Smithfield Foods (NASDAQ:SFD) Shares Gap Down - Should You Sell?

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)'s share price 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.

Wall Street Analysts Forecast Growth

SFD has been the topic of several research analyst reports. Morgan Stanley upped their price objective on shares of Smithfield Foods from $29.00 to $30.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 13th. UBS Group reiterated a "buy" rating and set a $28.50 target price (up from $25.00) on shares of Smithfield Foods in a research report on Wednesday, August 13th. Barclays upped their target price on shares of Smithfield Foods from $28.00 to $30.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 13th. Finally, Zacks Research upgraded shares of Smithfield Foods from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 15th. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $28.44.

Smithfield Foods Stock Down 4.3%

The company's fifty day simple moving average is $24.57 and its two-hundred day simple moving average is $22.47. The company has a market capitalization of $9.60 billion and a price-to-earnings ratio of 10.75.

Smithfield Foods (NASDAQ:SFD - Get Free Report) last issued its quarterly earnings data on Tuesday, August 12th. The company reported $0.55 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.56 by ($0.01). The firm had revenue of $3.79 billion for the quarter, compared to the consensus estimate of $3.62 billion. The firm's quarterly revenue was up 11.0% on a year-over-year basis.

Smithfield Foods Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, August 28th. Shareholders of record on Thursday, August 14th were paid a $0.25 dividend. The ex-dividend date was Thursday, August 14th. This represents a $1.00 dividend on an annualized basis and a yield of 4.1%. Smithfield Foods's dividend payout ratio (DPR) is currently 44.05%.

Institutional Trading of Smithfield Foods

A number of hedge funds have recently modified their holdings of the stock. Oppenheimer & Co. Inc. acquired a new stake in Smithfield Foods in the 1st quarter worth about $213,000. Teacher Retirement System of Texas acquired a new stake in Smithfield Foods in the 1st quarter worth about $8,156,000. Amalgamated Bank acquired a new stake in Smithfield Foods in the 1st quarter worth about $28,000. Nisa Investment Advisors LLC acquired a new stake in Smithfield Foods in the 1st quarter worth about $255,000. Finally, DAVENPORT & Co LLC acquired a new stake in Smithfield Foods in the 1st quarter worth about $2,587,000.

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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