Hormel Foods Corporation (NYSE:HRL) finished Wednesday with an addition of $0.57 to close at $40.71, an upside of 1.42 percent. An average of 1,408,340 shares of common stock have been traded in the last five days. There was a fall of -$0.68 in the past week, and it reached a new high 10 times over the past 12 months. The last 20 days have seen an average of 1,598,650 shares traded, while the 50-day average volume stands at 2,073,674.
HRL stock has increased by 3.83% in the last month. The company shares reached their 1-month lowest point of $39.01 on 07/13/23. With the stock rallying to its 52-week high on 01/06/23, shares of the company touched a low of $37.78 and a high of $51.69 in 52 weeks. It has reached a new high 3 times so far this year and lost -10.63% or -$4.84 in price. In spite of this, the price is down -21.24% from the 52-week high.
Insider Transactions
HRL stock investors should be aware that Hormel Foods Corporation (HRL) stock had its last reported insider trading activity 58 days ago on Jun 13. In this transaction, the insider spent $377,200. GROUP VICE PRESIDENT, Coffey Mark A, disposed of 31,400 shares at a price of $40.50 on Jun 08. The insider now owns more than $1,271,700 worth of shares. Prior to that, SENIOR VICE PRESIDENT Myers Kevin L went on to Sale 5,200 shares at $40.51 each on Jun 08. An amount of $210,668 was transacted.
Valuation Metrics
Hormel Foods Corporation (HRL) has a trailing price-to-earnings (P/E) ratio of 23.98. The stock’s beta is 0.18. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.83, the price-to-book (PB) ratio at 2.89, and the price-to-cash flow ratio at 147.41.
The company has a payout ratio of 61.70%. The company’s most recent quarterly dividend payment was $0.2750 a share, without any change from last year. Its latest increase dividend $0.0150 reported on Monday November 21 2022.
Financial Health
The quick ratio of Hormel Foods Corporation for the three months ended April 29 was 1.10, and the current ratio was 2.40, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.43 and a total debt to equity ratio of 0.43 for the quarter ending April 29. Hormel Foods Corporation’s EBITDA margin for the year ending April 29 is 12.14%, while its operating margin for the same period stands at 10.10%. Its gross profit as reported stood at $2.16 billion compared to revenue of $12.46 billion.
Earnings Surprise
For the three-month period that ended April 29, Hormel Foods Corporation had $16.15 million in cash and short-term investments compared to $3.29 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $372.89 million in the quarter, while revenues of $281.74 million were grew 40.39%. The analyst consensus anticipated Hormel Foods Corporation’s latest quarter earnings to come in at $0.4 per share, but it turned out to be $0.4, a 0.00% surprise. For the quarter, EBITDA amounted to $383.45 million. Shareholders own equity worth $546.27 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Hormel Foods Corporation (HRL) price momentum. RSI 9-day as of the close on 09 August was 53.06%, suggesting the stock is Neutral, with historical volatility in this time frame at 18.71%.
As of today, HRL’s price is $40.59 -1.64% or -$0.68 from its 5-day moving average. HRL is currently trading +3.98% higher than its 20-day SMA and +3.96% higher than its 100-day SMA. However, the stock’s current price level is +5.82% above the SMA50 and -9.31% below the SMA200.
The stochastic %K and %D were 44.50% and 51.26%, respectively, and the average true range (ATR) was 0.63. With the 14-day stochastic at 42.78% and the average true range at 0.63, the RSI (14) stands at 53.10%. The stock has reached -0.23 on the 9-day MACD Oscillator while the 14-day reading was at -0.15.
Analyst Ratings
Argus downgraded Hormel Foods Corporation (NYSE: HRL) to a a Hold rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Hormel Foods Corporation (HRL) among analysts is Underweight. According to current brokerage recommendations, 2 brokerage firms advise that investors sell HRL, while 7 suggest investors hold. There are 2 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 0 others rate it as a “buy”.
What is HRL’s price target for the next 12 months?
Analysts predict a range of price targets between $34.00 and $45.10, with a median target of $42.00. Taking a look at these predictions, the average price target given by analysts for Hormel Foods Corporation (HRL) stock is $41.26.
