Zacks Investment Research Downgrades Hormel Foods Corporation (HRL) to Sell
Hormel Foods Corporation (NYSE:HRL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Monday.
According to Zacks, “Hormel Foods’ shares look overvalued and have underperformed the industry over the past three months. The company reported weaker-than-expected results for second-quarter fiscal 2017. Lower turkey prices, extensive business rivalry and rise in operational expenses might hurt the near-term margins of its Jennie-O Turkey Store segment. Also, a stronger U.S. dollar might adversely affect results in the quarters ahead. However, the company anticipates that increased sales of major brands and ongoing growth oriented investments would likely boost near-term results. Additionally, Hormel Foods is committed towards returning value to its shareholders. Over the last 30 days, the Zacks Consensus Estimate for the stock has remained unchanged for both fiscal 2017 and 2018.”
Several other equities analysts have also issued reports on HRL. Credit Suisse Group decreased their price target on shares of Hormel Foods Corporation from $41.00 to $39.00 and set a “buy” rating for the company in a report on Friday, May 26th. Barclays PLC initiated coverage on shares of Hormel Foods Corporation in a report on Tuesday, June 6th. They issued an “overweight” rating and a $38.00 price target for the company. Mizuho initiated coverage on shares of Hormel Foods Corporation in a report on Wednesday, June 7th. They issued a “neutral” rating and a $35.00 price target for the company. Jefferies Group LLC reissued a “hold” rating and issued a $34.00 price target on shares of Hormel Foods Corporation in a report on Monday, June 12th. Finally, Stephens reissued an “overweight” rating and issued a $50.00 price target on shares of Hormel Foods Corporation in a report on Friday, June 16th. One analyst has rated the stock with a sell rating, four have issued a hold rating and seven have assigned a buy rating to the company. Hormel Foods Corporation presently has a consensus rating of “Buy” and a consensus target price of $40.50.
Shares of Hormel Foods Corporation (HRL) opened at 33.9849 on Monday. Hormel Foods Corporation has a 1-year low of $32.26 and a 1-year high of $40.00. The company has a market capitalization of $17.96 billion, a price-to-earnings ratio of 20.7225 and a beta of 0.56. The stock’s 50 day moving average price is $33.62 and its 200 day moving average price is $34.58.
Hormel Foods Corporation (NYSE:HRL) last issued its earnings results on Thursday, May 25th. The company reported $0.39 EPS for the quarter, missing the consensus estimate of $0.40 by $0.01. The business had revenue of $2.19 billion for the quarter, compared to the consensus estimate of $2.22 billion. Hormel Foods Corporation had a net margin of 9.42% and a return on equity of 19.57%. The business’s revenue was down 4.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.40 EPS. Analysts expect that Hormel Foods Corporation will post $1.65 EPS for the current year.
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In other news, insider Thomas R. Day sold 11,139 shares of the stock in a transaction dated Thursday, July 6th. The shares were sold at an average price of $33.43, for a total transaction of $372,376.77. Following the completion of the transaction, the insider now directly owns 24,838 shares in the company, valued at approximately $830,334.34. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Luis G. Marconi sold 1,300 shares of the stock in a transaction dated Wednesday, June 14th. The stock was sold at an average price of $34.81, for a total transaction of $45,253.00. Following the transaction, the insider now owns 22,532 shares of the company’s stock, valued at $784,338.92. The disclosure for this sale can be found here. Corporate insiders own 3.54% of the company’s stock.
Several institutional investors have recently bought and sold shares of HRL. Acrospire Investment Management LLC purchased a new stake in shares of Hormel Foods Corporation during the second quarter worth about $111,000. BB&T Investment Services Inc. purchased a new stake in shares of Hormel Foods Corporation during the second quarter worth about $118,000. Canada Pension Plan Investment Board boosted its stake in shares of Hormel Foods Corporation by 230.1% in the first quarter. Canada Pension Plan Investment Board now owns 3,822 shares of the company’s stock worth $132,000 after buying an additional 2,664 shares during the last quarter. SRS Capital Advisors Inc. boosted its stake in shares of Hormel Foods Corporation by 20.1% in the first quarter. SRS Capital Advisors Inc. now owns 4,299 shares of the company’s stock worth $148,000 after buying an additional 718 shares during the last quarter. Finally, Van ECK Associates Corp boosted its stake in shares of Hormel Foods Corporation by 7.2% in the first quarter. Van ECK Associates Corp now owns 4,387 shares of the company’s stock worth $152,000 after buying an additional 295 shares during the last quarter. Institutional investors own 38.40% of the company’s stock.
Hormel Foods Corporation Company Profile
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