Investors purchased shares of Hormel Foods Corp. (NYSE:HRL) on weakness during trading on Wednesday after the company announced weaker than expected quarterly earnings. $41.20 million flowed into the stock on the tick-up and $20.05 million flowed out of the stock on the tick-down, for a money net flow of $21.15 million into the stock. Of all stocks tracked, Hormel Foods Corp. had the 16th highest net in-flow for the day. Hormel Foods Corp. traded down ($0.63) for the day and closed at $35.23The company reported $0.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.46 by $0.01. Hormel Foods Corp. had a net margin of 8.96% and a return on equity of 20.06%. The business earned $2.63 billion during the quarter, compared to analyst estimates of $2.62 billion. During the same period in the previous year, the business posted $0.37 EPS. The business’s revenue for the quarter was up 9.5% compared to the same quarter last year.

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, February 15th. Shareholders of record on Tuesday, January 17th will be issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 1.93%. This is an increase from Hormel Foods Corp.’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend is Thursday, January 12th. Hormel Foods Corp.’s payout ratio is currently 37.79%.

A number of research firms have issued reports on HRL. BMO Capital Markets lifted their price objective on shares of Hormel Foods Corp. from $34.00 to $45.00 and gave the stock an “outperform” rating in a report on Wednesday. Credit Suisse Group AG reaffirmed a “buy” rating and set a $41.00 price objective on shares of Hormel Foods Corp. in a report on Wednesday. Zacks Investment Research raised shares of Hormel Foods Corp. from a “hold” rating to a “buy” rating and set a $40.00 price objective on the stock in a report on Monday. Vetr downgraded shares of Hormel Foods Corp. from a “strong-buy” rating to a “buy” rating and set a $42.00 price objective on the stock. in a report on Monday, October 10th. Finally, Oppenheimer Holdings Inc. began coverage on shares of Hormel Foods Corp. in a report on Friday, September 16th. They set a “market perform” rating and a $39.00 price objective on the stock. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and six have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and a consensus target price of $40.22.

In related news, insider Steven G. Binder sold 12,000 shares of the business’s stock in a transaction dated Thursday, October 13th. The stock was sold at an average price of $37.98, for a total value of $455,760.00. Following the sale, the insider now directly owns 41,622 shares in the company, valued at approximately $1,580,803.56. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Brian Dean Johnson sold 3,500 shares of the business’s stock in a transaction dated Tuesday, September 27th. The shares were sold at an average price of $38.00, for a total value of $133,000.00. Following the completion of the sale, the vice president now owns 26,119 shares in the company, valued at $992,522. The disclosure for this sale can be found here. 3.54% of the stock is owned by corporate insiders.

A number of large investors have recently made changes to their positions in the stock. Van ECK Associates Corp boosted its stake in shares of Hormel Foods Corp. by 32.8% in the second quarter. Van ECK Associates Corp now owns 2,734 shares of the company’s stock valued at $100,000 after buying an additional 676 shares in the last quarter. Checchi Capital Advisers LLC boosted its stake in shares of Hormel Foods Corp. by 3.8% in the second quarter. Checchi Capital Advisers LLC now owns 2,762 shares of the company’s stock valued at $101,000 after buying an additional 100 shares in the last quarter. Global X Management Co. LLC boosted its stake in shares of Hormel Foods Corp. by 192.9% in the second quarter. Global X Management Co. LLC now owns 2,794 shares of the company’s stock valued at $102,000 after buying an additional 1,840 shares in the last quarter. Mizuho Asset Management Co. Ltd. boosted its stake in shares of Hormel Foods Corp. by 285.8% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 3,380 shares of the company’s stock valued at $124,000 after buying an additional 2,504 shares in the last quarter. Finally, Huntington National Bank boosted its stake in shares of Hormel Foods Corp. by 40.0% in the second quarter. Huntington National Bank now owns 3,500 shares of the company’s stock valued at $128,000 after buying an additional 1,000 shares in the last quarter. Institutional investors and hedge funds own 34.56% of the company’s stock.

The firm’s 50 day moving average is $37.05 and its 200 day moving average is $36.75. The company has a market cap of $18.64 billion, a PE ratio of 22.88 and a beta of 0.52.

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About Hormel Foods Corp.

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