Smithfield Foods (NASDAQ:SFD) Stock Price Passes Above 200 Day Moving Average - Should You Sell?

Key Points

• Smithfield Foods shares rose above their 200-day moving average, trading as high as $26.81 before last trading at $26.44. The stock’s 200-day average was $25.36, and it was down just 0.3% on the day.
• Analyst sentiment remains generally positive, with five Buy ratings and one Hold. The consensus rating is Moderate Buy, and the average price target is $30.88.
• The company reported strong recent results, beating quarterly EPS and revenue estimates, and it also pays a 4.7% dividend yield based on an annualized dividend of $1.25. Smithfield Foods has a market cap of about $10.4 billion and relatively low debt.

Smithfield Foods, Inc. (NASDAQ:SFD - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $25.36 and traded as high as $26.81. Smithfield Foods shares last traded at $26.44, with a volume of 1,252,101 shares changing hands.

Wall Street Analyst Weigh In

Several brokerages have weighed in on SFD. Barclays increased their target price on Smithfield Foods from $30.00 to $32.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 29th. Bank of America cut their price objective 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. Zacks Research lowered shares of Smithfield Foods from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 25th. Wall Street Zen lowered shares of Smithfield Foods from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Finally, Morgan Stanley lifted their price target on Smithfield Foods from $29.00 to $31.00 and gave the company an "overweight" rating in a report on Wednesday, March 25th. Five analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, Smithfield Foods has a consensus rating of "Moderate Buy" and an average target price of $30.88.

Smithfield Foods Trading Down 0.3%

The firm has a market capitalization of $10.40 billion, a P/E ratio of 10.33 and a beta of -0.41. The business's 50 day moving average is $25.55 and its two-hundred day moving average is $25.36. The company has a quick ratio of 1.29, a current ratio of 2.41 and a debt-to-equity ratio of 0.20.

Smithfield Foods (NASDAQ:SFD - Get Free Report) last announced its earnings results on Tuesday, April 28th. The company reported $0.64 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.58 by $0.06. The firm had revenue of $3.80 billion during the quarter, compared to analyst estimates of $3.74 billion. Smithfield Foods had a net margin of 6.48% and a return on equity of 15.54%. Smithfield Foods's revenue was up .8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.58 EPS. Analysts expect that Smithfield Foods, Inc. will post 2.7 EPS for the current year.

Smithfield Foods Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, May 28th. Stockholders 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 annualized dividend and a dividend yield of 4.7%. Smithfield Foods's dividend payout ratio (DPR) is 48.83%.

Institutional Investors Weigh In On Smithfield Foods

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Group One Trading LLC bought a new position in Smithfield Foods during the 1st quarter valued at $31,000. Altshuler Shaham Ltd acquired a new stake in shares of Smithfield Foods in the fourth quarter valued at $25,000. Raymond James Financial Inc. bought a new position in Smithfield Foods during the second quarter valued at about $29,000. Oakworth Capital Inc. bought a new position in Smithfield Foods during the fourth quarter valued at about $31,000. Finally, Parallel Advisors LLC acquired a new position in Smithfield Foods during the third quarter worth 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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