Shares of Hormel Foods Corporation (NYSE:HRL) have received an average recommendation of “Hold” from ten brokerages currently monitoring the company, according to a report from MarketBeat. The analysts’ outlook includes two sell ratings, five hold ratings, and three buy ratings, reflecting a cautious but stable sentiment around the stock.
The average price target set by analysts for Hormel Foods over the next twelve months is $28.86. The recent activity among analysts highlights different perspectives on the company’s performance and future growth potential. For instance, Piper Sandler adjusted its target price from $26.00 to $25.00, maintaining a “neutral” rating in a report released on November 6, 2023. Similarly, JPMorgan Chase & Co. lowered its price objective from $30.00 to $27.00 but kept an “overweight” rating on November 21, 2023.
In a contrasting move, Zacks Research downgraded Hormel Foods from a “hold” rating to a “strong sell” rating on August 29, 2023. Meanwhile, Goldman Sachs Group set a price target of $27.00, supporting a “buy” rating on October 30, 2023. Bank of America also revised its price target from $35.00 to $28.00, maintaining a “neutral” stance in its report dated August 29, 2023.
Current Trading Performance
As of Wednesday, Hormel Foods shares opened at $23.29. The company’s 50-day moving average stands at $23.28, while its 200-day moving average is $26.92. Over the past 52 weeks, the stock has experienced a low of $21.03 and a high of $33.80. The company’s market capitalization is approximately $12.81 billion, with a price-to-earnings (P/E) ratio of 17.00 and a beta of 0.29.
Hormel Foods recently reported its earnings results for the third quarter on August 28, 2023. The company posted earnings of $0.35 per share, falling short of the consensus estimate of $0.41 by $0.06. Despite this shortfall, Hormel Foods generated $3.03 billion in revenue for the quarter, surpassing analysts’ expectations of $2.98 billion. This represented a 4.6% increase in revenue compared to the same quarter in the previous year.
Analysts project that Hormel Foods will achieve earnings per share of $1.65 for the current fiscal year.
Dividend Announcement
In addition to its financial performance, Hormel Foods has announced an upcoming quarterly dividend, scheduled for payment on February 17, 2024. Shareholders of record as of January 12, 2024, will receive a dividend of $0.2925 per share. This payment reflects an increase from the previous quarterly dividend of $0.29. The annualized dividend now totals $1.17, yielding approximately 5.0%. Hormel Foods’ dividend payout ratio is reported at 85.40%.
Hormel Foods Corporation engages in the development, processing, and distribution of various meat, nuts, and other food products to retail and commercial customers both within the United States and internationally. The company operates through three main segments: Retail, Foodservice, and International. Its product offerings include a wide range of perishable items such as fresh meats, frozen products, and refrigerated meal solutions, alongside shelf-stable foods like canned luncheon meats and snack nuts.
The evolving landscape of analyst ratings and Hormel Foods’ financial performance underscores the complexity of the food industry, influencing investor sentiment and market dynamics.
