Hormel Foods Corporation (HRL) Monthly Stock Report
Published on September 22, 2024
Company Overview
Hormel Foods Corporation (HRL), based in Austin, Minnesota, is a leading player in the packaged foods sector, excelling in the development, processing, and distribution of various meat products, nuts, and other food items. The company operates through three main segments: Retail, Foodservice, and International. Hormel’s expansive product lineup includes well-known brands such as HORMEL, SPAM, and JENNIE-O, catering to a diverse customer base both domestically and internationally. Established in 1891, HRL is recognized for its commitment to quality and variety, making it a dependable choice for retail and commercial clients within the Consumer Staples sector.
Market and Financial Performance
The packaged foods industry is currently under review, with a hold recommendation for Hormel Foods, indicating that investors should maintain their current positions without buying or selling at this time. The industry has a target high price of $36.00, suggesting potential upside for stocks if market conditions remain favorable. Hormel Foods reported total revenue of approximately $11.98 billion, indicating strong market presence and consumer demand. Despite this robust financial standing, the hold recommendation reflects a cautious approach from investors as they seek clarity on market dynamics.
HRL has 548,364,032 shares outstanding, with a short interest of 7,908,736 shares sold short, translating to a low short percent of float at about 1.45%. This metric suggests a general investor confidence in the stock’s performance, as lower short interest typically implies that shareholders do not foresee significant declines in the company’s stock value. The current stock price is $31.77, just below the 50-day average of $32.01, highlighting slight declines relative to past performance. Over the previous year, the stock fluctuated between a high of $39.25 and a low of $28.51, indicating notable volatility for prospective investors.
Analyst Insights and Future Outlook
The stock’s target high price is set at $36.00, with a target low of $28.00, creating a price range that suggests potential volatility. The calculated target mean price of $32.35 aligns closely with the target median price of $32.46, reflecting analysts’ consensus on the stock’s fair value. Seven analysts currently rate the stock, resulting in a mean recommendation score of 3.0, indicating a hold stance. While there is potential for growth, analysts believe that the stock is currently fairly valued, thus advising against immediate buying or selling.
In conclusion, while Hormel Foods Corporation demonstrates a solid financial footing and an optimistic outlook, investors are advised to remain cautious and observant of market trends before making any decisions regarding their positions in HRL.
| Metric | Value |
|---|---|
| Market Cap | $17.4b |
| Total Debt | $2.9b |
| Total Cash | $561.9m |
| Shares Outstanding | 548.4m |
| Float Shares | 290.0m |
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