Smithfield Foods (NASDAQ:SFD) Shares Gap Down - What's Next?

Key Points

• Smithfield Foods' stock price gapped down from $25.51 to $24.55 at market open, and last traded at $24.10, representing a 4.3% decline.
• Despite this drop, several Wall Street analysts have upgraded their ratings and target prices, with a consensus target price now at $28.44 and a majority of analysts rating the stock as a "Buy."
• The company reported quarterly earnings of $0.55 per share, slightly missing the consensus estimate, but its revenue of $3.79 billion exceeded expectations and showed an 11% year-over-year increase.

Smithfield Foods, Inc. (NASDAQ:SFD - Get Free Report) shares gapped down before the market opened on Wednesday . The stock had previously closed at $25.51, but opened at $24.55. Smithfield Foods shares last traded at $24.10, with a volume of 324,702 shares changing hands.

Wall Street Analysts Forecast Growth

SFD has been the subject of several research reports. 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 research report on Wednesday, August 13th. Barclays increased their price target on shares of Smithfield Foods from $28.00 to $30.00 and gave the company an "overweight" rating in a research report on Wednesday, August 13th. Zacks Research upgraded shares of Smithfield Foods from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 15th. Finally, UBS Group restated a "buy" rating and set a $28.50 price target (up previously from $25.00) on shares of Smithfield Foods in a research report on Wednesday, August 13th. Two analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average price target of $28.44.

Smithfield Foods Stock Down 1.3%

The stock has a market cap of $9.23 billion and a P/E ratio of 10.35. The business's 50-day simple moving average is $24.63 and its two-hundred day simple moving average is $22.54.

Smithfield Foods (NASDAQ:SFD - Get Free Report) last issued 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 business had revenue of $3.79 billion for the quarter, compared to analysts' expectations of $3.62 billion. Smithfield Foods's revenue for the quarter was up 11.0% on a year-over-year basis.

Smithfield Foods Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 28th. Shareholders of record on Thursday, August 14th were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 4.3%. The ex-dividend date was Thursday, August 14th. Smithfield Foods's dividend payout ratio (DPR) is currently 44.05%.

Institutional Investors Weigh In On Smithfield Foods

A number of institutional investors and hedge funds have recently modified their holdings of SFD. PNC Financial Services Group Inc. purchased a new stake in shares of Smithfield Foods in the first quarter worth about $27,000. Amalgamated Bank purchased a new stake in shares of Smithfield Foods in the first quarter worth about $28,000. Raymond James Financial Inc. purchased a new stake in shares of Smithfield Foods in the second quarter worth about $29,000. CWM LLC purchased a new stake in shares of Smithfield Foods in the second quarter worth about $30,000. Finally, Pacer Advisors Inc. purchased a new stake in shares of Smithfield Foods in the first quarter worth about $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.