Smithfield Foods (NASDAQ:SFD) Sets New 1-Year Low - Here's What Happened

Key Points

• Smithfield Foods shares hit a new 52-week low, trading as low as $20.04 versus a prior close of $20.31.
• Analyst sentiment remains mixed but generally positive: five analysts rate the stock a Buy and one a Sell, with a “Moderate Buy” consensus and a $31 average price target.
• The company reported quarterly EPS of $0.62, slightly above estimates, while revenue fell 2.3% year over year to $3.70 billion; it also maintains a quarterly dividend of $0.3125, yielding about 6.2% annually.

Smithfield Foods, Inc. (NASDAQ:SFD - Get Free Report)'s share price hit a new 52-week low during trading on Tuesday . The stock traded as low as $20.04 and last traded at $20.0440, with a volume of 298322 shares changing hands. The stock had previously closed at $20.31.

Wall Street Analyst Weigh In

SFD has been the subject of several research analyst reports. Weiss Ratings downgraded Smithfield Foods from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday, September 3rd. Barclays reduced their price target on shares of Smithfield Foods from $31.00 to $29.00 and set an "overweight" rating on the stock in a research note on Wednesday, September 9th. Zacks Research lowered shares of Smithfield Foods from a "hold" rating to a "strong sell" rating in a report on Thursday, August 13th. Bank of America dropped their target price on shares of Smithfield Foods from $33.00 to $32.00 and set a "buy" rating on the stock in a research note on Thursday, July 2nd. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and set a $32.00 target price on shares of Smithfield Foods in a research report on Wednesday, August 12th. Five analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $31.00.

Smithfield Foods Stock Performance

The stock has a market cap of $7.88 billion, a PE ratio of 7.46 and a beta of -0.51. The company has a quick ratio of 1.34, a current ratio of 2.56 and a debt-to-equity ratio of 0.20. The firm has a 50 day moving average price of $23.84 and a 200 day moving average price of $25.25.

Smithfield Foods (NASDAQ:SFD - Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported $0.62 earnings per share for the quarter, topping analysts' consensus estimates of $0.60 by $0.02. Smithfield Foods had a net margin of 6.84% and a return on equity of 15.55%. The company had revenue of $3.70 billion during the quarter. During the same period last year, the company earned $0.55 earnings per share. The firm's revenue was down 2.3% compared to the same quarter last year. As a group, research analysts forecast that Smithfield Foods, Inc. will post 2.12 earnings per share for the current year.

Smithfield Foods Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Thursday, August 13th were given a $0.3125 dividend. This represents a $1.25 annualized dividend and a dividend yield of 6.2%. The ex-dividend date of this dividend was Thursday, August 13th. Smithfield Foods's dividend payout ratio is presently 46.64%.

Institutional Trading of Smithfield Foods

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Smithfield Foods during the 2nd quarter valued at about $29,000. Group One Trading LLC acquired a new stake in Smithfield Foods in the first quarter worth about $31,000. Altshuler Shaham Ltd boosted its holdings in Smithfield Foods by 36.8% in the first quarter. Altshuler Shaham Ltd now owns 1,524 shares of the company's stock worth $43,000 after acquiring an additional 410 shares in the last quarter. Ancora Advisors LLC purchased a new stake in shares of Smithfield Foods during the second quarter worth about $43,000. Finally, Persistent Asset Partners Ltd acquired a new position in shares of Smithfield Foods during the second quarter valued at about $58,000.

Smithfield Foods Company Profile

Smithfield Foods, Inc is a food company focused on pork production and processing. Its operations include raising hogs, processing fresh pork, and producing packaged meats and prepared foods for retail, foodservice and other customers.

The company markets products under brands including Smithfield, Eckrich, Farmland, Gwaltney, John Morrell and Healthy Ones. Its offerings include fresh pork cuts, bacon, ham, sausage, lunch meats, hot dogs and other prepared pork products.

Founded in 1936 and headquartered in Smithfield, Virginia, Smithfield serves customers in the United States and international markets through its production, processing and distribution network.

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