Hormel Foods Sees Unusually Large Options Volume (NYSE:HRL)

Hormel Foods Corp (NYSE:HRL) saw unusually large options trading on Wednesday. Stock investors purchased 3,711 call options on the company. This represents an increase of approximately 1,018% compared to the typical volume of 332 call options.

Shares of HRL stock opened at $42.98 on Friday. The stock has a 50 day simple moving average of $41.90 and a 200 day simple moving average of $41.47. The company has a current ratio of 2.09, a quick ratio of 1.06 and a debt-to-equity ratio of 0.04. Hormel Foods has a 1 year low of $37.00 and a 1 year high of $46.26. The stock has a market cap of $23.42 billion, a P/E ratio of 22.74, a price-to-earnings-growth ratio of 3.34 and a beta of 0.06.

Hormel Foods (NYSE:HRL) last released its earnings results on Thursday, August 22nd. The company reported $0.37 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.02. Hormel Foods had a return on equity of 16.75% and a net margin of 10.34%. The firm had revenue of $2.29 billion during the quarter, compared to analysts’ expectations of $2.29 billion. During the same period in the prior year, the company earned $0.39 earnings per share. The company’s quarterly revenue was down 2.9% on a year-over-year basis. Analysts forecast that Hormel Foods will post 1.74 EPS for the current year.

Several equities research analysts recently issued reports on HRL shares. ValuEngine cut Hormel Foods from a “buy” rating to a “hold” rating in a research note on Wednesday, July 24th. Zacks Investment Research upgraded Hormel Foods from a “sell” rating to a “hold” rating and set a $45.00 price target for the company in a research note on Tuesday, August 27th. Buckingham Research cut their price target on Hormel Foods from $38.00 to $35.00 and set a “neutral” rating for the company in a research note on Friday, May 24th. Edward Jones cut Hormel Foods from a “buy” rating to a “hold” rating in a research note on Wednesday, June 12th. Finally, Stephens set a $37.00 price target on Hormel Foods and gave the company a “hold” rating in a research note on Monday, August 12th. Three research analysts have rated the stock with a sell rating, nine have issued a hold rating and one has issued a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus target price of $40.10.

In other news, Director Terrell K. Crews sold 9,046 shares of the business’s stock in a transaction that occurred on Tuesday, August 27th. The stock was sold at an average price of $42.35, for a total transaction of $383,098.10. Following the completion of the sale, the director now owns 113,305 shares in the company, valued at $4,798,466.75. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, SVP Kevin L. Myers sold 2,045 shares of the business’s stock in a transaction that occurred on Friday, August 30th. The stock was sold at an average price of $42.80, for a total value of $87,526.00. Following the sale, the senior vice president now owns 13,881 shares of the company’s stock, valued at approximately $594,106.80. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 39,768 shares of company stock valued at $1,696,629. Corporate insiders own 1.11% of the company’s stock.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in HRL. Janus Henderson Group PLC lifted its stake in Hormel Foods by 75.5% during the first quarter. Janus Henderson Group PLC now owns 3,572,743 shares of the company’s stock worth $159,916,000 after purchasing an additional 1,536,467 shares during the last quarter. Nuveen Asset Management LLC bought a new stake in Hormel Foods during the second quarter worth $52,592,000. BlackRock Inc. lifted its stake in Hormel Foods by 5.4% during the second quarter. BlackRock Inc. now owns 25,080,604 shares of the company’s stock worth $1,016,768,000 after purchasing an additional 1,287,994 shares during the last quarter. Robeco Institutional Asset Management B.V. lifted its stake in Hormel Foods by 464.3% during the first quarter. Robeco Institutional Asset Management B.V. now owns 1,424,428 shares of the company’s stock worth $63,753,000 after purchasing an additional 1,172,020 shares during the last quarter. Finally, First Trust Advisors LP lifted its stake in Hormel Foods by 389.5% during the second quarter. First Trust Advisors LP now owns 1,207,807 shares of the company’s stock worth $48,964,000 after purchasing an additional 961,066 shares during the last quarter. Hedge funds and other institutional investors own 44.37% of the company’s stock.

About Hormel Foods

Hormel Foods Corporation produces and markets various meat and food products in the United States and internationally. The company operates through five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other. It offers various perishable meat products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons; and shelf-stable products, such as canned luncheon meats, peanut butters, chilies, shelf-stable microwaveable meals, hashes, stews, meat spreads, flour and corn tortillas, salsas, tortilla chips, and other products.

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