Hormel Foods (NYSE:HRL) Stock Price Down 8.6% - Here's What Happened

Key Points

• Hormel shares fell 8.6% to about $21.68 after the company reported quarterly revenue of $2.96 billion, down 2.4% year over year and below analysts’ $3.03 billion consensus.
• Adjusted EPS of $0.37 beat estimates and foodservice sales rose 2%, but weaker retail and international sales reflected pressured consumer demand. Hormel also lowered fiscal 2026 revenue guidance to $12.1-$12.2 billion and reduced GAAP EPS guidance to $1.06-$1.12.
• Analysts remain cautious, with an overall “Hold” rating and a consensus price target of $26.57; the company also appointed a former Tyson Foods executive as CFO amid ongoing attention to costs and portfolio strategy.

Shares of Hormel Foods Corporation (NYSE:HRL - Get Free Report) were down 8.6% during mid-day trading on Thursday . The company traded as low as $21.83 and last traded at $21.6770. 1,954,881 shares were traded during trading, a decline of 59% from the average daily volume of 4,771,647 shares. The stock had previously closed at $23.71.

Trending Headlines about Hormel Foods

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

• Positive Sentiment: Hormel reported third-quarter adjusted earnings of $0.37 per share, above analysts’ estimates of $0.35-$0.36 and up from $0.35 a year earlier. The company also raised and narrowed its fiscal 2026 adjusted EPS outlook to $1.45-$1.51, compared with a prior range of $1.45-$1.50. Hormel Foods Beats Q3 Earnings Estimates
• Positive Sentiment: Foodservice sales increased 2%, while operating cash flow rose 54% to $240.6 million. These results indicate some resilience in Hormel’s foodservice business and cash generation. Hormel Foods Reports Third Quarter Fiscal 2026 Results
• Neutral Sentiment: Hormel appointed a former Tyson Foods executive as its chief financial officer, a leadership change investors may monitor for its effect on cost controls and portfolio strategy. Hormel Foods Names Former Tyson Executive CFO
• Negative Sentiment: Third-quarter revenue fell 2.4% year over year to $2.96 billion, missing the roughly $3.03 billion consensus estimate. Retail sales declined 4% and International sales dropped 5%, reflecting weaker volumes and pressured consumer demand. Hormel Foods Cuts Annual Sales Forecast
• Negative Sentiment: Hormel reduced fiscal 2026 revenue guidance to $12.1-$12.2 billion from $12.2-$12.5 billion, while GAAP EPS guidance was lowered to $1.06-$1.12. Reported third-quarter profit was also affected by Brazil divestiture, investment impairment and litigation charges, contributing to a sharp decline in operating income. Hormel Foods Cuts Sales Outlook on Lower Quarterly Revenue

Analysts Set New Price Targets

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

Hormel Foods Stock Performance

The company has a quick ratio of 0.97, a current ratio of 1.94 and a debt-to-equity ratio of 0.30. The firm has a 50-day moving average price of $24.87 and a two-hundred day moving average price of $23.41. The firm has a market cap of $11.91 billion, a PE ratio of 25.59, a P/E/G ratio of 2.74 and a beta of 0.34.

Hormel Foods (NYSE:HRL - Get Free Report) last issued its quarterly earnings results on Wednesday, August 26th. The company reported $0.37 EPS for the quarter, topping the consensus estimate of $0.35 by $0.02. Hormel Foods had a return on equity of 9.74% and a net margin of 3.82%.The firm 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 firm's revenue for the quarter was down 2.4% on a year-over-year basis. Research analysts forecast that Hormel Foods Corporation will post 1.5 EPS for the current fiscal year.

Insider Transactions at Hormel Foods

In other news, Director Gary C. Bhojwani sold 20,200 shares of the company's stock in a transaction 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 completion of the sale, the director owned 32,002 shares of the company's stock, valued at $784,369.02. This represents a 38.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.58% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Hormel Foods

A number of institutional investors and hedge funds have recently bought and sold shares of HRL. Raiffeisen Bank International AG raised its holdings in Hormel Foods by 90.7% in the 2nd quarter. Raiffeisen Bank International AG now owns 986 shares of the company's stock valued at $26,000 after acquiring an additional 469 shares during the last quarter. MUFG Securities EMEA plc purchased a new stake in shares of Hormel Foods in the second quarter valued at approximately $26,000. Strive Financial Group LLC purchased a new stake in shares of Hormel Foods in the fourth quarter valued at approximately $27,000. Motiv8 Investments LLC acquired a new stake in shares of Hormel Foods in the fourth quarter valued at approximately $28,000. Finally, Fiduciary Financial Advisors acquired a new stake in shares of Hormel Foods in the second quarter valued at approximately $29,000. 40.99% of the stock is currently owned by institutional investors and hedge funds.

Hormel Foods Company Profile

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.

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