Smithfield Foods, Inc. (NASDAQ:SFD) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst consensus is “Moderate Buy”: Five of six covering firms rate Smithfield Foods a buy, while one rates it a sell. The average 12-month price target is $31.50 versus a recent share price of $22.25.
• Quarterly earnings slightly exceeded expectations: Smithfield reported $0.62 in EPS, ahead of the $0.60 consensus, on $3.70 billion in revenue, though revenue declined 2.3% year over year.
• The company offers a 5.6% dividend yield: Smithfield declared a quarterly dividend of $0.3125 per share, or $1.25 annualized, with a payout ratio of 46.64%.

Smithfield Foods, Inc. (NASDAQ:SFD - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the six research firms that are presently covering the company, Marketbeat.com reports. One investment analyst has rated the stock with a sell rating and five have assigned a buy rating to the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $31.50.

Several equities research analysts have recently weighed in on SFD shares. Bank of America decreased their target price on shares of Smithfield Foods from $33.00 to $32.00 and set a "buy" rating for the company in a research note on Thursday, July 2nd. The Goldman Sachs Group reaffirmed a "buy" rating and set a $32.00 price objective on shares of Smithfield Foods in a research note on Wednesday, August 12th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Smithfield Foods in a research report on Friday, July 24th. Wall Street Zen downgraded Smithfield Foods from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Finally, Zacks Research lowered Smithfield Foods from a "hold" rating to a "strong sell" rating in a report on Thursday, August 13th.

Smithfield Foods Stock Down 0.1%

Shares of NASDAQ:SFD opened at $22.25 on Friday. The stock has a market cap of $8.76 billion, a P/E ratio of 8.30 and a beta of -0.44. The firm has a fifty day moving average price of $24.86 and a 200 day moving average price of $25.59. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.56 and a quick ratio of 1.34. Smithfield Foods has a 1-year low of $21.08 and a 1-year high of $29.81.

Smithfield Foods (NASDAQ:SFD - Get Free Report) last issued its quarterly earnings data on Tuesday, August 11th. The company reported $0.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.60 by $0.02. The company 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%. The company's revenue for the quarter was down 2.3% on a year-over-year basis. During the same period in the previous year, the business posted $0.55 earnings per share. Sell-side analysts predict that Smithfield Foods will post 2.45 EPS for the current year.

Smithfield Foods Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Thursday, August 13th will be issued a dividend of $0.3125 per share. The ex-dividend date of this dividend is Thursday, August 13th. This represents a $1.25 annualized dividend and a dividend yield of 5.6%. Smithfield Foods's dividend payout ratio (DPR) is currently 46.64%.

Hedge Funds Weigh In On Smithfield Foods

Institutional investors have recently bought and sold shares of the company. Royal Bank of Canada purchased a new position in Smithfield Foods during the 1st quarter worth $1,456,000. Goldman Sachs Group Inc. purchased a new stake in shares of Smithfield Foods in the first quarter valued at about $3,195,000. Cetera Investment Advisers acquired a new position in shares of Smithfield Foods during the second quarter worth about $485,000. JPMorgan Chase & Co. increased its stake in shares of Smithfield Foods by 7,016.0% during the second quarter. JPMorgan Chase & Co. now owns 36,363 shares of the company's stock worth $856,000 after acquiring an additional 35,852 shares during the period. Finally, Arrowstreet Capital Limited Partnership raised its holdings in Smithfield Foods by 267.1% during the second quarter. Arrowstreet Capital Limited Partnership now owns 53,025 shares of the company's stock worth $1,248,000 after purchasing an additional 38,580 shares in the last quarter.

About Smithfield Foods

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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