Hormel Foods Co. (NYSE:HRL) Short Interest Up 6.8% in December

Hormel Foods Co. (NYSE:HRL) saw a significant increase in short interest during the month of December. As of December 31st, there was short interest totalling 11,790,000 shares, an increase of 6.8% from the December 15th total of 11,040,000 shares. Based on an average daily volume of 2,320,000 shares, the days-to-cover ratio is presently 5.1 days. Currently, 4.1% of the shares of the company are sold short.

Analysts Set New Price Targets

HRL has been the topic of a number of analyst reports. Citigroup lowered their target price on shares of Hormel Foods from $36.00 to $35.00 and set a “buy” rating on the stock in a research note on Tuesday, November 19th. Stephens initiated coverage on Hormel Foods in a research note on Thursday, October 3rd. They issued an “equal weight” rating and a $31.00 price objective on the stock. Finally, BNP Paribas assumed coverage on Hormel Foods in a research report on Monday, October 21st. They set an “underperform” rating and a $28.00 target price for the company. Two investment analysts have rated the stock with a sell rating, three have given a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $31.00.

Hormel Foods Price Performance

Shares of NYSE HRL traded up $0.04 during mid-day trading on Friday, hitting $29.93. 2,515,109 shares of the stock were exchanged, compared to its average volume of 1,918,130. The company has a market cap of $16.43 billion, a P/E ratio of 20.50, a PEG ratio of 2.85 and a beta of 0.26. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.19 and a current ratio of 2.32. Hormel Foods has a twelve month low of $28.51 and a twelve month high of $36.86. The stock’s fifty day simple moving average is $31.28 and its two-hundred day simple moving average is $31.46.

Hormel Foods (NYSE:HRL) last issued its quarterly earnings data on Wednesday, December 4th. The company reported $0.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.43 by ($0.01). The business had revenue of $3.14 billion during the quarter, compared to the consensus estimate of $3.14 billion. Hormel Foods had a net margin of 6.75% and a return on equity of 10.95%. The company’s revenue for the quarter was down 1.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.42 EPS. As a group, analysts forecast that Hormel Foods will post 1.65 EPS for the current fiscal year.

Hormel Foods Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, February 18th. Stockholders of record on Monday, January 13th will be given a dividend of $0.29 per share. The ex-dividend date of this dividend is Monday, January 13th. This represents a $1.16 dividend on an annualized basis and a dividend yield of 3.88%. This is an increase from Hormel Foods’s previous quarterly dividend of $0.28. Hormel Foods’s payout ratio is presently 77.40%.

Insider Activity

In related news, VP Steven J. Lykken acquired 4,904 shares of the company’s stock in a transaction dated Friday, December 6th. The shares were bought at an average price of $32.47 per share, for a total transaction of $159,232.88. Following the acquisition, the vice president now owns 7,100 shares in the company, valued at $230,537. This trade represents a 223.32 % increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.72% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Hormel Foods

Hedge funds have recently added to or reduced their stakes in the company. Brooklyn Investment Group bought a new position in Hormel Foods in the third quarter valued at approximately $32,000. Prospera Private Wealth LLC bought a new position in shares of Hormel Foods in the 3rd quarter worth $39,000. GAMMA Investing LLC grew its stake in shares of Hormel Foods by 516.9% during the third quarter. GAMMA Investing LLC now owns 1,351 shares of the company’s stock worth $43,000 after purchasing an additional 1,132 shares during the period. Capital Performance Advisors LLP bought a new stake in Hormel Foods in the third quarter valued at about $47,000. Finally, McIlrath & Eck LLC lifted its stake in Hormel Foods by 47.5% in the third quarter. McIlrath & Eck LLC now owns 1,981 shares of the company’s stock valued at $63,000 after buying an additional 638 shares during the period. Institutional investors own 40.99% of the company’s stock.

Hormel Foods Company Profile

Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and other food products to retail, foodservice, deli, and commercial customers in the United States and internationally. It operates through three segments: Retail, Foodservice, and International segments. The company provides various perishable products that include fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons; and shelf-stable products comprising canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and others.