Hormel Foods Corporation (HRL) Stock Price Down 5.4% Following Weak Earnings

Credit Suisse Group set a $41.00 price objective on Hormel Foods Corporation and gave the stock a "buy" rating in a research note on Wednesday, November 23rd. Zacks Investment Research cut shares of Hormel Foods Corporation from a "strong-buy" rating to a "hold" rating in a report on Wednesday, November 2nd. Hormel Foods Corporation has an average rating of "Hold" and an average price target of $40.75. Equity research analysts have given opinions on where they foresees the stock level. They issued an "overweight" rating and a $40.00 target price for the company. The third largest holder is Blackrock Institutional Trust Company, N.A., which now holds $360.39 million worth of this stock and that ownership represents almost 1.93% of its market capitalization. The stock hit its 52-Week High on Mar 16, 2016 and 52-Week Low on Dec 6, 2016.

Hormel Foods Corp. reported Thursday a fiscal first-quarter profit of $235.1 million, or 44 cents a share, compared with a profit of $235.2 million, or 43 cents a share, in the same period a year ago. The difference between the estimated and actual earnings was $-0.01 per share. Analysts polled by Thomson Reuters expected 45 cents a share on $2.28 billion in sales.

Hormel Foods Corporation last declared its Dividend on Jan 12, 2017. The company had Year Ago Sales of $2.44 Billion.

The company's Refrigerated Foods segment generated revenues of $1,123 million, down 3.4% year over year.

Hormel Foods projects earnings within the range of $1.65-$1.71 per share for fiscal 2017 as against the previously stated guidance of $1.68-$1.74 per share.

The company paid its 354th consecutive quarterly dividend at an annualized rate of 68 cents, effective Feb 15, 2016. The High end of the forecast is $0.48/share, while the Low end is $0.41/share. It has a Payout Ratio of 0.35 and the change in Dividend payout ratio is -0.02.

Fortinet Inc. (NASDAQ:FTNT) is expected to report revenue of $334.62 Million for the current quarter, according to consensus estimate of 24 analysts. Hormel Foods Corporation's dividend payout ratio (DPR) is now 41.46%.

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 $35.23, for a total value of $70,460.00. Following the transaction, the director now owns 143,644 shares in the company, valued at approximately $5,175,493.32. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Robert Nakasone sold 18,502 shares of the company's stock in a transaction on Friday, January 6th. The 52-week low of the share price is $33.18. The disclosure for this sale can be found here.

A number of institutional investors have recently modified their holdings of the stock. LLC raised its stake in shares of Hormel Foods Corporation by 95.7% in the third quarter. Wilbanks Smith & Thomas Asset Management LLC now owns 8,426 shares of the company's stock worth $320,000 after buying an additional 30 shares during the period. Curbstone Financial Management increased its position in shares of Hormel Foods Corporation by 98.5% in the fourth quarter. In the last three months, insiders have sold 55,164 shares of company stock worth $1,914,055. Huntington National Bank increased its position in shares of Hormel Foods Corporation by 17.1% in the third quarter. Tower Research Capital LLC TRC boosted its position in Hormel Foods Corporation by 204.0% in the third quarter.

  • Zachary Reyes