Smithfield Foods (NASDAQ:SFD) Downgraded to "Hold" Rating by Zacks Research

Key Points

• Smithfield Foods has been downgraded from a "strong-buy" to a "hold" rating by Zacks Research, reflecting a shift in analyst sentiment regarding the company's stock.
• Bank of America reduced its price target for Smithfield Foods from $30.00 to $28.00, while Barclays and Morgan Stanley have increased their targets to $30.00, indicating mixed outlooks among analysts.
• Insider buying activity has occurred, with significant purchases made by Directors Long Wan and Hank Shenghua He, suggesting confidence in the company's future prospects despite recent downgrades.

Smithfield Foods (NASDAQ:SFD - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Wednesday,Zacks.com reports.

SFD has been the subject of several other research reports. Bank of America lowered their price target on shares of Smithfield Foods from $30.00 to $28.00 and set a "buy" rating for the company in a research report on Wednesday. Weiss Ratings restated a "buy (b-)" rating on shares of Smithfield Foods in a research note on Wednesday. Barclays upped their price objective on shares of Smithfield Foods from $28.00 to $30.00 and gave the company an "overweight" rating in a report on Wednesday, August 13th. Morgan Stanley upped their price objective 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. Finally, UBS Group reissued a "buy" rating and set a $28.50 price target (up from $25.00) on shares of Smithfield Foods in a report on Wednesday, August 13th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, Smithfield Foods presently has a consensus rating of "Moderate Buy" and an average target price of $28.44.

Smithfield Foods Stock Performance

Shares of NASDAQ SFD opened at $21.79 on Wednesday. The company has a market cap of $8.57 billion and a P/E ratio of 9.60. The firm's fifty day moving average is $24.43 and its two-hundred day moving average is $23.09. Smithfield Foods has a 52-week low of $18.43 and a 52-week high of $26.07.

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

Insider Buying and Selling

In related news, Director Long Wan acquired 1,800,000 shares of the business's stock in a transaction on Monday, September 8th. The shares were bought at an average price of $23.25 per share, with a total value of $41,850,000.00. Following the completion of the acquisition, the director owned 5,060,000 shares in the company, valued at $117,645,000. This trade represents a 55.21% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Hank Shenghua He bought 10,000 shares of the business's stock in a transaction dated Monday, September 8th. The stock was acquired at an average cost of $23.25 per share, for a total transaction of $232,500.00. Following the completion of the acquisition, the director directly owned 87,000 shares in the company, 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. Insiders have bought 1,831,753 shares of company stock valued at $42,588,257 over the last ninety days. 0.84% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Raymond James Financial Inc. acquired a new position in Smithfield Foods in the 2nd quarter valued at about $29,000. CWM LLC purchased a new position in Smithfield Foods in the 2nd quarter worth approximately $30,000. PNC Financial Services Group Inc. purchased a new position in Smithfield Foods in the 1st quarter worth approximately $27,000. Amalgamated Bank purchased a new position in Smithfield Foods in the 1st quarter worth approximately $28,000. Finally, Pacer Advisors Inc. acquired a new stake in shares of Smithfield Foods during the first quarter worth approximately $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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