ValuEngine Lowers Hormel Foods (HRL) to Hold

ValuEngine downgraded shares of Hormel Foods (NYSE:HRL) from a buy rating to a hold rating in a report issued on Saturday, ValuEngine reports.

Other research analysts have also issued reports about the company. Zacks Investment Research upgraded Hormel Foods from a hold rating to a buy rating and set a $47.00 price target on the stock in a research report on Thursday, February 28th. Stephens started coverage on Hormel Foods in a research report on Monday, March 4th. They issued an equal weight rating on the stock. Credit Suisse Group restated a hold rating and issued a $39.00 price target on shares of Hormel Foods in a research report on Thursday, February 21st. Finally, Jefferies Financial Group restated a hold rating and issued a $44.00 price target on shares of Hormel Foods in a research report on Thursday, February 21st. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and one has issued a buy rating to the company. The company has an average rating of Hold and an average price target of $41.33.

NYSE:HRL opened at $40.78 on Friday. Hormel Foods has a 12-month low of $34.12 and a 12-month high of $46.26. The company has a debt-to-equity ratio of 0.04, a quick ratio of 0.77 and a current ratio of 1.46. The firm has a market capitalization of $22.04 billion, a PE ratio of 21.58, a P/E/G ratio of 2.71 and a beta of 0.19.

Hormel Foods (NYSE:HRL) last posted its quarterly earnings results on Thursday, February 21st. The company reported $0.44 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.44. Hormel Foods had a return on equity of 17.58% and a net margin of 9.93%. The business had revenue of $2.36 billion for the quarter, compared to analyst estimates of $2.40 billion. During the same period last year, the company earned $0.56 EPS. The firm’s revenue was up 1.2% on a year-over-year basis. Analysts forecast that Hormel Foods will post 1.82 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 15th. Investors of record on Monday, April 15th will be paid a dividend of $0.21 per share. This represents a $0.84 annualized dividend and a yield of 2.06%. The ex-dividend date of this dividend is Friday, April 12th. Hormel Foods’s payout ratio is presently 44.44%.

In related news, VP Lori J. Marco sold 13,000 shares of the firm’s stock in a transaction on Thursday, April 11th. The stock was sold at an average price of $41.56, for a total transaction of $540,280.00. Following the sale, the vice president now owns 48,304 shares of the company’s stock, valued at approximately $2,007,514.24. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Elsa A. Murano sold 4,500 shares of the firm’s stock in a transaction on Tuesday, April 9th. The stock was sold at an average price of $42.13, for a total value of $189,585.00. Following the sale, the director now directly owns 101,067 shares in the company, valued at approximately $4,257,952.71. The disclosure for this sale can be found here. Insiders have sold a total of 274,705 shares of company stock worth $12,116,336 in the last ninety days. 1.11% of the stock is currently owned by company insiders.

Institutional investors have recently modified their holdings of the stock. Enlightenment Research LLC acquired a new stake in Hormel Foods during the 4th quarter worth $30,000. Acima Private Wealth LLC acquired a new stake in shares of Hormel Foods in the 4th quarter valued at about $34,000. Bremer Trust National Association acquired a new stake in shares of Hormel Foods in the 4th quarter valued at about $43,000. We Are One Seven LLC acquired a new stake in shares of Hormel Foods in the 4th quarter valued at about $45,000. Finally, FTB Advisors Inc. raised its stake in shares of Hormel Foods by 62.7% in the 4th quarter. FTB Advisors Inc. now owns 1,124 shares of the company’s stock valued at $48,000 after purchasing an additional 433 shares during the period. 43.49% of the stock is currently owned by institutional investors and hedge funds.

About Hormel Foods

Hormel Foods Corporation produces and markets various meat and food products in the United States and internationally. The company operates through five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other. It offers various perishable meat products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons; and shelf-stable products, such as canned luncheon meats, peanut butters, chilies, shelf-stable microwaveable meals, hashes, stews, meat spreads, flour and corn tortillas, salsas, tortilla chips, and other products.

Further Reading: What is diluted earnings per share (Diluted EPS)?

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Analyst Recommendations for Hormel Foods (NYSE:HRL)

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