Smithfield Foods (NASDAQ:SFD) Hits New 1-Year Low - Here's Why

Key Points

• Smithfield Foods shares fell to a new 52-week low of $18.09, below the 50-day and 200-day moving averages of $20.15 and $24.00, respectively.
• Analyst sentiment is mixed but leans neutral: the stock has a consensus “Hold” rating and a $26.00 target price, with three Buys, three Holds and one Sell.
• The company reported quarterly EPS of $0.62, slightly above expectations, though revenue declined 2.3% year over year. Smithfield also offers a quarterly dividend of $0.3125 per share, equivalent to a 6.8% annualized yield.

Smithfield Foods, Inc. (NASDAQ:SFD - Get Free Report) reached a new 52-week low during trading on Monday. The company traded as low as $18.09 and last traded at $18.2540, with a volume of 1,732,898 shares trading hands. The stock had previously closed at $18.64.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the stock. Weiss Ratings lowered shares of Smithfield Foods from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, September 29th. Stephens started coverage on shares of Smithfield Foods in a research note on Wednesday, September 30th. They set an "equal weight" rating and a $22.00 price target on the stock. Zacks Research lowered shares of Smithfield Foods from a "hold" rating to a "strong sell" rating in a research note on Thursday, August 13th. Deutsche Bank Aktiengesellschaft set a $21.00 target price on Smithfield Foods in a research note on Friday, October 9th. Finally, Barclays lowered their price target on shares of Smithfield Foods from $31.00 to $29.00 and set an "overweight" rating on the stock in a report on Wednesday, September 9th. Three equities research 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. Based on data from MarketBeat.com, Smithfield Foods presently has a consensus rating of "Hold" and a consensus target price of $26.00.

Smithfield Foods Stock Performance

The company has a current ratio of 2.56, a quick ratio of 1.34 and a debt-to-equity ratio of 0.20. The company's 50 day moving average is $20.15 and its 200-day moving average is $24.00. The company has a market capitalization of $7.21 billion, a P/E ratio of 6.83 and a beta of -0.41.

Smithfield Foods (NASDAQ:SFD - Get Free Report) last released its quarterly earnings results on Tuesday, August 11th. The company reported $0.62 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.60 by $0.02. Smithfield Foods had a return on equity of 15.55% and a net margin of 6.84%. The business had revenue of $3.70 billion during the quarter. During the same quarter in the prior year, the firm earned $0.55 earnings per share. The company's revenue for the quarter was down 2.3% compared to the same quarter last year. Equities analysts anticipate that Smithfield Foods, Inc. will post 2.03 EPS for the current fiscal year.

Smithfield Foods Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Investors of record on Thursday, August 13th were paid a dividend of $0.3125 per share. The ex-dividend date of this dividend was Thursday, August 13th. This represents a $1.25 dividend on an annualized basis and a yield of 6.8%. Smithfield Foods's dividend payout ratio is presently 46.64%.

Hedge Funds Weigh In On Smithfield Foods

Large investors have recently made changes to their positions in the company. Group One Trading LLC bought a new stake in shares of Smithfield Foods during the first quarter worth $31,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Smithfield Foods during the second quarter valued at approximately $29,000. Altshuler Shaham Ltd raised its position in Smithfield Foods by 36.8% during the 1st quarter. Altshuler Shaham Ltd now owns 1,524 shares of the company's stock valued at $43,000 after purchasing an additional 410 shares in the last quarter. Ancora Advisors LLC purchased a new stake in shares of Smithfield Foods in the 2nd quarter worth $43,000. Finally, Persistent Asset Partners Ltd bought a new position in shares of Smithfield Foods during the 2nd quarter worth $58,000.

Smithfield Foods Company Profile

Smithfield Foods, Inc is a food company engaged in pork production and the manufacture and sale of packaged meats. Its operations include hog production, fresh pork processing, and the preparation of bacon, ham, sausage, hot dogs, deli meats and other ready-to-cook or ready-to-eat products.

The company sells products under brands that include Smithfield, Eckrich, Nathan's Famous and Farmland, as well as through private-label and foodservice channels. Its products are distributed through grocery retailers, restaurants, foodservice operators and other commercial customers in the United States and international markets.

Founded in Smithfield, Virginia, in 1936, Smithfield Foods expanded through acquisitions and became one of the world's largest pork processors and hog producers.

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