Hormel Foods (NYSE:HRL) Stock Rating Upgraded by Zacks Investment Research

Hormel Foods (NYSE:HRL) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Tuesday, Zacks.com reports. The brokerage presently has a $50.00 price target on the stock. Zacks Investment Research‘s price objective would indicate a potential upside of 5.35% from the stock’s previous close.

According to Zacks, “Hormel Foods has lagged the industry in the past six months. The company is seeing declines in its foodservice business amid COVID-19-led social distancing. During first-quarter fiscal 2021, net sales in U.S. foodservice channel fell 17% year over year. That said, management expects to witness recovery in the foodservice industry in fiscal 2021. Apart from this, the company is facing higher supply-chain costs related to the pandemic. This hurt fiscal first-quarter earnings, which fell 9%. Nevertheless, the company is impressed with growth witnessed in the International & Other unit. Notably, sales in the segment rose 13% in the quarter. Also, Hormel Foods’ focus on innovation and boosting capacity with strategic investments are yielding. With rising health consciousness, the company is focusing on growing its plant-based food options.”

Several other analysts also recently issued reports on HRL. Argus downgraded Hormel Foods from a “buy” rating to a “hold” rating in a research note on Wednesday, December 9th. Bank of America decreased their price target on Hormel Foods from $45.00 to $44.00 and set an “underperform” rating for the company in a research note on Wednesday, November 25th. Finally, JPMorgan Chase & Co. decreased their price target on Hormel Foods from $44.00 to $40.00 in a research note on Tuesday, January 19th. One research analyst has rated the stock with a sell rating and eight have issued a hold rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus target price of $46.38.

NYSE HRL traded up $0.18 on Tuesday, reaching $47.46. The stock had a trading volume of 5,659 shares, compared to its average volume of 3,410,551. The business has a 50 day moving average price of $46.78 and a 200 day moving average price of $48.77. The company has a current ratio of 2.38, a quick ratio of 1.67 and a debt-to-equity ratio of 0.16. Hormel Foods has a 1 year low of $39.01 and a 1 year high of $52.97. The company has a market capitalization of $25.62 billion, a price-to-earnings ratio of 28.42, a P/E/G ratio of 4.14 and a beta of -0.06.

Hormel Foods (NYSE:HRL) last issued its earnings results on Wednesday, February 17th. The company reported $0.41 EPS for the quarter, beating analysts’ consensus estimates of $0.40 by $0.01. Hormel Foods had a return on equity of 14.55% and a net margin of 9.45%. During the same period in the prior year, the company earned $0.45 EPS. On average, analysts anticipate that Hormel Foods will post 1.76 earnings per share for the current fiscal year.

In other Hormel Foods news, SVP Steven J. Lykken acquired 6,873 shares of the business’s stock in a transaction that occurred on Wednesday, December 2nd. The stock was acquired at an average price of $46.97 per share, with a total value of $322,824.81. Following the transaction, the senior vice president now owns 26,720 shares of the company’s stock, valued at $1,255,038.40. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 0.80% of the stock is currently owned by insiders.

A number of institutional investors have recently bought and sold shares of HRL. First Trust Advisors LP raised its holdings in Hormel Foods by 200.2% in the 4th quarter. First Trust Advisors LP now owns 4,199,680 shares of the company’s stock valued at $195,747,000 after acquiring an additional 2,800,643 shares in the last quarter. BlackRock Inc. raised its holdings in shares of Hormel Foods by 2.1% in the 3rd quarter. BlackRock Inc. now owns 30,602,350 shares of the company’s stock worth $1,496,150,000 after buying an additional 626,759 shares in the last quarter. Wells Fargo & Company MN raised its holdings in shares of Hormel Foods by 29.4% in the 3rd quarter. Wells Fargo & Company MN now owns 2,594,703 shares of the company’s stock worth $126,856,000 after buying an additional 590,024 shares in the last quarter. New York State Common Retirement Fund raised its holdings in shares of Hormel Foods by 26.0% in the 3rd quarter. New York State Common Retirement Fund now owns 1,517,404 shares of the company’s stock worth $74,186,000 after buying an additional 312,800 shares in the last quarter. Finally, Principal Financial Group Inc. raised its holdings in shares of Hormel Foods by 7.4% in the 4th quarter. Principal Financial Group Inc. now owns 4,561,418 shares of the company’s stock worth $212,608,000 after buying an additional 312,630 shares in the last quarter. 42.78% of the stock is owned by hedge funds and other institutional investors.

About Hormel Foods

Hormel Foods Corporation produces and markets various meat and food products to retail, foodservice, deli, and commercial customers in the United States and internationally. The company operates through four segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other.

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