On October 8, 2023, it has been reported that Riverbridge Partners LLC has acquired a new stake in shares of Hormel Foods Co. This acquisition was made in the second quarter and was disclosed in their most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 4,980 shares of Hormel Foods’ stock, which is valued at approximately $200,000.
Hormel Foods recently released its quarterly earnings data on August 31st. For the quarter, the company reported earnings per share of $0.40, slightly lower than analysts’ consensus estimates of $0.41 by ($0.01). The return on equity for Hormel Foods stands at 12.20%, while its net margin is reported to be 7.20%. The company generated revenue of $2.96 billion for the quarter, falling short of analyst estimates that projected revenue to be around $3.04 billion. Comparing it to the same quarter in the previous year, Hormel Foods experienced a decline of 2.3% in revenue. Analysts who specialize in equities research anticipate that Hormel Foods Co. will post an EPS (earnings per share) of 1.64 for the current fiscal year.
Riverbridge Partners LLC’s acquisition of shares in Hormel Foods demonstrates confidence in the company’s market potential and long-term growth prospects. Despite missing analysts’ estimates by a small margin, Hormel Foods remains a strong player within the food industry with consistent profitability demonstrated through its return on equity and net margin figures.
It is worth noting that fluctuations in revenue are not uncommon within competitive industries like food production and distribution. Factors such as changes in consumer preferences or economic downturns can affect overall sales volume for companies operating within this sector. However, Hormel Foods continues to maintain stability amid these challenges.
Looking ahead, investors will closely monitor future announcements from Hormel Foods to gain further insights into the company’s strategic direction and initiatives. The acquisition of shares by Riverbridge Partners LLC underscores their confidence in Hormel Foods’ ability to navigate the dynamic food industry landscape successfully.
As always, it is important for investors to conduct their due diligence before making any investment decisions. Consulting with financial advisors and analyzing relevant market data can provide valuable insights into the potential risks and rewards associated with investing in stocks such as Hormel Foods Co.
Major Investors Make Moves in Hormel Foods as Stock Receives Mixed Ratings
As of the 1st quarter of this year, several major investors have decided to make changes to their positions in Hormel Foods, a leading food company. Newbridge Financial Services Group Inc. has significantly increased its stake in the company by 217.1%, now owning 650 shares valued at $26,000 after purchasing an additional 445 shares. Likewise, Ameritas Advisory Services LLC has acquired a new position in Hormel Foods, amounting to approximately $26,000.
Global Retirement Partners LLC has also shown interest in the company by increasing its holdings by 60.5% during the second quarter. They now own 878 shares valued at $35,000 after adding an extra 331 shares to their portfolio. Similarly, Exos TFP Holdings LLC has significantly boosted its position by 270.0% during the first quarter, now owning 962 shares worth $38,000 after purchasing an additional 702 shares. Lastly, Point72 Hong Kong Ltd has joined the list of investors by acquiring a new stake in Hormel Foods valued at around $41,000.
It is interesting to note that hedge funds and other institutional investors hold approximately 41.15% of Hormel Foods’ stock.
In a separate report released on Thursday, StockNews.com initiated coverage on shares of Hormel Foods and assigned them a “hold” rating. While one investment analyst gave the stock a sell rating, five others have suggested holding onto it. According to data from Bloomberg.com, the stock currently maintains an average rating of “hold” with an average target price of $43.71.
In another development surrounding Hormel Foods, Senior Vice President Pierre M. Lilly recently purchased 1,454 shares of the company’s stock on September 6th at an average price of $37.25 per share. This transaction amounted to a total cost of $54,161.50. Following this purchase, Lilly now owns 1,454 shares of Hormel Foods, worth approximately $54,161.50.
It is worth mentioning that the company has disclosed this acquisition in a document filed with the Securities & Exchange Commission, which can be accessed through the provided link. Insiders currently own 0.81% of Hormel Foods’ stock.
On Friday, shares of HRL stock opened at $36.87. Over the past year, the stock has fluctuated between a low of $35.96 and a high of $49.73. With a market capitalization of $20.15 billion and a price-to-earnings ratio of 22.90, Hormel Foods is positioned as an influential player in the food industry. The company has a debt-to-equity ratio of 0.31, indicating its strong financial position.
Hormel Foods boasts favorable liquidity ratios with a current ratio of 1.40 and a quick ratio of 0.65, signifying its ability to meet short-term financial obligations efficiently.
As for its moving averages, the stock has demonstrated a 50-day simple moving average of $38.97 and a 200-day simple moving average of $39.63.
In conclusion, Hormel Foods continues to attract attention from investors as several large investors have made notable changes to their positions in the company throughout this year’s quarters. While StockNews.com gives it a “hold” rating, there seems to be mixed opinions concerning future prospects for Hormel Foods’ stock, with one analyst suggesting selling and five others advising holding onto it. As always, caution is advised when considering investments in such volatile markets.