Vertical Group Downgrades Hormel Foods (HRL) to Sell

Vertical Group downgraded shares of Hormel Foods (NYSE:HRL) from a hold rating to a sell rating in a research report report published on Tuesday, The Fly reports. The analysts noted that the move was a valuation call.

A number of other research analysts have also weighed in on the company. Mizuho lowered Hormel Foods from a neutral rating to an underperform rating and set a $33.00 target price on the stock. in a report on Wednesday, July 25th. Jefferies Financial Group reissued a buy rating and set a $44.00 target price on shares of Hormel Foods in a report on Wednesday, August 29th. Zacks Investment Research raised Hormel Foods from a sell rating to a hold rating in a report on Tuesday, August 21st. JPMorgan Chase & Co. started coverage on Hormel Foods in a report on Friday, September 28th. They set a neutral rating and a $41.00 target price on the stock. Finally, Buckingham Research boosted their target price on Hormel Foods from $32.00 to $34.00 and gave the stock a neutral rating in a report on Thursday, August 16th. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and three have assigned a buy rating to the company’s stock. Hormel Foods currently has an average rating of Hold and a consensus price target of $39.67.

Shares of HRL stock traded up $0.48 during trading on Tuesday, reaching $45.02. 1,849,093 shares of the company’s stock were exchanged, compared to its average volume of 3,343,398. The company has a current ratio of 1.69, a quick ratio of 0.78 and a debt-to-equity ratio of 0.12. The firm has a market capitalization of $23.53 billion, a PE ratio of 28.68, a PEG ratio of 2.86 and a beta of 0.14. Hormel Foods has a twelve month low of $31.71 and a twelve month high of $45.13.

Hormel Foods (NYSE:HRL) last posted its earnings results on Thursday, August 23rd. The company reported $0.39 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.39. The business had revenue of $2.36 billion for the quarter, compared to analyst estimates of $2.38 billion. Hormel Foods had a return on equity of 17.44% and a net margin of 10.18%. The firm’s revenue was up 6.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.34 EPS. As a group, sell-side analysts predict that Hormel Foods will post 1.73 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, November 15th. Investors of record on Monday, October 22nd will be paid a $0.1875 dividend. The ex-dividend date is Friday, October 19th. This represents a $0.75 annualized dividend and a yield of 1.67%. Hormel Foods’s dividend payout ratio (DPR) is presently 47.77%.

In related news, VP Thomas R. Day sold 11,856 shares of the business’s stock in a transaction on Thursday, August 30th. The stock was sold at an average price of $38.52, for a total value of $456,693.12. Following the completion of the sale, the vice president now directly owns 4,964 shares in the company, valued at approximately $191,213.28. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Chairman James P. Snee sold 21,923 shares of the business’s stock in a transaction on Tuesday, August 28th. The shares were sold at an average price of $37.85, for a total value of $829,785.55. Following the completion of the sale, the chairman now owns 49,326 shares of the company’s stock, valued at $1,866,989.10. The disclosure for this sale can be found here. Insiders sold a total of 138,632 shares of company stock valued at $5,556,981 over the last 90 days. 3.54% of the stock is currently owned by corporate insiders.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. boosted its stake in Hormel Foods by 1.8% in the 2nd quarter. BlackRock Inc. now owns 20,547,912 shares of the company’s stock valued at $764,587,000 after purchasing an additional 358,834 shares during the period. Macquarie Group Ltd. lifted its position in shares of Hormel Foods by 45,760.7% during the 2nd quarter. Macquarie Group Ltd. now owns 6,191,200 shares of the company’s stock valued at $230,375,000 after acquiring an additional 6,177,700 shares during the period. Victory Capital Management Inc. lifted its position in shares of Hormel Foods by 28.6% during the 3rd quarter. Victory Capital Management Inc. now owns 4,910,525 shares of the company’s stock valued at $193,474,000 after acquiring an additional 1,093,493 shares during the period. US Bancorp DE lifted its position in shares of Hormel Foods by 14.0% during the 3rd quarter. US Bancorp DE now owns 2,260,439 shares of the company’s stock valued at $89,062,000 after acquiring an additional 278,314 shares during the period. Finally, Principal Financial Group Inc. lifted its position in shares of Hormel Foods by 10.3% during the 1st quarter. Principal Financial Group Inc. now owns 2,021,199 shares of the company’s stock valued at $69,367,000 after acquiring an additional 188,805 shares during the period. Institutional investors and hedge funds own 41.95% of the company’s stock.

Hormel Foods Company Profile

Hormel Foods Corporation produces and markets various meat and food products in the United States and internationally. The company operates through five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods, and International & Other. It offers various perishable meat products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamole, and bacon; and shelf-stable products, such as canned luncheon meats, peanut butter, chilies, shelf-stable microwaveable meals, hash, stews, meat spreads, flour and corn tortillas, salsas, tortilla chips, and other products.

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