Sanderson Farms (SAFM) Upgraded by BidaskClub to Strong-Buy

BidaskClub upgraded shares of Sanderson Farms (NASDAQ:SAFM) from a buy rating to a strong-buy rating in a research note published on Tuesday morning, BidAskClub reports.

Several other brokerages have also commented on SAFM. Goldman Sachs Group raised Sanderson Farms from a sell rating to a neutral rating and upped their price target for the company from $81.00 to $131.00 in a research note on Tuesday, April 23rd. ValuEngine raised Sanderson Farms from a buy rating to a strong-buy rating in a research note on Saturday, April 13th. Buckingham Research upped their price target on Sanderson Farms from $115.00 to $138.00 and gave the company a neutral rating in a research note on Thursday, April 11th. JPMorgan Chase & Co. raised Sanderson Farms from an underweight rating to a neutral rating and upped their price target for the company from $88.00 to $127.00 in a research note on Wednesday, March 13th. Finally, Jefferies Financial Group reaffirmed a sell rating and issued a $77.00 price target on shares of Sanderson Farms in a research note on Sunday, February 17th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating, one has given a buy rating and two have issued a strong buy rating to the stock. The stock has an average rating of Hold and an average price target of $117.89.

Shares of SAFM traded up $4.03 during trading hours on Tuesday, hitting $151.97. 350,981 shares of the stock were exchanged, compared to its average volume of 438,544. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.48 and a current ratio of 2.82. Sanderson Farms has a 12-month low of $93.98 and a 12-month high of $152.28. The stock has a market capitalization of $3.37 billion, a price-to-earnings ratio of 50.32 and a beta of 0.83.

Sanderson Farms (NASDAQ:SAFM) last released its quarterly earnings data on Tuesday, February 26th. The company reported ($0.82) earnings per share for the quarter, topping the Zacks’ consensus estimate of ($1.82) by $1.00. The company had revenue of $743.40 million for the quarter, compared to analyst estimates of $705.25 million. Sanderson Farms had a negative return on equity of 0.04% and a negative net margin of 0.24%. The firm’s revenue for the quarter was down 3.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.24 earnings per share. On average, analysts predict that Sanderson Farms will post 2.69 earnings per share for the current year.

The company also recently announced a quarterly dividend, which will be paid on Tuesday, May 21st. Investors of record on Tuesday, May 7th will be paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 0.84%. The ex-dividend date is Monday, May 6th. Sanderson Farms’s payout ratio is 42.38%.

In other Sanderson Farms news, insider Lampkin Butts sold 10,000 shares of the company’s stock in a transaction dated Friday, March 15th. The stock was sold at an average price of $127.82, for a total transaction of $1,278,200.00. Following the sale, the insider now owns 121,611 shares in the company, valued at approximately $15,544,318.02. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director John Bierbusse sold 677 shares of the company’s stock in a transaction dated Wednesday, February 27th. The stock was sold at an average price of $113.94, for a total value of $77,137.38. Following the sale, the director now owns 12,675 shares in the company, valued at approximately $1,444,189.50. The disclosure for this sale can be found here. 5.55% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently modified their holdings of the business. South Dakota Investment Council increased its holdings in shares of Sanderson Farms by 119.5% in the 1st quarter. South Dakota Investment Council now owns 9,440 shares of the company’s stock valued at $1,245,000 after acquiring an additional 5,140 shares during the last quarter. Victory Capital Management Inc. increased its holdings in shares of Sanderson Farms by 1.3% in the 1st quarter. Victory Capital Management Inc. now owns 1,018,542 shares of the company’s stock valued at $134,285,000 after acquiring an additional 12,947 shares during the last quarter. Texas Permanent School Fund increased its holdings in shares of Sanderson Farms by 0.7% in the 1st quarter. Texas Permanent School Fund now owns 13,238 shares of the company’s stock valued at $1,745,000 after acquiring an additional 86 shares during the last quarter. Moors & Cabot Inc. purchased a new position in shares of Sanderson Farms in the 1st quarter valued at about $422,000. Finally, Paragon Capital Management Ltd purchased a new position in shares of Sanderson Farms in the 1st quarter valued at about $238,000. Institutional investors own 99.52% of the company’s stock.

About Sanderson Farms

Sanderson Farms, Inc, an integrated poultry processing company, produces, processes, markets, and distributes fresh, frozen, and prepared chicken products in the United States. The company sells ice-packed, chill-packed, bulk-packed, and frozen chicken primarily under the Sanderson Farms brand name to retailers, distributors, and casual dining operators in the southeastern, southwestern, northeastern, and western United States, as well as to customers who resell frozen chicken into export markets.

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Analyst Recommendations for Sanderson Farms (NASDAQ:SAFM)

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