Hormel Foods Corp. (NYSE:HRL) finished Wednesday with a subtraction of -$0.52 to close at $38.33, a downside of -1.34 percent. An average of 2,017,720 shares of common stock have been traded in the last five days. There was a fall of -$0.46 in the past week, and it reached a new high 7 times over the past 12 months. The last 20 days have seen an average of 2,507,890 shares traded, while the 50-day average volume stands at 1,970,718.
HRL stock has decreased by -3.55% in the last month. The company shares reached their 1-month lowest point of $36.78 on 09/08/23. With the stock rallying to its 52-week high on 01/06/23, shares of the company touched a low of $36.78 and a high of $49.73 in 52 weeks. It has reached a new high 3 times so far this year and lost -15.85% or -$7.22 in price. In spite of this, the price is down -22.92% from the 52-week high.
Insider Transactions
HRL stock investors should be aware that Hormel Foods Corp. (HRL) stock had its last reported insider trading activity 107 days ago on Sep 06. 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 Corp. (HRL) has a trailing price-to-earnings (P/E) ratio of 24.00. The stock’s beta is 0.18. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.72, the price-to-book (PB) ratio at 2.72, and the price-to-cash flow ratio at 24.87.
Financial Health
The quick ratio of Hormel Foods Corp. for the three months ended July 30 was 0.65, and the current ratio was 1.40, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.31 and a total debt to equity ratio of 0.43 for the quarter ending July 30. Hormel Foods Corp.’s EBITDA margin for the year ending July 30 is 12.14%, while its operating margin for the same period stands at 8.96%. Its gross profit as reported stood at $2.16 billion compared to revenue of $12.46 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Hormel Foods Corp.’s return on assets was 6.61%.
Earnings Surprise
For the three-month period that ended July 30, Hormel Foods Corp. had $3.29 billion in total debt. In the quarter under review, the net income was down 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 Corp.’s latest quarter earnings to come in at $0.41 per share, but it turned out to be $0.4, a -2.40% surprise. For the quarter, EBITDA amounted to $301.3 million. Shareholders own equity worth $546.48 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Hormel Foods Corp. (HRL) price momentum. RSI 9-day as of the close on 27 September was 45.38%, suggesting the stock is Neutral, with historical volatility in this time frame at 13.27%.
As of today, HRL’s price is $38.87 -1.19% or -$0.46 from its 5-day moving average. HRL is currently trading -3.72% lower than its 20-day SMA and -6.31% lower than its 100-day SMA. However, the stock’s current price level is -2.54% below the SMA50 and -19.56% below the SMA200.
The stochastic %K and %D were 68.75% and 75.24%, respectively, and the average true range (ATR) was 0.61. With the 14-day stochastic at 55.44% and the average true range at 0.61, the RSI (14) stands at 45.57%. The stock has reached 0.03 on the 9-day MACD Oscillator while the 14-day reading was at 0.43.
Analyst Ratings
Argus downgraded Hormel Foods Corp. (NYSE: HRL) to a a Hold rating in its most recent analyst report. Previously, the stock was rated as a Buy.
