Undoubtedly, Hormel Foods Corporation (NYSE:HRL) has been one of the most volatile stocks in the market in recent times, and the way it handled Wednesday’s volatility suggests the stock may be poised to rise heading into short-terms. The shares accumulated 0.06 points or 0.14 percent at $44.14 with a light trade volume of 2.79 million shares. After opening the session at $44.19, the shares went as high as $44.27 and as low as $43.565, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $23.7 billion and now has 536.45 million shares outstanding. Hormel Foods Corporation (HRL) stock has gained 8.4 percent of market value in 21 trading days.
HRL stock has a trailing 3-year beta of 0.13, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.64 a share in the trailing twelve months. The stock’s value has surged 21.3 percent year to date (YTD) against a rise of 40.13 percent in 12 month’s time. The company’s shares still trade -0.79 percent away from its 1-year high of $44.49 and 43.31 percent up from 52-week low of $30.80. The average consensus rating on the company is 2.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
Hormel Foods Corporation (HRL) will probably climb -16.18 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $50-month high price target. This represents a whopping 13.28 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $36, which represents a return potential of -18.44 percent when compared to the closing price of the stock of $44.14 on Wednesday, November 07. The lowest price target for the stock is $33 — slightly more than -25.24 percent from HRL’s current share price.
History has shown that shares in Hormel Foods Corporation have gone up on 19 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. Investors will get their next glimpse of HRL’s Q4 earnings on November 20. Analysts are forecasting revenue to climb 3 percent to $2.57B in the fiscal fourth quarter, while earnings are seen soaring by nearly 19.51 percent to $0.49 per share. It earned $0.39 per share, in line with the $0.39, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.36B, worse than the $2.38B analysts expected. Earnings are estimated to increase by -4.3 percent this year, -1.65 percent next year and continue to increase by 10.5 percent annually for the next 5 years.
Let’s take a look at some insider activity at Hormel Foods Corporation (NYSE:HRL) and see the pattern. The earliest insider trade took place on 10/05/2018. Myers Kevin L parted with a total of 2.73 thousand shares of company at average share price of $39.9. The total for the sales was set at $109.09 thousand. After this transaction, the Senior Vice President account balance stood at 15.95 thousand shares. The stock grew 10.48 percent since that insider sale. On 09/19/2018, Pippins Dakota A, Director, sold 1.75 thousand shares at a price per share of $39.59. This removed 69.28 thousand shares from the insider’s fortune and the stock saw a 11.34 percent rally in value since the news became public. This transaction left 91.8 thousand shares in the Director account.
On 09/17/2018, Group Vice President Brady Deanna T performed a sale transaction worth $1.97 million. This sale at $41.05 each has eliminated 48 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 7.38 percent increase since the transaction was reported. The insider now is left with 45.81 thousand shares remaining in the account. Crews Terrell K, who performs the Director job, sold 6.63 thousand shares for $278.92 thousand. The disposal occurred on 09/14/2018 was priced at $42.07 per share. The share price soared 4.78 percent since the reporting date. Crews Terrell K now left with a stake of 99.4 thousand HRL stock worth $4.39 million after the insider selling.
The stock is currently hovering around the first support level of $43.71. Below this, the next support is placed in the zone of $43.29. Till the time, the HRL stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 66.56 on daily chart, which may remain a cause for concern. If the price breaks below $43.29 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $44.42 mark may result into a pull-back move towards $44.7 level.
Shares of Hormel Foods Corporation (HRL) are trading at a P/E ratio of 26.87 times earnings reported for the past 12 months. The industry HRL operates in has an average P/E of 20.14. Its P/E ratio went as low as 19.34X and as high as 26.94 over the 5-year span.Further, it is sporting a 2.49 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.81. 20.7 percent is the gross profit margin for Hormel Foods Corporation and operating margin sits at 12.7 percent. Along with this, the net profit margin is 10.2 percent.