Smithfield Foods (NASDAQ:SFD) Hits New 52-Week Low – Should You Sell?

Smithfield Foods, Inc. (NASDAQ:SFD)’s stock price hit a new 52-week low on Wednesday. The stock traded as low as $18.48 and last traded at $18.4950, with a volume of 1357706 shares changing hands. The stock had previously closed at $18.78.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on SFD. The Goldman Sachs Group reissued a “buy” rating and issued a $32.00 price objective on shares of Smithfield Foods in a research note on Wednesday, August 12th. Zacks Research downgraded shares of Smithfield Foods from a “hold” rating to a “strong sell” rating in a report on Thursday, August 13th. Barclays cut their price target on Smithfield Foods from $31.00 to $29.00 and set an “overweight” rating for the company in a research note on Wednesday, September 9th. Stephens initiated coverage on Smithfield Foods in a research report on Wednesday, September 30th. They issued an “equal weight” rating and a $22.00 price objective on the stock. Finally, Bank of America cut their target price on Smithfield Foods from $33.00 to $32.00 and set a “buy” rating for the company in a research report on Thursday, July 2nd. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $29.20.

Smithfield Foods Trading Down 1.5%

The company has a debt-to-equity ratio of 0.20, a current ratio of 2.56 and a quick ratio of 1.34. The stock has a 50-day moving average price of $21.80 and a two-hundred day moving average price of $24.70. The stock has a market cap of $7.28 billion, a PE ratio of 6.90 and a beta of -0.41.

Smithfield Foods (NASDAQ:SFD) last posted its earnings results on Tuesday, August 11th. The company reported $0.62 EPS for the quarter, topping analysts’ consensus estimates of $0.60 by $0.02. The company had revenue of $3.70 billion for the quarter. Smithfield Foods had a return on equity of 15.55% and a net margin of 6.84%.Smithfield Foods’s quarterly revenue was down 2.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.55 earnings per share. Sell-side analysts forecast that Smithfield Foods, Inc. will post 2.12 earnings per share for the current fiscal year.

Smithfield Foods Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Thursday, August 13th were paid a $0.3125 dividend. This represents a $1.25 dividend on an annualized basis and a dividend yield of 6.8%. The ex-dividend date of this dividend was Thursday, August 13th. Smithfield Foods’s dividend payout ratio (DPR) is presently 46.64%.

Institutional Investors Weigh In On Smithfield Foods

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Altshuler Shaham Ltd lifted its position in Smithfield Foods by 36.8% in the first quarter. Altshuler Shaham Ltd now owns 1,524 shares of the company’s stock worth $43,000 after buying an additional 410 shares during the last quarter. Capital Financial Group Inc. Co. ADV increased its position in Smithfield Foods by 5.8% during the first quarter. Capital Financial Group Inc. Co. ADV now owns 10,863 shares of the company’s stock valued at $304,000 after acquiring an additional 600 shares during the last quarter. Group One Trading LLC purchased a new stake in shares of Smithfield Foods in the first quarter valued at $31,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Smithfield Foods in the second quarter valued at $29,000. Finally, Silver Oak Securities Incorporated lifted its holdings in shares of Smithfield Foods by 5.5% in the 1st quarter. Silver Oak Securities Incorporated now owns 25,767 shares of the company’s stock worth $721,000 after acquiring an additional 1,333 shares during the last quarter.

About Smithfield Foods

Smithfield Foods, Inc is a vertically integrated food company focused on pork production and packaged meats. Its operations include raising livestock, processing and packaging pork, and distributing fresh pork and prepared foods. The company’s products include bacon, ham, sausage, hot dogs, lunch meats, fresh pork cuts and other refrigerated and shelf-stable meat products.

Smithfield markets products under brands including Smithfield, Eckrich, Farmland, Nathan’s Famous and Healthy Ones, as well as private-label offerings for retailers and food-service customers.