Smithfield Foods, Inc. (NASDAQ:SFD) Receives Consensus Rating of "Buy" from Brokerages

Key Points

• Analysts have given Smithfield Foods, Inc. (NASDAQ:SFD) an average recommendation of "Buy", with ten analysts covering the stock—seven issuing buy ratings and two a strong buy rating.
• The company reported $0.55 earnings per share for the last quarter, which was slightly below the consensus estimate of $0.56, but its revenue of $3.79 billion exceeded expectations.
• Smithfield Foods recently declared a quarterly dividend of $0.25 per share, representing a 4.2% dividend yield and a payout ratio of 44.05%.

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

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

Smithfield Foods Price Performance

Shares of SFD stock traded up $0.36 during trading hours on Friday, hitting $24.52. The stock had a trading volume of 3,076,644 shares, compared to its average volume of 1,726,870. Smithfield Foods has a one year low of $18.43 and a one year high of $26.07. The stock's 50-day moving average price is $24.61 and its two-hundred day moving average price is $22.59. The stock has a market capitalization of $9.64 billion and a price-to-earnings ratio of 10.80.

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

Smithfield Foods Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 28th. Shareholders of record on Thursday, August 14th were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 4.1%. The ex-dividend date of this dividend was Thursday, August 14th. Smithfield Foods's payout ratio is presently 44.05%.

Insiders Place Their Bets

In other news, insider Keller D. Watts bought 3,833 shares of the stock in a transaction dated Monday, September 8th. The stock was purchased at an average price of $23.25 per share, for a total transaction of $89,117.25. Following the acquisition, the insider owned 74,857 shares of the company's stock, valued at $1,740,425.25. The trade was a 5.40% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Donovan Owens purchased 12,000 shares of the business's stock in a transaction that occurred on Monday, September 8th. The shares were purchased at an average price of $23.25 per share, for a total transaction of $279,000.00. Following the completion of the acquisition, the insider directly owned 77,000 shares in the company, valued at $1,790,250. The trade was a 18.46% increase in their position. The disclosure for this purchase can be found here. In the last quarter, insiders have bought 1,831,753 shares of company stock valued at $42,588,257. 0.84% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Smithfield Foods

Hedge funds and other institutional investors have recently modified their holdings of the business. Zimmer Partners LP purchased a new position in Smithfield Foods during the 1st quarter valued at $56,087,000. Millennium Management LLC bought a new stake in shares of Smithfield Foods in the 1st quarter valued at about $46,687,000. Park West Asset Management LLC purchased a new stake in shares of Smithfield Foods in the 1st quarter worth approximately $35,621,000. Norges Bank bought a new position in shares of Smithfield Foods during the second quarter valued at approximately $31,295,000. Finally, Alberta Investment Management Corp purchased a new position in Smithfield Foods during the first quarter valued at approximately $25,488,000.

Smithfield Foods Company Profile

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.