May 29, 2023 – The business world is rife with complex financial maneuvers and strategic investments. One such move that has caught the attention of market watchers is UBS Group AG’s increased stake in Pilgrim’s Pride Co. (NASDAQ:PPC). According to UBS Group AG’s recent filing with the Securities and Exchange Commission (SEC), it has raised its shares in PPC by a significant 278.9% percent.
At the end of the fourth quarter, the Swiss multinational investment bank now owns 202,079 shares of PPC’s stock- an increase of 148,750 shares from its previous holding. This new addition to UBS Group AG’s portfolio makes for a total ownership stake of roughly 0.09% at an approximate $4,795,000 valuation.
Pilgrim’s Pride Co., a popular food company based in Texas, made headlines on April 26th when it released its quarterly earnings data report. Despite weak revenue figures in comparison to market predictions ($4.17 billion versus expected $4.11 billion) as well as an overall decline of sales volume since last year, PPC managed to come out ahead of its own projected earnings per share (EPS). Against expectations of negative earnings – which averaged at ($0.01) on Wall Street – Pilgrim’s Pride posted positive EPS growth at $0.08 per share.
Such results have impressed many sell-side analysts who expect PPC to achieve impressive fiscal performance in the current year ahead with projected EPS hitting $1.07 per share.
But what does this all mean for both Pilgrim’s Pride and UBS Group AG? For starters, UBS’s increased PPC holdings supports analysts’ confidence in Pilgrim’s Pride ability to bounce back from declining profits despite challenges in their supply chain processes and increased competition from alternative protein producers.
As for UBS’s strategic maneuvering? It signals confidence on their part regarding long-term investment opportunities and positions them to lead other investors in the company’s success. Only time will tell how the market responds to these developments, but until then, it’s clear that both UBS Group AG and Pilgrim’s Pride are showing promising signs for future growth and stability.
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Institutional Investors Flock to Pilgrim’s Pride Co. in 2023
As of May 29th, 2023, Pilgrim’s Pride Co. is a company that has captured the attention of several hedge funds. Investors such as Herr Investment Group LLC and Swiss National Bank have purchased and sold large stakes in this poultry processing company over the last year.
Herr Investment Group LLC entered the market during the fourth quarter of last year, purchasing a brand new $7,044,000 stake in Pilgrim’s Pride. Similarly, Swiss National Bank upped its ante by 1.2% and now owns an additional 1,400 shares of the corporation valued at $2,738,000.
Arizona State Retirement System also increased its equity in the poultry processor by 3.3% during Q4 2022. After buying an extra 428 shares while they were available, their new total stands at owning just under $321k worth of Pilgrim’s Pride stock.
Duality Advisers LP jumped into the fray by purchasing an entirely fresh set of holdings in Pilgrim’s Pride valued at approximately $817k near the end of last year.
Lastly, South Dakota Investment Council upped their holdings by a whopping 62% during Q4 2022 as they bought an additional 65,684 shares for roughly $4 million worth – which means they now own a total of over $4 billion worth of stocks from this company alone.
All told institutional investors currently control around one sixth (16.81%) of all outstanding Pilgrim’s Pride stock.
It should come as no surprise that all these activities may have influenced PPC to open at $22.66 on Monday – especially considering that it’s largely due to these same investors purchasing and selling shares that caused PPC to reach its current state: with a market capitalization value near $5.36 billion and boasting a price-to-earnings ratio of just over eleven times earnings per share this past quarter alone; A PEG ratio of 3.57 and with a beta reading hovering around a bullish 0.97.
These numbers are evidence enough that this poultry processing firm is on the rise, but beyond just raw data there’s plenty more positive indicators at play: The business has a debt-to-equity ratio of 1.10, signaling it’s not over-leveraged. Plus both its current and quick ratios are favorably shaped – also pointing to Pilgrim’s Pride being generally fiscally sound – and their stock price, while currently trending downward (done primarily via profit-taking by investment behemoths) sporting an average fifty day moving value of $22.73 and a 200 day moving price averaging out at $23.97.
While the world continues turning for those who’ve turned their investments toward Pilgrim’s Pride Co., it seems nobody can predict what kind of profitability lies ahead – but given all these optimistic signs, fears of drastic declines seem far-fetched at the very least!
