Smithfield Foods, Inc. (NASDAQ:SFD) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analyst sentiment is positive: Six analysts give Smithfield Foods an average “Moderate Buy” rating, with five buys and one hold. The average 12-month price target is $30.875, above the reported opening price of $27.10.
• Latest quarterly results exceeded expectations: Smithfield reported adjusted earnings of $0.64 per share versus the $0.58 consensus estimate, while revenue reached $3.80 billion, up 0.8% year over year.
• Dividend yield stands at 4.6%: The company paid a quarterly dividend of $0.3125 per share, equivalent to $1.25 annually, with a payout ratio of 48.83%.

Shares of Smithfield Foods, Inc. (NASDAQ:SFD - Get Free Report) have received an average rating of "Moderate Buy" from the six ratings firms that are presently covering the stock, Marketbeat reports. One investment analyst has rated the stock with a hold recommendation and five have given a buy recommendation to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $30.8750.

Several equities research analysts have commented on the stock. Zacks Research lowered shares of Smithfield Foods from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 25th. Weiss Ratings upgraded shares of Smithfield Foods from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, April 29th. Barclays raised their price objective on shares of Smithfield Foods from $30.00 to $32.00 and gave the company an "overweight" rating in a research note on Wednesday, April 29th. Bank of America lowered 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 report on Thursday, July 2nd. Finally, Wall Street Zen cut shares of Smithfield Foods from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd.

Smithfield Foods Stock Up 2.0%

SFD opened at $27.10 on Wednesday. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.41 and a quick ratio of 1.29. Smithfield Foods has a 12 month low of $21.08 and a 12 month high of $29.81. The stock has a market capitalization of $10.66 billion, a P/E ratio of 10.59 and a beta of -0.41. The business has a 50 day simple moving average of $25.63 and a 200-day simple moving average of $25.49.

Smithfield Foods (NASDAQ:SFD - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The company reported $0.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.58 by $0.06. Smithfield Foods had a return on equity of 15.54% and a net margin of 6.48%.The firm had revenue of $3.80 billion during the quarter, compared to analysts' expectations of $3.74 billion. During the same quarter in the prior year, the business posted $0.58 earnings per share. Smithfield Foods's revenue was up .8% compared to the same quarter last year. On average, equities analysts anticipate that Smithfield Foods will post 2.7 earnings per share for the current fiscal year.

Smithfield Foods Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Thursday, May 14th were issued a $0.3125 dividend. The ex-dividend date was Thursday, May 14th. This represents a $1.25 dividend on an annualized basis and a dividend yield of 4.6%. Smithfield Foods's dividend payout ratio is currently 48.83%.

Institutional Trading of Smithfield Foods

A number of institutional investors have recently bought and sold shares of the company. Altshuler Shaham Ltd purchased a new position in shares of Smithfield Foods in the fourth quarter valued at $25,000. Raymond James Financial Inc. purchased a new stake in shares of Smithfield Foods in the 2nd quarter worth about $29,000. Oakworth Capital Inc. acquired a new stake in Smithfield Foods in the 4th quarter valued at about $31,000. Group One Trading LLC acquired a new stake in Smithfield Foods in the 1st quarter valued at about $31,000. Finally, Parallel Advisors LLC purchased a new position in Smithfield Foods during the 3rd quarter valued at about $37,000.

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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