Zacks Investment Research upgraded shares of Hormel Foods Corp. (NYSE:HRL) from a hold rating to a buy rating in a research report report published on Monday. Zacks Investment Research currently has $40.00 target price on the stock.
According to Zacks, “Hormel Foods is strategically improving its sales and margins on the back of greater innovation, a balanced product portfolio, improved operational efficacy and meaningful business acquisitions. Also, higher demand for major brands such as Muscle Milk Protein products and Skippy & Spam products is expected to augment the company's near-term sales. Hormel Foods has reaffirmed to generate adjusted earnings within the range of $1.60-$1.64 per share for fiscal 2016. Notably, the company anticipates generating 5% revenue growth and 10% earnings growth in the upcoming years, with support of these bullish factors. Over the last 60 days, Zacks Consensus Estimate for the company has been revised upward for fiscal 2017.”
Other equities research analysts have also issued research reports about the stock. Jefferies Group reaffirmed a hold rating on shares of Hormel Foods Corp. in a research note on Wednesday, August 3rd. Vetr lowered shares of Hormel Foods Corp. from a strong-buy rating to a buy rating and set a $42.00 target price for the company. in a research report on Monday, October 10th. Edward Jones raised shares of Hormel Foods Corp. from a hold rating to a buy rating in a research report on Friday, September 16th. Deutsche Bank AG reissued a hold rating and set a $38.00 target price on shares of Hormel Foods Corp. in a research report on Tuesday, August 16th. Finally, Oppenheimer Holdings Inc. began coverage on shares of Hormel Foods Corp. in a research report on Friday, September 16th. They set a market perform rating and a $39.00 target price for the company. Two analysts have rated the stock with a sell rating, four have given a hold rating and six have assigned a buy rating to the company’s stock. Hormel Foods Corp. currently has a consensus rating of Hold and an average price target of $40.22.
Hormel Foods Corp. (NYSE:HRL) opened at 35.23 on Monday. Hormel Foods Corp. has a one year low of $33.70 and a one year high of $45.72. The company has a market cap of $18.64 billion, a PE ratio of 22.88 and a beta of 0.52. The firm has a 50-day moving average of $37.05 and a 200-day moving average of $36.75.
Hormel Foods Corp. (NYSE:HRL) last released its quarterly earnings data on Tuesday, November 22nd. The company reported $0.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.46 by $0.01. Hormel Foods Corp. had a net margin of 9.35% and a return on equity of 20.75%. The business earned $2.63 billion during the quarter, compared to analyst estimates of $2.62 billion. During the same period in the previous year, the firm posted $0.37 EPS. The firm’s revenue for the quarter was up 9.5% on a year-over-year basis. On average, analysts predict that Hormel Foods Corp. will post $1.69 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, February 15th. Investors of record on Tuesday, January 17th will be paid a $0.17 dividend. The ex-dividend date is Thursday, January 12th. This represents a $0.68 dividend on an annualized basis and a yield of 1.93%. This is a boost from Hormel Foods Corp.’s previous quarterly dividend of $0.15. Hormel Foods Corp.’s payout ratio is presently 35.37%.
In related news, insider Steven G. Binder sold 12,000 shares of the company’s stock in a transaction dated Thursday, October 13th. The shares were sold at an average price of $37.98, for a total value of $455,760.00. Following the sale, the insider now owns 41,622 shares of the company’s stock, valued at $1,580,803.56. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Brian Dean Johnson sold 3,500 shares of the company’s stock in a transaction dated Tuesday, September 27th. The shares were sold at an average price of $38.00, for a total transaction of $133,000.00. Following the completion of the sale, the vice president now directly owns 26,119 shares in the company, valued at approximately $992,522. The disclosure for this sale can be found here. 3.54% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently bought and sold shares of HRL. Robeco Institutional Asset Management B.V. boosted its stake in Hormel Foods Corp. by 12.9% in the second quarter. Robeco Institutional Asset Management B.V. now owns 1,704,019 shares of the company’s stock worth $62,369,000 after buying an additional 194,459 shares during the last quarter. Legal & General Group Plc boosted its stake in shares of Hormel Foods Corp. by 89.5% in the first quarter. Legal & General Group Plc now owns 1,160,357 shares of the company’s stock valued at $50,177,000 after buying an additional 548,017 shares in the last quarter. Bank of Montreal Can purchased a new stake in shares of Hormel Foods Corp. during the second quarter valued at $15,105,000. Chevy Chase Trust Holdings Inc. boosted its stake in shares of Hormel Foods Corp. by 1.2% in the second quarter. Chevy Chase Trust Holdings Inc. now owns 230,931 shares of the company’s stock valued at $8,453,000 after buying an additional 2,805 shares in the last quarter. Finally, Bristol Gate Capital Partners Inc. boosted its stake in shares of Hormel Foods Corp. by 38.0% in the second quarter. Bristol Gate Capital Partners Inc. now owns 783,965 shares of the company’s stock valued at $28,693,000 after buying an additional 215,986 shares in the last quarter. 34.56% of the stock is currently owned by institutional investors and hedge funds.
About Hormel Foods Corp.