Jefferies Group Weighs in on Hormel Foods Corp’s Q2 2018 Earnings (HRL)

Hormel Foods Corp (NYSE:HRL) – Investment analysts at Jefferies Group raised their Q2 2018 earnings estimates for Hormel Foods in a research note issued on Wednesday. Jefferies Group analyst A. Jagdale now anticipates that the company will post earnings of $0.46 per share for the quarter, up from their previous estimate of $0.39. Jefferies Group has a “Buy” rating and a $30.00 price target on the stock. Jefferies Group also issued estimates for Hormel Foods’ Q3 2018 earnings at $0.42 EPS and Q4 2018 earnings at $0.49 EPS.

Hormel Foods (NYSE:HRL) last issued its quarterly earnings data on Tuesday, November 21st. The company reported $0.41 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.40 by $0.01. The business had revenue of $2.49 billion during the quarter, compared to the consensus estimate of $2.41 billion. Hormel Foods had a net margin of 9.24% and a return on equity of 17.87%. The firm’s revenue was down 5.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.45 EPS.

Several other equities analysts also recently commented on HRL. Stephens dropped their price objective on shares of Hormel Foods from $50.00 to $38.00 and set an “overweight” rating for the company in a research note on Thursday, October 19th. KeyCorp initiated coverage on shares of Hormel Foods in a research note on Tuesday, October 31st. They set a “hold” rating for the company. Zacks Investment Research raised shares of Hormel Foods from a “sell” rating to a “hold” rating in a research note on Tuesday, October 31st. Morgan Stanley initiated coverage on shares of Hormel Foods in a research note on Friday, November 3rd. They set an “underweight” rating and a $26.00 price target for the company. Finally, BMO Capital Markets reaffirmed a “buy” rating and set a $38.00 price target on shares of Hormel Foods in a research note on Monday, November 6th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and five have issued a buy rating to the stock. Hormel Foods presently has a consensus rating of “Hold” and a consensus price target of $35.30.

Hormel Foods (NYSE HRL) opened at $34.58 on Thursday. The company has a market cap of $17,518.67, a P/E ratio of 21.54, a P/E/G ratio of 2.07 and a beta of 0.49. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.91 and a quick ratio of 1.04. Hormel Foods has a 52 week low of $29.75 and a 52 week high of $38.00.

The firm also recently declared a quarterly dividend, which will be paid on Thursday, February 15th. Stockholders of record on Tuesday, January 16th will be paid a dividend of $0.1875 per share. The ex-dividend date is Friday, January 12th. This represents a $0.75 annualized dividend and a dividend yield of 2.17%. This is an increase from Hormel Foods’s previous quarterly dividend of $0.17. Hormel Foods’s dividend payout ratio (DPR) is presently 47.47%.

In related news, Director Elsa A. Murano sold 7,129 shares of Hormel Foods stock in a transaction on Thursday, January 4th. The shares were sold at an average price of $36.00, for a total transaction of $256,644.00. Following the completion of the transaction, the director now owns 90,991 shares of the company’s stock, valued at $3,275,676. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, VP Gary Jamison sold 4,169 shares of Hormel Foods stock in a transaction on Thursday, November 30th. The stock was sold at an average price of $36.48, for a total transaction of $152,085.12. Following the transaction, the vice president now directly owns 12,615 shares of the company’s stock, valued at approximately $460,195.20. The disclosure for this sale can be found here. Insiders have sold 131,001 shares of company stock valued at $4,612,826 in the last ninety days. Insiders own 3.54% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in HRL. Victory Capital Management Inc. raised its stake in Hormel Foods by 3,639.3% during the fourth quarter. Victory Capital Management Inc. now owns 2,421,969 shares of the company’s stock worth $88,136,000 after buying an additional 2,357,198 shares during the last quarter. Capital International Investors raised its stake in Hormel Foods by 28.4% during 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. raised its stake in Hormel Foods by 29.2% during 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. grew its holdings in Hormel Foods by 264.7% in 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 during the period. Finally, American Century Companies Inc. grew its holdings in Hormel Foods by 44.2% in 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 during the period. 38.31% of the stock is owned by institutional investors and hedge funds.

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Hormel Foods Company Profile

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.

Earnings History and Estimates for Hormel Foods (NYSE:HRL)

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