Hormel Foods (NYSE:HRL) Reaches New 52-Week Low - Here's What Happened

Hormel Foods Co. (NYSE:HRL - Get Free Report)'s share price hit a new 52-week low during trading on Thursday . The company traded as low as $28.27 and last traded at $28.43, with a volume of 299706 shares trading hands. The stock had previously closed at $28.53.

Wall Street Analyst Weigh In

A number of analysts recently commented on HRL shares. Barclays raised Hormel Foods from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, January 22nd. Stephens restated an "equal weight" rating and issued a $31.00 target price on shares of Hormel Foods in a research note on Tuesday. Finally, Citigroup cut their target price on Hormel Foods from $36.00 to $35.00 and set a "buy" rating on the stock in a research note on Tuesday, November 19th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating, one has issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $31.17.

Hormel Foods Price Performance

The firm's 50-day moving average is $30.55 and its 200-day moving average is $31.20. The company has a market capitalization of $15.68 billion, a PE ratio of 19.56, a price-to-earnings-growth ratio of 2.69 and a beta of 0.26. The company has a quick ratio of 1.19, a current ratio of 2.32 and a debt-to-equity ratio of 0.36.

Hormel Foods (NYSE:HRL - Get Free Report) last announced its earnings results on Wednesday, December 4th. The company reported $0.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.43 by ($0.01). Hormel Foods had a return on equity of 10.95% and a net margin of 6.75%. The company had revenue of $3.14 billion during the quarter, compared to analysts' expectations of $3.14 billion. During the same quarter last year, the firm posted $0.42 earnings per share. The firm's revenue was down 1.9% on a year-over-year basis. Equities analysts predict that Hormel Foods Co. will post 1.65 earnings per share for the current fiscal year.

Hormel Foods Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, February 18th. Shareholders of record on Monday, January 13th were given a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a yield of 4.06%. This is a positive change from Hormel Foods's previous quarterly dividend of $0.28. The ex-dividend date of this dividend was Monday, January 13th. Hormel Foods's dividend payout ratio is presently 79.45%.

Insider Buying and Selling at Hormel Foods

In related news, VP Steven J. Lykken purchased 4,904 shares of the firm's stock in a transaction that occurred on Friday, December 6th. The stock was bought at an average cost of $32.47 per share, with a total value of $159,232.88. Following the completion of the purchase, the vice president now directly owns 7,100 shares in the company, valued at approximately $230,537. This represents a 223.32 % increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 0.72% of the company's stock.

Hedge Funds Weigh In On Hormel Foods

Large investors have recently made changes to their positions in the business. Greenleaf Trust raised its holdings in Hormel Foods by 4.4% in the 4th quarter. Greenleaf Trust now owns 8,029 shares of the company's stock worth $252,000 after acquiring an additional 336 shares during the last quarter. Empower Advisory Group LLC grew its position in shares of Hormel Foods by 3.7% during the 3rd quarter. Empower Advisory Group LLC now owns 9,649 shares of the company's stock valued at $306,000 after acquiring an additional 342 shares during the period. CFS Investment Advisory Services LLC grew its position in shares of Hormel Foods by 2.8% during the 4th quarter. CFS Investment Advisory Services LLC now owns 13,445 shares of the company's stock valued at $422,000 after acquiring an additional 360 shares during the period. New Century Financial Group LLC grew its position in shares of Hormel Foods by 6.2% during the 4th quarter. New Century Financial Group LLC now owns 6,738 shares of the company's stock valued at $211,000 after acquiring an additional 392 shares during the period. Finally, MML Investors Services LLC boosted its holdings in Hormel Foods by 4.8% in the 3rd quarter. MML Investors Services LLC now owns 9,108 shares of the company's stock worth $289,000 after buying an additional 416 shares during the period. 40.99% of the stock is currently owned by hedge funds and other institutional investors.

Hormel Foods Company Profile

Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and other food products to retail, foodservice, deli, and commercial customers in the United States and internationally. It operates through three segments: Retail, Foodservice, and International segments. The company provides various perishable products that include fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons; and shelf-stable products comprising canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and others.