Hormel Foods (NYSE:HRL) Hits New 12-Month Low – Should You Sell?

Hormel Foods Co. (NYSE:HRL) shares hit a new 52-week low on Wednesday . The stock traded as low as $28.03 and last traded at $28.27, with a volume of 4050029 shares trading hands. The stock had previously closed at $28.46.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on HRL. Citigroup cut their price target on shares of Hormel Foods from $36.00 to $35.00 and set a “buy” rating on the stock in a report on Tuesday, November 19th. Stephens restated an “equal weight” rating and issued a $31.00 price target on shares of Hormel Foods in a report on Tuesday. Finally, Barclays upgraded shares of Hormel Foods from a “hold” rating to a “strong-buy” rating in a report on Wednesday, January 22nd. Two investment analysts have rated the stock with a sell rating, two have given a hold rating, one has issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $31.17.

Hormel Foods Trading Down 0.7 %

The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.19 and a current ratio of 2.32. The company’s fifty day simple moving average is $30.55 and its 200-day simple moving average is $31.20. The company has a market capitalization of $15.52 billion, a P/E ratio of 19.36, a PEG ratio of 2.69 and a beta of 0.26.

Hormel Foods (NYSE:HRL) last released its quarterly earnings results on Wednesday, December 4th. The company reported $0.42 EPS for the quarter, missing the consensus estimate of $0.43 by ($0.01). The firm had revenue of $3.14 billion for the quarter, compared to analysts’ expectations of $3.14 billion. Hormel Foods had a net margin of 6.75% and a return on equity of 10.95%. The business’s quarterly revenue was down 1.9% compared to the same quarter last year. During the same period in the previous year, the company posted $0.42 earnings per share. Research analysts predict that Hormel Foods Co. will post 1.65 earnings per share for the current year.

Hormel Foods Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, February 18th. Shareholders of record on Monday, January 13th were given a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 4.10%. This is a positive change from Hormel Foods’s previous quarterly dividend of $0.28. The ex-dividend date of this dividend was Monday, January 13th. Hormel Foods’s dividend payout ratio is presently 79.45%.

Insider Buying and Selling at Hormel Foods

In related news, VP Steven J. Lykken acquired 4,904 shares of the firm’s stock in a transaction that occurred on Friday, December 6th. The stock was purchased at an average cost 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 of the company’s stock, valued at $230,537. This trade represents a 223.32 % increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.72% of the company’s stock.

Hedge Funds Weigh In On Hormel Foods

Hedge funds and other institutional investors have recently modified their holdings of the stock. Crews Bank & Trust purchased a new position in shares of Hormel Foods in the 4th quarter valued at approximately $25,000. Brooklyn Investment Group purchased a new position in shares of Hormel Foods in the 3rd quarter valued at approximately $32,000. Prospera Private Wealth LLC purchased a new position in shares of Hormel Foods in the 3rd quarter valued at approximately $39,000. Fairway Wealth LLC purchased a new position in Hormel Foods during the 4th quarter worth approximately $44,000. Finally, Capital Performance Advisors LLP purchased a new position in Hormel Foods during the 3rd quarter worth approximately $47,000. 40.99% of the stock is owned by hedge funds and other institutional investors.

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.