Hormel Foods (NYSE:HRL) Sets New 1-Year Low Following Weak Earnings

Hormel Foods Co. (NYSE:HRL)’s stock price hit a new 52-week low during mid-day trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $27.68 and last traded at $27.98, with a volume of 1047880 shares traded. The stock had previously closed at $28.73.

The company reported $0.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.43 by ($0.01). The firm had revenue of $3.14 billion during the quarter, compared to the consensus estimate of $3.14 billion. Hormel Foods had a return on equity of 10.95% and a net margin of 6.75%. The firm’s revenue was down 1.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.42 EPS.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on HRL shares. Citigroup dropped their price objective on shares of Hormel Foods from $36.00 to $35.00 and set a “buy” rating on the stock in a research note on Tuesday, November 19th. Stephens reaffirmed an “equal weight” rating and issued a $31.00 price target on shares of Hormel Foods in a research report on Tuesday, February 18th. Finally, Barclays raised Hormel Foods from a “hold” rating to a “strong-buy” rating in a report on Wednesday, January 22nd. Two equities research analysts have rated the stock with a sell rating, two have issued a hold rating, one has given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $31.17.

Insider Buying and Selling

In other news, VP Steven J. Lykken bought 4,904 shares of the company’s stock in a transaction on Friday, December 6th. The shares were purchased at an average price of $32.47 per share, with a total value of $159,232.88. Following the transaction, the vice president now directly owns 7,100 shares in the company, valued at $230,537. This represents a 223.32 % increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.72% of the stock is owned by corporate insiders.

Institutional Trading of Hormel Foods

Institutional investors and hedge funds have recently modified their holdings of the business. Crews Bank & Trust purchased a new position in Hormel Foods in the fourth quarter valued at about $25,000. Brooklyn Investment Group bought a new position in Hormel Foods in the 3rd quarter worth about $32,000. Prospera Private Wealth LLC purchased a new position in Hormel Foods during the 3rd quarter valued at about $39,000. Fairway Wealth LLC bought a new stake in shares of Hormel Foods during the fourth quarter valued at about $44,000. Finally, Capital Performance Advisors LLP purchased a new stake in shares of Hormel Foods in the third quarter worth about $47,000. 40.99% of the stock is owned by hedge funds and other institutional investors.

Hormel Foods Price Performance

The business’s 50-day moving average price is $30.07 and its 200 day moving average price is $31.07. The company has a market capitalization of $15.62 billion, a P/E ratio of 19.49, a price-to-earnings-growth ratio of 2.73 and a beta of 0.26. The company has a quick ratio of 1.19, a current ratio of 2.32 and a debt-to-equity ratio of 0.36.

Hormel Foods Company Profile

Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and other food products to retail, foodservice, deli, and commercial customers in the United States and internationally. It operates through three segments: Retail, Foodservice, and International segments. The company provides various perishable products that include fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons; and shelf-stable products comprising canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and others.