Smithfield Foods (NASDAQ:SFD) Shares Up 6.3% After Strong Earnings

Smithfield Foods, Inc (NASDAQ:SFD - Get Free Report)'s stock price traded up 6.3% on Tuesday following a stronger than expected earnings report. The company traded as high as $21.21 and last traded at $21.17. 473,330 shares were traded during mid-day trading, a decline of 42% from the average session volume of 812,534 shares. The stock had previously closed at $19.91.

The company reported $0.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.47 by $0.11. The firm had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.56 billion. The company's revenue for the quarter was up 9.5% compared to the same quarter last year.

Smithfield Foods Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, May 29th. Shareholders of record on Thursday, May 15th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 4.35%. The ex-dividend date of this dividend is Thursday, May 15th. Smithfield Foods's dividend payout ratio (DPR) is currently 44.05%.

Analysts Set New Price Targets

A number of research firms have recently issued reports on SFD. Hsbc Global Res upgraded shares of Smithfield Foods to a "strong-buy" rating in a research report on Tuesday, March 18th. The Goldman Sachs Group initiated coverage on Smithfield Foods in a research note on Monday, February 24th. They issued a "buy" rating and a $32.00 target price on the stock. Barclays started coverage on Smithfield Foods in a research report on Monday, February 24th. They issued an "overweight" rating and a $28.00 price objective on the stock. Citigroup began coverage on shares of Smithfield Foods in a research note on Monday, February 24th. They issued a "buy" rating and a $27.00 target price for the company. Finally, Bank of America began coverage on shares of Smithfield Foods in a research note on Monday, February 24th. They set a "buy" rating and a $28.00 price objective on the stock. One investment analyst has rated the stock with a hold rating, seven have given a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average target price of $27.86.

Insider Buying and Selling at Smithfield Foods

In other news, major shareholder Group Ltd/Adr Wh sold 2,506,936 shares of the business's stock in a transaction dated Thursday, February 20th. The stock was sold at an average price of $20.00, for a total transaction of $50,138,720.00. Following the completion of the sale, the insider now owns 364,518,817 shares in the company, valued at approximately $7,290,376,340. The trade was a 0.68 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 1.79% of the stock is owned by company insiders.

Institutional Investors Weigh In On Smithfield Foods

Several institutional investors have recently bought and sold shares of the business. New York State Common Retirement Fund acquired a new position in shares of Smithfield Foods during the 1st quarter valued at $110,000. Nisa Investment Advisors LLC acquired a new position in shares of Smithfield Foods during the first quarter worth about $255,000. Bank of New York Mellon Corp purchased a new stake in shares of Smithfield Foods in the first quarter worth about $591,000. Teacher Retirement System of Texas acquired a new stake in shares of Smithfield Foods in the first quarter valued at about $8,156,000. Finally, American Capital Advisory LLC purchased a new stake in shares of Smithfield Foods during the 1st quarter valued at about $102,000.

Smithfield Foods Stock Up 4.5 %

The stock has a 50-day moving average of $20.06. The company has a market capitalization of $9.03 billion and a PE ratio of 10.12.

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.