Juncture Wealth Strategies LLC now owns 15,723 shares of the company's stock valued at $314,000 after purchasing an additional 1,904 shares during the period. 40.99% of the stock is owned by institutional investors and hedge funds.

Hormel Foods Company Profile

Hormel Foods Corporation is a global food company headquartered in Austin, Minnesota. Founded in 1891 by George A. Hormel, the company began as a meat processor and has expanded into a broad portfolio of branded food products sold through retail, foodservice and international channels.

Its products include refrigerated and shelf-stable meat, deli meats, bacon, pepperoni, sausages, canned foods, nut products and other prepared foods. Key brands include Hormel, SPAM, Jennie-O, Applegate, Columbus and Planters.

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