Smithfield Foods, Inc. (NASDAQ:SFD) Sees Large Decrease in Short Interest

Key Points

• Smithfield Foods saw a 15.2% drop in short interest in April to 3,666,333 shares (about 0.9% of shares outstanding), leaving a short-interest ratio of 1.7 days.
• The company beat quarterly expectations, reporting EPS of $0.64 versus $0.58 expected and revenue of $3.80 billion versus $3.74 billion, with revenue up 0.8% year-over-year.
• Smithfield declared a quarterly dividend of $0.3125 (annualized $1.25), implying a 4.8% yield; the ex-dividend date is May 14 and the payment date is May 28.

Smithfield Foods, Inc. (NASDAQ:SFD - Get Free Report) was the recipient of a large drop in short interest in the month of April. As of April 15th, there was short interest totaling 3,666,333 shares, a drop of 15.2% from the March 31st total of 4,324,250 shares. Based on an average daily volume of 2,146,762 shares, the short-interest ratio is presently 1.7 days. Approximately 0.9% of the company's shares are sold short.

Smithfield Foods Stock Performance

Shares of Smithfield Foods stock traded up $0.03 during trading on Friday, hitting $26.31. The company's stock had a trading volume of 907,099 shares, compared to its average volume of 1,358,582. The company has a fifty day simple moving average of $26.31 and a two-hundred day simple moving average of $23.87. The company has a market capitalization of $10.35 billion, a PE ratio of 10.28 and a beta of -0.33. Smithfield Foods has a 52 week low of $21.08 and a 52 week high of $29.81.

Smithfield Foods (NASDAQ:SFD - Get Free Report) last issued its quarterly earnings results 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. The business had revenue of $3.80 billion during the quarter, compared to the consensus estimate of $3.74 billion. The firm's revenue was up .8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.58 earnings per share. As a group, analysts predict that Smithfield Foods will post 2.72 EPS for the current year.

Smithfield Foods Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 28th. Investors of record on Thursday, May 14th will be paid a $0.3125 dividend. This represents a $1.25 annualized dividend and a dividend yield of 4.8%. The ex-dividend date is Thursday, May 14th. Smithfield Foods's dividend payout ratio (DPR) is presently 48.83%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Strs Ohio increased its stake in shares of Smithfield Foods by 76.5% in the 3rd quarter. Strs Ohio now owns 1,080 shares of the company's stock worth $25,000 after acquiring an additional 468 shares in the last quarter. Altshuler Shaham Ltd purchased a new position in Smithfield Foods in the fourth quarter worth about $25,000. Raymond James Financial Inc. purchased a new position in Smithfield Foods in the second quarter worth about $29,000. Oakworth Capital Inc. purchased a new position in Smithfield Foods in the fourth quarter worth about $31,000. Finally, Parallel Advisors LLC purchased a new position in Smithfield Foods in the third quarter worth about $37,000.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on SFD shares. Zacks Research raised shares of Smithfield Foods from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, March 25th. Weiss Ratings raised shares of Smithfield Foods from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday. Wall Street Zen raised shares of Smithfield Foods from a "hold" rating to a "buy" rating in a research report on Sunday, March 29th. Morgan Stanley raised their target price on shares of Smithfield Foods from $29.00 to $31.00 and gave the stock an "overweight" rating in a research report on Wednesday, March 25th. Finally, Barclays raised their target price on shares of Smithfield Foods from $30.00 to $32.00 and gave the stock an "overweight" rating in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating and five have assigned a Buy rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Buy" and an average target price of $29.88.

Smithfield Foods Company Profile

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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