Hormel Foods Secures Average “Moderate Buy” Rating from Analysts

Shares of Hormel Foods Corporation (NYSE:HRL) have received an average rating of “Moderate Buy” from seven brokerages currently covering the company, according to data from Marketbeat. This assessment includes four analysts who have assigned a hold rating, two who recommend buying the stock, and one who issued a strong buy rating. The average price target set by these brokerages for the next twelve months stands at $32.86.

Several investment firms have recently updated their evaluations of Hormel Foods. On May 27, BNP Paribas Exane upgraded the company from an “underperform” rating to a “neutral” rating, establishing a price target of $30.00. On June 23, The Goldman Sachs Group initiated coverage, issuing a buy rating with a higher target of $35.00. In a report dated April 15, Bank of America also improved its rating from “underperform” to “neutral,” raising its price target from $29.00 to $35.00.

In addition, Stephens reiterated an “equal weight” rating with a price target of $31.00, while BNP Paribas moved Hormel Foods from a “strong sell” rating to a “hold” rating on the same day as its initial upgrade.

Institutional Trading Activity

Recent activity among institutional investors has further influenced Hormel Foods’ stock performance. TD Asset Management Inc increased its holdings by 8.7% during the second quarter, now owning 515,783 shares valued at approximately $15.6 million after acquiring an additional 41,389 shares.

Similarly, Morningstar Investment Management LLC established a new position worth $243,000, while Sequoia Financial Advisors LLC added shares valued at about $333,000. Total Clarity Wealth Management Inc. significantly raised its stake by 72.7%, totaling 14,447 shares worth $437,000. Furthermore, CWM LLC increased its holdings by 5.3%, now owning 580,073 shares valued at approximately $17.5 million. Overall, institutional investors hold 40.99% of Hormel Foods’ stock.

Recent Performance and Earnings Report

As of Thursday, shares of Hormel Foods opened at $28.56. The stock has fluctuated within a twelve-month range, reaching a low of $27.59 and a high of $33.80. The company reported a quick ratio of 1.17, a current ratio of 2.47, and a debt-to-equity ratio of 0.35. Hormel Foods boasts a market capitalization of $15.70 billion, a price-to-earnings (P/E) ratio of 21.00, and a beta of 0.33.

The latest quarterly earnings report, released on May 29, 2024, showed earnings per share (EPS) of $0.35, aligning with analyst expectations. The company reported revenue of $2.90 billion, slightly below the projected $2.92 billion. The firm experienced a net margin of 6.27% and a return on equity of 10.20%, with a year-over-year revenue increase of 0.3%.

Analysts predict that Hormel Foods will report an EPS of $1.65 for the current fiscal year.

Dividend Declaration

Hormel Foods also recently announced a quarterly dividend of $0.29 per share, which will be distributed to shareholders on August 15, 2024. Those on record as of July 14, 2024, will be eligible for this dividend, representing an annualized total of $1.16 and a dividend yield of 4.06%. The ex-dividend date for this distribution is July 14, 2024, and the company maintains a payout ratio of 85.29%.

Hormel Foods Corporation develops, processes, and distributes a wide range of food products, including meats, nuts, and other items for retail, food service, deli, and commercial customers both domestically and internationally. The company operates through three segments: Retail, Foodservice, and International, providing perishable products such as fresh meats and frozen items, as well as shelf-stable products including canned goods and microwaveable meals.