Hormel Foods (NYSE:HRL) Hits New 52-Week Low – What’s Next?

Hormel Foods Corporation (NYSE:HRL) shares reached a new 52-week low on Wednesday. The company traded as low as $18.96 and last traded at $19.2170, with a volume of 4,380,659 shares changing hands. The stock had previously closed at $19.30.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on HRL. Piper Sandler reiterated a “neutral” rating on shares of Hormel Foods in a research report on Tuesday, October 6th. Weiss Ratings cut Hormel Foods from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, August 28th. Bank of America raised their target price on Hormel Foods from $25.00 to $27.00 and gave the company a “neutral” rating in a research report on Tuesday, June 30th. BNP Paribas Exane restated a “neutral” rating and issued a $23.00 price target (down from $26.00) on shares of Hormel Foods in a research note on Wednesday, October 7th. Finally, Stephens set a $23.00 price target on Hormel Foods in a report on Friday, August 28th. Two analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Hormel Foods presently has an average rating of “Hold” and an average price target of $25.71.

Hormel Foods Stock Down 0.4%

The company has a quick ratio of 0.92, a current ratio of 1.88 and a debt-to-equity ratio of 0.30. The firm has a market capitalization of $10.58 billion, a PE ratio of 13.50, a price-to-earnings-growth ratio of 2.27 and a beta of 0.30. The business has a 50-day moving average price of $21.76 and a 200-day moving average price of $22.61.

Hormel Foods (NYSE:HRL) last announced its quarterly earnings data on Wednesday, August 26th. The company reported $0.37 EPS for the quarter, topping analysts’ consensus estimates of $0.35 by $0.02. The firm had revenue of $2.96 billion for the quarter, compared to the consensus estimate of $3.03 billion. Hormel Foods had a return on equity of 9.91% and a net margin of 2.82%. The firm’s revenue was down 2.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.35 earnings per share. Equities research analysts forecast that Hormel Foods Corporation will post 1.48 earnings per share for the current fiscal year.

Hormel Foods Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, November 16th. Shareholders of record on Tuesday, October 13th will be paid a $0.2925 dividend. The ex-dividend date of this dividend is Tuesday, October 13th. This represents a $1.17 dividend on an annualized basis and a dividend yield of 6.1%. Hormel Foods’s dividend payout ratio (DPR) is 185.71%.

Insider Activity at Hormel Foods

In other news, Chairman William A. Newlands purchased 10,000 shares of the stock in a transaction dated Monday, October 5th. The shares were purchased at an average price of $20.10 per share, with a total value of $201,000.00. Following the transaction, the chairman owned 76,375 shares in the company, valued at $1,535,137.50. The trade was a 15.07% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.58% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Hormel Foods

Hedge funds and other institutional investors have recently bought and sold shares of the company. The Manufacturers Life Insurance Company purchased a new stake in shares of Hormel Foods in the 2nd quarter valued at approximately $5,554,000. Public Employees Retirement System of Ohio purchased a new position in shares of Hormel Foods during the 2nd quarter worth approximately $2,050,000. Masters Capital Management LLC purchased a new position in shares of Hormel Foods during the 1st quarter worth approximately $19,252,000. Fidelity National Financial Inc. purchased a new position in shares of Hormel Foods during the 2nd quarter worth approximately $16,381,000. Finally, Core Capital Management & Research inc. purchased a new position in shares of Hormel Foods during the 2nd quarter worth approximately $7,729,000. 40.99% of the stock is currently owned by institutional investors and hedge funds.

Hormel Foods Company Profile

Hormel Foods Corporation is a global food company headquartered in Austin, Minnesota. Founded in 1891 by George A. Hormel, the company began as a meat processor and has expanded into a broad portfolio of branded food products sold through retail, foodservice and international channels.

Its products include refrigerated and shelf-stable meat, deli meats, bacon, pepperoni, sausages, canned foods, nut products and other prepared foods. Key brands include Hormel, SPAM, Jennie-O, Applegate, Columbus and Planters.