Investors Purchase Large Volume of Put Options on Hormel Foods (NYSE:HRL)

Hormel Foods Corp (NYSE:HRL) saw some unusual options trading on Tuesday. Stock investors acquired 3,008 put options on the company. This is an increase of approximately 916% compared to the typical daily volume of 296 put options.

A number of equities research analysts recently weighed in on the company. Zacks Investment Research downgraded Hormel Foods from a “hold” rating to a “sell” rating and set a $43.00 price objective on the stock. in a research report on Friday, July 26th. ValuEngine downgraded Hormel Foods from a “buy” rating to a “hold” rating in a research report on Wednesday, July 24th. Stephens set a $37.00 price objective on Hormel Foods and gave the company a “hold” rating in a research report on Monday, August 12th. Edward Jones downgraded Hormel Foods from a “buy” rating to a “hold” rating in a research report on Wednesday, June 12th. Finally, Buckingham Research dropped their price objective on Hormel Foods from $38.00 to $35.00 and set a “neutral” rating on the stock in a research report on Friday, May 24th. Four research analysts have rated the stock with a sell rating, eight have assigned a hold rating and one has assigned a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average target price of $39.90.

In related news, VP James N. Sheehan sold 55,000 shares of the firm’s stock in a transaction dated Wednesday, June 12th. The stock was sold at an average price of $41.55, for a total transaction of $2,285,250.00. Following the sale, the vice president now owns 60,000 shares of the company’s stock, valued at $2,493,000. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Robert Nakasone sold 14,695 shares of the firm’s stock in a transaction dated Wednesday, June 5th. The shares were sold at an average price of $40.71, for a total value of $598,233.45. Following the sale, the director now directly owns 78,457 shares in the company, valued at approximately $3,193,984.47. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 87,695 shares of company stock worth $3,601,503. 1.11% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. raised its stake in shares of Hormel Foods by 1.6% in the second quarter. Vanguard Group Inc. now owns 33,959,615 shares of the company’s stock worth $1,376,721,000 after purchasing an additional 518,987 shares during the last quarter. BlackRock Inc. raised its stake in shares of Hormel Foods by 5.4% in 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. Geode Capital Management LLC raised its stake in shares of Hormel Foods by 16.4% in the fourth quarter. Geode Capital Management LLC now owns 4,248,495 shares of the company’s stock worth $181,055,000 after purchasing an additional 598,442 shares during the last quarter. Janus Henderson Group PLC raised its stake in shares of Hormel Foods by 9.4% in the second quarter. Janus Henderson Group PLC now owns 3,906,986 shares of the company’s stock worth $158,385,000 after purchasing an additional 334,243 shares during the last quarter. Finally, Northern Trust Corp raised its stake in shares of Hormel Foods by 2.5% in the second quarter. Northern Trust Corp now owns 3,653,388 shares of the company’s stock worth $148,109,000 after purchasing an additional 89,856 shares during the last quarter. 43.34% of the stock is owned by institutional investors and hedge funds.

Shares of NYSE HRL opened at $40.97 on Thursday. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.16 and a current ratio of 2.14. The company has a market cap of $22.20 billion, a PE ratio of 21.68, a P/E/G ratio of 3.20 and a beta of 0.11. The business has a 50-day simple moving average of $41.32 and a two-hundred day simple moving average of $41.50. Hormel Foods has a fifty-two week low of $36.25 and a fifty-two week high of $46.26.

Hormel Foods (NYSE:HRL) last issued its quarterly earnings results on Thursday, May 23rd. The company reported $0.46 earnings per share for the quarter, topping the consensus estimate of $0.45 by $0.01. The business had revenue of $2.34 billion during the quarter, compared to the consensus estimate of $2.37 billion. Hormel Foods had a return on equity of 17.31% and a net margin of 10.38%. The company’s quarterly revenue was up .6% on a year-over-year basis. During the same quarter last year, the company earned $0.44 earnings per share. On average, sell-side analysts predict that Hormel Foods will post 1.73 earnings per share for the current fiscal year.

Hormel Foods Company Profile

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.

Further Reading: What is the Quick Ratio?

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