Smithfield Foods (NASDAQ:SFD) Reaches New 12-Month Low - Should You Sell?

Key Points

• Smithfield Foods fell 6.3% to a new 52-week low, trading as low as $20.74 and last changing hands near $20.56, well below its 50-day and 200-day moving averages.
• Analyst sentiment remains mostly positive, with five Buy ratings and one Sell rating and a consensus price target of $31, although some firms recently downgraded the stock or lowered their targets.
• The company slightly exceeded quarterly EPS expectations with $0.62 versus $0.60, but revenue declined 2.3% year over year. Smithfield also pays a $0.3125 quarterly dividend, equivalent to a 6.1% annualized yield.

Smithfield Foods, Inc. (NASDAQ:SFD - Get Free Report) hit a new 52-week low during trading on Wednesday . The stock traded as low as $20.74 and last traded at $20.5590, with a volume of 34814 shares trading hands. The stock had previously closed at $22.01.

Wall Street Analysts Forecast Growth

SFD has been the topic of a number of research reports. Zacks Research lowered shares of Smithfield Foods from a "hold" rating to a "strong sell" rating in a research note on Thursday, August 13th. Weiss Ratings cut Smithfield Foods from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, September 3rd. The Goldman Sachs Group restated a "buy" rating and issued a $32.00 target price on shares of Smithfield Foods in a research note on Wednesday, August 12th. Bank of America dropped their target price on Smithfield Foods from $33.00 to $32.00 and set a "buy" rating on the stock in a report on Thursday, July 2nd. Finally, Barclays reduced their price target on Smithfield Foods from $31.00 to $29.00 and set an "overweight" rating for the company in a research report on Wednesday. Five research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $31.00.

Smithfield Foods Trading Down 6.3%

The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.34 and a current ratio of 2.56. The firm has a market capitalization of $8.12 billion, a price-to-earnings ratio of 7.74 and a beta of -0.51. The company has a 50 day moving average price of $24.16 and a two-hundred day moving average price of $25.39.

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. The firm had revenue of $3.70 billion for the quarter. Smithfield Foods had a net margin of 6.84% and a return on equity of 15.55%. Smithfield Foods's revenue was down 2.3% compared to the same quarter last year. During the same period in the prior year, the business posted $0.55 EPS. On average, research analysts forecast that Smithfield Foods, Inc. will post 2.45 EPS for the current year.

Smithfield Foods Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Thursday, August 13th were issued a dividend of $0.3125 per share. This represents a $1.25 annualized dividend and a yield of 6.1%. The ex-dividend date of this dividend was Thursday, August 13th. Smithfield Foods's dividend payout ratio (DPR) is presently 46.64%.

Institutional Trading of Smithfield Foods

Institutional investors and hedge funds have recently modified their holdings of the stock. Altshuler Shaham Ltd boosted its holdings in Smithfield Foods by 36.8% in the 1st quarter. Altshuler Shaham Ltd now owns 1,524 shares of the company's stock worth $43,000 after buying an additional 410 shares during the last quarter. Capital Financial Group Inc. Co. ADV raised its holdings in shares of Smithfield Foods by 5.8% during the first quarter. Capital Financial Group Inc. Co. ADV now owns 10,863 shares of the company's stock valued at $304,000 after acquiring an additional 600 shares during the last quarter. Parallel Advisors LLC raised its holdings in shares of Smithfield Foods by 46.2% during the fourth quarter. Parallel Advisors LLC now owns 2,328 shares of the company's stock valued at $52,000 after acquiring an additional 736 shares during the last quarter. Verition Fund Management LLC lifted its position in shares of Smithfield Foods by 1.1% in the third quarter. Verition Fund Management LLC now owns 68,812 shares of the company's stock valued at $1,616,000 after acquiring an additional 739 shares in the last quarter. Finally, Group One Trading LLC purchased a new position in shares of Smithfield Foods in the first quarter valued at approximately $31,000.

Smithfield Foods Company Profile

Smithfield Foods, Inc NASDAQ: SFD is one of the world's largest pork processors and hog producers. Founded in 1936 in Smithfield, Virginia, the company has grown from a regional ham producer into a fully integrated food company offering a broad range of fresh pork, value-added meats and prepared foods. Its product portfolio includes bacon, ham, sausage, ribs and deli meats marketed under well-known brands such as Smithfield®, Nathan's Famous® and Eckrich®.

Smithfield operates a network of hog production facilities, processing plants and distribution centers across the United States, Europe and Latin America.

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