Hormel Foods Co. (NYSE:HRL) Short Interest Update

Hormel Foods Co. (NYSE:HRL) was the target of a large growth in short interest in December. As of December 31st, there was short interest totalling 11,790,000 shares, a growth of 6.8% from the December 15th total of 11,040,000 shares. Based on an average daily volume of 2,320,000 shares, the days-to-cover ratio is currently 5.1 days. Approximately 4.1% of the company’s stock are short sold.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. BNP Paribas started coverage on Hormel Foods in a research report on Monday, October 21st. They issued an “underperform” rating and a $28.00 price target for the company. Citigroup lowered their target price on shares of Hormel Foods from $36.00 to $35.00 and set a “buy” rating for the company in a report on Tuesday, November 19th. Finally, Stephens initiated coverage on shares of Hormel Foods in a report on Thursday, October 3rd. They set an “equal weight” rating and a $31.00 price target on the stock. Two research analysts have rated the stock with a sell rating, three have given a hold rating and one has assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $31.00.

Hormel Foods Stock Performance

Shares of NYSE:HRL traded up $0.04 during midday trading on Monday, reaching $29.93. The company had a trading volume of 2,515,109 shares, compared to its average volume of 1,918,130. Hormel Foods has a 52-week low of $28.51 and a 52-week high of $36.86. The company’s 50 day moving average price is $31.28 and its 200 day moving average price is $31.47. The company has a current ratio of 2.32, a quick ratio of 1.19 and a debt-to-equity ratio of 0.36. The stock has a market cap of $16.43 billion, a P/E ratio of 20.50, a P/E/G ratio of 2.85 and a beta of 0.26.

Hormel Foods (NYSE:HRL) last issued its quarterly 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 for the quarter, compared to analysts’ expectations of $3.14 billion. During the same quarter in the previous year, the business earned $0.42 EPS. The company’s revenue for the quarter was down 1.9% on a year-over-year basis. As a group, sell-side analysts anticipate that Hormel Foods will post 1.65 EPS for the current fiscal year.

Hormel Foods Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 18th. Shareholders of record on Monday, January 13th will be issued a dividend of $0.29 per share. The ex-dividend date of this dividend is Monday, January 13th. This is an increase from Hormel Foods’s previous quarterly dividend of $0.28. This represents a $1.16 annualized dividend and a yield of 3.88%. Hormel Foods’s dividend payout ratio is 77.40%.

Insider Buying and Selling at Hormel Foods

In related news, VP Steven J. Lykken purchased 4,904 shares of the business’s stock in a transaction on Friday, December 6th. The stock was acquired at an average price of $32.47 per share, for a total transaction of $159,232.88. Following the purchase, the vice president now owns 7,100 shares of the company’s stock, valued at approximately $230,537. This trade represents a 223.32 % increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 0.72% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Hormel Foods

Large investors have recently modified their holdings of the business. Brooklyn Investment Group bought a new position in Hormel Foods in the 3rd quarter worth approximately $32,000. Prospera Private Wealth LLC bought a new position in shares of Hormel Foods in the third quarter worth $39,000. GAMMA Investing LLC grew its position in shares of Hormel Foods by 516.9% in the third quarter. GAMMA Investing LLC now owns 1,351 shares of the company’s stock valued at $43,000 after purchasing an additional 1,132 shares in the last quarter. Capital Performance Advisors LLP purchased a new stake in Hormel Foods during the 3rd quarter worth about $47,000. Finally, McIlrath & Eck LLC lifted its holdings in Hormel Foods by 47.5% during the 3rd quarter. McIlrath & Eck LLC now owns 1,981 shares of the company’s stock worth $63,000 after purchasing an additional 638 shares in the last quarter. Hedge funds and other institutional investors own 40.99% of the company’s stock.

About Hormel Foods

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.