Smithfield Foods, Inc. (NASDAQ:SFD) Given Average Rating of "Buy" by Analysts

Key Points

• Smithfield Foods, Inc. (NASDAQ:SFD) has received an average rating of "Buy" from ten analysts, with a target price of $28.44.
• The company reported a quarterly EPS of $0.55, slightly missing expectations, but achieved revenues of $3.79 billion, exceeding estimates by over $0.17 billion.
• Smithfield Foods announced a $0.25 quarterly dividend, translating to an annualized yield of 4.3%, with a payout ratio currently at 44.05%.

Shares of Smithfield Foods, Inc. (NASDAQ:SFD - Get Free Report) have been assigned an average rating of "Buy" from the ten analysts that are covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a hold rating, seven have assigned a buy rating and two have issued a strong buy rating on the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $28.4375.

Several research analysts recently commented on the stock. UBS Group restated a "buy" rating and issued a $28.50 price target (up previously from $25.00) on shares of Smithfield Foods in a report on Wednesday, August 13th. Morgan Stanley lifted their price objective on shares of Smithfield Foods from $29.00 to $30.00 and gave the company an "overweight" rating in a research note on Wednesday, August 13th. Zacks Research upgraded shares of Smithfield Foods from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 15th. Finally, Barclays lifted their price objective on shares of Smithfield Foods from $28.00 to $30.00 and gave the company an "overweight" rating in a research note on Wednesday, August 13th.

Smithfield Foods Stock Performance

NASDAQ SFD opened at $23.40 on Thursday. Smithfield Foods has a one year low of $18.43 and a one year high of $26.07. The company's 50 day moving average price is $24.60 and its 200 day moving average price is $22.97. The firm has a market capitalization of $9.20 billion and a price-to-earnings ratio of 10.31.

Smithfield Foods (NASDAQ:SFD - Get Free Report) last posted its quarterly earnings results on Tuesday, August 12th. The company reported $0.55 EPS for the quarter, missing the consensus estimate of $0.56 by ($0.01). The company had revenue of $3.79 billion for the quarter, compared to analysts' expectations of $3.62 billion. The business's revenue for the quarter was up 11.0% on a year-over-year basis.

Smithfield Foods Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 28th. Stockholders of record on Thursday, August 14th were paid a dividend of $0.25 per share. The ex-dividend date was Thursday, August 14th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 4.3%. Smithfield Foods's dividend payout ratio (DPR) is currently 44.05%.

Insider Activity at Smithfield Foods

In other news, insider Keller D. Watts acquired 3,833 shares of the company's stock in a transaction dated Monday, September 8th. The shares were bought at an average price of $23.25 per share, for a total transaction of $89,117.25. Following the completion of the purchase, the insider directly owned 74,857 shares of the company's stock, valued at approximately $1,740,425.25. This trade represents a 5.40% increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Hank Shenghua He acquired 10,000 shares of the company's stock in a transaction dated Monday, September 8th. The shares were purchased at an average price of $23.25 per share, for a total transaction of $232,500.00. Following the purchase, the director directly owned 87,000 shares of the company's stock, valued at approximately $2,022,750. This trade represents a 12.99% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last three months, insiders have bought 1,831,753 shares of company stock valued at $42,588,257. 0.84% of the stock is currently owned by corporate insiders.

Institutional Trading of Smithfield Foods

A number of hedge funds and other institutional investors have recently made changes to their positions in SFD. PNC Financial Services Group Inc. acquired a new position in Smithfield Foods in the first quarter worth $27,000. Amalgamated Bank acquired a new position in Smithfield Foods in the first quarter worth $28,000. Raymond James Financial Inc. acquired a new position in Smithfield Foods in the second quarter worth $29,000. CWM LLC acquired a new position in Smithfield Foods in the second quarter worth $30,000. Finally, Pacer Advisors Inc. acquired a new position in Smithfield Foods in the first quarter worth $34,000.

About Smithfield Foods

Smithfield Foods, Inc produces and markets a variety of fresh meat and packaged meats products both domestically and internationally. The Company operates in four segments: Pork, Hog Production, International and Corporate, each of which consists of a number of subsidiaries, joint ventures and other investments.

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