Hormel Foods Corporation (NYSE:HRL) has a beta of -0.07, a 12-month trailing P/E ratio of 29.25, and a growth ratio of 4.18. The stock’s Relative Strength Index (RSI) is 42.44, with weekly volatility at 1.65% and ATR at 0.84. The HRL stock’s 52-week price range has touched low of $43.45 and a $52.97 high. Its shares traded lower over the last trading session, losing -1.90% on 06/18/21. The shares fell to a low of $47.36 before closing at $47.42. Intraday shares traded counted 3.93 million, which was -87.82% lower than its 30-day average trading volume of 2.09M. HRL’s previous close was $48.34 while the outstanding shares total 540.20M.
Investors have identified the Packaged Foods company Hormel Foods Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $26.20 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Hormel Foods Corporation (HRL) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For HRL, the company has in raw cash 1.48 billion on their books with 9.33 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 3.51 billion total, with 1.18 billion as their total liabilities.
HRL were able to record 275.71 million as free cash flow during the 08/26/2021 quarter of the year, this saw their quarterly net cash flow reduce by -229.78 million. In cash movements, the company had a total of 361.26 million as operating cash flow.
Potential earnings growth for Hormel Foods Corporation (HRL)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/26/2021 quarter of the year, Hormel Foods Corporation recorded a total of 2.61 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 7.06% coming in sequential stages and their sales for the 08/26/2021 quarter increasing by 5.58%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 2.13 billion trying to sell their products during the last quarter, with the result yielding a gross income of 476.31 million. This allows shareholders to hold on to 540.20M with the recently reported earning now reading 0.42 cents per share. This is a figure that compared to analyst’s prediction for their 08/26/2021 (0.42 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.93 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on HRL sounds very interesting.
Is the stock of HRL attractive?
In related news, Director, NESTEGARD SUSAN K sold 16,470 shares of the company’s stock in a transaction that recorded on Jun 11. The sale was performed at an average price of 48.51, for a total value of 799,037. As the sale deal closes, the Group Vice President, Neufeldt Swen now sold 6,200 shares of the company’s stock, valued at 306,908. Also, Vice President and Treasurer, Jamison Gary sold 8,000 shares of the company’s stock in a deal that was recorded on Jun 02. The shares were price at an average price of 49.00 per share, with a total market value of 392,000. Following this completion of acquisition, the Executive V.P. & CFO, SHEEHAN JAMES N now holds 39,600 shares of the company’s stock, valued at 1,932,531. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.
0 out of 13 analysts covering the stock have rated it a Buy, while 10 have maintained a Hold recommendation on Hormel Foods Corporation. 1 analysts has assigned a Sell rating on the HRL stock. The 12-month mean consensus price target for the company’s shares has been set at $47.00.