Hormel Foods (NYSE:HRL) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a report issued on Monday.
According to Zacks, “Over the last three months, Hormel Foods shares have outperformed the industry. In the quarters ahead, the company is poised to grow on the back of its stronger demand for products such as SKIPPY, SPAM and Justin's and synergistic benefits from acquired assets. It recently completed the acquisition of Columbus Manufacturing as well as increased its fiscal 2018 earnings per share and revenue guidance. Despite these positives, the company perceives that lower turkey prices will continue to hurt its Jennie-O Turkey Store business. Moreover, lingering challenges in the Specialty Foods business and Refrigerated Foods segment are concerning. Over the last 30 days, Zacks Consensus Estimate for the stock has remained unchanged for both fiscal 2018.”
Other research analysts have also recently issued reports about the company. Credit Suisse Group set a $33.00 price objective on Hormel Foods and gave the company a “hold” rating in a report on Friday, November 24th. Jefferies Group set a $34.00 price objective on Hormel Foods and gave the company a “hold” rating in a report on Sunday, October 29th. Mizuho set a $34.00 price objective on Hormel Foods and gave the company a “hold” rating in a report on Saturday, November 25th. Barclays set a $40.00 price objective on Hormel Foods and gave the company an “overweight” rating in a report on Friday, December 1st. Finally, KeyCorp began coverage on Hormel Foods in a research report on Tuesday, October 31st. They issued a “hold” rating on the stock. One analyst has rated the stock with a sell rating, seven have issued a hold rating and four have issued a buy rating to the company. The company currently has an average rating of “Hold” and an average price target of $35.70.
Hormel Foods (NYSE:HRL) last announced its quarterly earnings results on Tuesday, November 21st. The company reported $0.41 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.40 by $0.01. The firm had revenue of $2.49 billion during the quarter, compared to analyst estimates of $2.41 billion. Hormel Foods had a return on equity of 17.87% and a net margin of 9.24%. Hormel Foods’s revenue for the quarter was down 5.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.45 EPS. sell-side analysts anticipate that Hormel Foods will post 1.69 earnings per share for the current fiscal year.
In other news, Director Elsa A. Murano sold 7,129 shares of the company’s stock in a transaction on Thursday, January 4th. The stock was sold at an average price of $36.00, for a total transaction of $256,644.00. Following the sale, the director now owns 90,991 shares of the company’s stock, valued at $3,275,676. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Steven G. Binder sold 50,000 shares of the company’s stock in a transaction on Monday, November 27th. The stock was sold at an average price of $34.18, for a total value of $1,709,000.00. The disclosure for this sale can be found here. In the last three months, insiders sold 131,001 shares of company stock worth $4,612,826. 1.48% of the stock is owned by corporate insiders.
Institutional investors have recently bought and sold shares of the company. Dupont Capital Management Corp purchased a new stake in shares of Hormel Foods during the third quarter worth $100,000. BB&T Investment Services Inc. purchased a new position in Hormel Foods in the second quarter valued at $118,000. Steward Partners Investment Advisory LLC boosted its stake in Hormel Foods by 3,200.0% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 3,300 shares of the company’s stock valued at $120,000 after acquiring an additional 3,200 shares in the last quarter. Keel Point LLC boosted its stake in Hormel Foods by 2.5% in the second quarter. Keel Point LLC now owns 5,999 shares of the company’s stock valued at $205,000 after acquiring an additional 145 shares in the last quarter. Finally, First Citizens Bank & Trust Co. acquired a new position in Hormel Foods in the fourth quarter valued at $218,000. 38.24% of the stock is currently owned by institutional investors and hedge funds.
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About Hormel Foods
Hormel Foods Corporation is engaged in the production of a range of meat and food products. The Company operates through four segments: Grocery Products, which is engaged in the processing, marketing and sale of shelf-stable food products sold for the retail market and health and also consists of nutrition products, including Muscle Milk protein products.; Refrigerated Foods, which consists of the processing, marketing and sale of branded and unbranded pork, beef, chicken and turkey products for retail, foodservice and fresh product customers; Jennie-O Turkey Store (JOTS), which consists of the processing, marketing and sale of branded and unbranded turkey products for retail, foodservice and fresh product customers; and International & Other, which includes Hormel Foods International Corporation, which manufactures, markets and sells the Company products internationally.
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