Shares of Hormel Foods Corporation (NYSE:HRL) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $32.32, but opened at $33.40. Hormel Foods Corporation shares last traded at $34.52, with a volume of 6793994 shares.

The company reported $0.41 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.40 by $0.01. Hormel Foods Corporation had a return on equity of 18.90% and a net margin of 9.38%. The company had revenue of $2.49 billion for the quarter, compared to analyst estimates of $2.41 billion. During the same period in the prior year, the company posted $0.45 EPS. The firm’s quarterly revenue was down 5.1% compared to the same quarter last year.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, February 15th. Investors of record on Tuesday, January 16th will be given a dividend of $0.1875 per share. This is a positive change from Hormel Foods Corporation’s previous quarterly dividend of $0.17. This represents a $0.75 annualized dividend and a yield of 2.17%. The ex-dividend date of this dividend is Friday, January 12th. Hormel Foods Corporation’s dividend payout ratio is currently 41.98%.

Several brokerages recently issued reports on HRL. BidaskClub raised Hormel Foods Corporation from a “sell” rating to a “hold” rating in a research report on Monday, August 14th. Zacks Investment Research lowered Hormel Foods Corporation from a “hold” rating to a “sell” rating in a report on Monday, August 21st. Barclays PLC cut their price objective on Hormel Foods Corporation from $38.00 to $35.00 and set an “overweight” rating on the stock in a report on Friday, August 25th. BMO Capital Markets reissued an “outperform” rating and issued a $38.00 price objective (down from $45.00) on shares of Hormel Foods Corporation in a report on Friday, August 25th. Finally, Buckingham Research cut their price objective on Hormel Foods Corporation from $37.00 to $33.00 and set a “neutral” rating on the stock in a report on Friday, August 25th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and four have given a buy rating to the company. Hormel Foods Corporation currently has an average rating of “Hold” and an average price target of $34.44.

In other news, Director John L. Morrison sold 24,814 shares of the company’s stock in a transaction dated Friday, October 13th. The stock was sold at an average price of $31.81, for a total value of $789,333.34. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, VP James N. Sheehan sold 35,704 shares of the company’s stock in a transaction dated Wednesday, August 30th. The stock was sold at an average price of $30.87, for a total value of $1,102,182.48. Following the completion of the sale, the vice president now owns 60,000 shares in the company, valued at approximately $1,852,200. The disclosure for this sale can be found here. Insiders sold 194,518 shares of company stock worth $6,132,366 in the last 90 days. Company insiders own 3.54% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of HRL. Fairpointe Capital LLC purchased a new stake in shares of Hormel Foods Corporation in the second quarter worth about $113,723,000. Capital International Investors boosted its stake in shares of Hormel Foods Corporation by 28.4% in the third quarter. Capital International Investors now owns 10,634,975 shares of the company’s stock worth $341,808,000 after buying an additional 2,350,000 shares during the last quarter. Valueinvest Asset Management S.A. boosted its stake in shares of Hormel Foods Corporation by 29.2% in the third quarter. Valueinvest Asset Management S.A. now owns 6,915,500 shares of the company’s stock worth $222,264,000 after buying an additional 1,563,700 shares during the last quarter. Principal Financial Group Inc. boosted its position in Hormel Foods Corporation by 264.7% during the third quarter. Principal Financial Group Inc. now owns 1,505,505 shares of the company’s stock worth $48,387,000 after purchasing an additional 1,092,714 shares in the last quarter. Finally, American Century Companies Inc. boosted its position in Hormel Foods Corporation by 44.2% during the third quarter. American Century Companies Inc. now owns 3,051,908 shares of the company’s stock worth $98,088,000 after purchasing an additional 936,053 shares in the last quarter. Hedge funds and other institutional investors own 38.17% of the company’s stock.

The stock has a market capitalization of $18,250.00, a PE ratio of 20.44, a PEG ratio of 2.17 and a beta of 0.59. The company has a debt-to-equity ratio of 0.05, a current ratio of 2.53 and a quick ratio of 1.37.

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Hormel Foods Corporation Company Profile

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