Hormel (HRL) Stock Rating Lowered by Zacks Investment Research

Hormel (NYSE:HRL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.

According to Zacks, “In the last three months, Hormel Foods’ shares have outperformed the industry. The company perceives that elevated demand for on-trend branded products will bolster its revenues in the upcoming quarters. Hormel Foods also believes that the new tax reform will boost its near-term liquidity, enabling it to fund new investments, raise employee wages and boost shareholders’ return going forward. However, over the last three months, the stock looks overvalued compared to the industry. The company noted that lower turkey prices will continue to hurt its Jennie-O Turkey Store business in the quarters ahead. Moreover, headwinds like unfavorable foreign currency-translation impact might dent results in the upcoming quarters. Over the past 30 days, the Zacks Consensus Estimate for the stock remained unchanged for fiscals 2018 and 2019.”

Several other brokerages also recently weighed in on HRL. Piper Jaffray began coverage on Hormel in a research report on Thursday, January 4th. They set an “overweight” rating and a $42.00 price objective for the company. Jefferies Group upgraded Hormel from a “hold” rating to a “buy” rating and set a $30.00 price objective for the company in a research report on Wednesday, February 14th. Barclays restated a “buy” rating and set a $38.00 price objective (down from $40.00) on shares of Hormel in a research report on Friday, February 23rd. Finally, Credit Suisse Group restated a “neutral” rating on shares of Hormel in a research report on Sunday, February 25th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and five have given a buy rating to the company’s stock. The company has an average rating of “Hold” and an average target price of $34.60.

Shares of NYSE:HRL traded down $0.09 during trading on Tuesday, reaching $35.35. 570,722 shares of the company traded hands, compared to its average volume of 2,967,546. The company has a market cap of $18,556.66, a price-to-earnings ratio of 22.52, a PEG ratio of 2.18 and a beta of 0.44. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.74 and a current ratio of 1.47. Hormel has a 52 week low of $29.75 and a 52 week high of $38.00.

Hormel (NYSE:HRL) last released its earnings results on Thursday, February 22nd. The company reported $0.44 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.44. The firm had revenue of $2.33 billion during the quarter, compared to the consensus estimate of $2.43 billion. Hormel had a return on equity of 17.44% and a net margin of 9.92%. The company’s revenue was up 2.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.44 EPS. research analysts predict that Hormel will post 1.73 EPS for the current fiscal year.

In other Hormel news, Director Glenn S. Forbes sold 4,492 shares of the company’s stock in a transaction dated Friday, March 9th. The stock was sold at an average price of $33.71, for a total value of $151,425.32. Following the completion of the transaction, the director now owns 50,326 shares of the company’s stock, valued at approximately $1,696,489.46. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Luis G. Marconi sold 1,000 shares of the company’s stock in a transaction dated Tuesday, March 13th. The stock was sold at an average price of $33.88, for a total value of $33,880.00. Following the completion of the transaction, the insider now directly owns 21,532 shares of the company’s stock, valued at approximately $729,504.16. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 281,976 shares of company stock valued at $9,718,072. 1.48% of the stock is owned by corporate insiders.

A number of institutional investors and hedge funds have recently modified their holdings of the business. IFP Advisors Inc increased its holdings in Hormel by 11.4% in the 4th quarter. IFP Advisors Inc now owns 14,860 shares of the company’s stock worth $541,000 after purchasing an additional 1,525 shares in the last quarter. First Republic Investment Management Inc. increased its holdings in Hormel by 3.5% in the 4th quarter. First Republic Investment Management Inc. now owns 45,577 shares of the company’s stock worth $1,659,000 after purchasing an additional 1,525 shares in the last quarter. Cetera Advisor Networks LLC increased its holdings in Hormel by 7.2% in the 4th quarter. Cetera Advisor Networks LLC now owns 23,292 shares of the company’s stock worth $846,000 after purchasing an additional 1,566 shares in the last quarter. Comerica Bank increased its holdings in Hormel by 1.7% in the 4th quarter. Comerica Bank now owns 102,560 shares of the company’s stock worth $3,527,000 after purchasing an additional 1,694 shares in the last quarter. Finally, Public Employees Retirement Association of Colorado increased its holdings in Hormel by 3.3% in the 4th quarter. Public Employees Retirement Association of Colorado now owns 54,453 shares of the company’s stock worth $1,982,000 after purchasing an additional 1,715 shares in the last quarter. 39.40% of the stock is owned by institutional investors and hedge funds.

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Hormel Company Profile

Hormel Foods Corporation produces and markets various meat and food products in the United States and internationally. The company operates through five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods, and International & Other. It offers various perishable meat products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamole, and bacon; and shelf-stable products, such as canned luncheon meats, peanut butter, chilies, shelf-stable microwaveable meals, hash, stews, meat spreads, flour and corn tortillas, salsas, tortilla chips, and other products.

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