Yahoo Finance How Hormel Foods’ 2-for-1 Stock Split Affected Its Shares
Yesterday’s Consumer Pops and Drops: HRL, CAJ, GPK, SEE, and FLO
Price movement of Hormel Foods
Hormel Foods (HRL) has a market capitalization of $11.0 billion. HRL fell by 49.7% to close at $41.67 per share as of February 10, 2016. The stock’s price movements on a weekly, monthly, and year-to-date (or YTD) basis are -47.9%, -46.4%, and -47.1%, respectively.
Technically, the stock has broken its support and is trading below all of its moving averages. Currently, HRL is trading 46.8% below its 20-day moving average, 46.7% below its 50-day moving average, and 35.6% below its 200-day moving average.
The PowerShares DWA Consumer Staples Momentum ETF (PSL) invests 3.9% of its holdings in Hormel Foods. The ETF tracks an index of US consumer cyclical companies selected and weighted by price momentum. The YTD price movement of PSL is -6.9% as of February 9, 2016.
The PowerShares Dynamic Large Cap Growth ETF (PWB) invests 1.6% of its holdings in Hormel Foods. The ETF tracks an index that uses a multifactor selection methodology to select 50 large-cap stocks with growth characteristics.
The market capitalizations of Hormel Foods’ competitors are as follows:
Tyson Foods (TSN) — $22.4 billion
ConAgra Foods (CAG) — $17.5 billion
Hormel Foods’ two-for-one stock split
Hormel Foods implemented a two-for-one stock split on February 9, 2016. It issued an additional share per share of common stock to each of its shareholders on record as of January 26, 2016. The face value of the stock fell to $0.02 from $0.03 per share, and the authorized shares rose from 800 million to 1.6 billion.
The company has recalled 40 cases, or 450 total pounds, of single code–dated 15-ounce cans of Dinty Moore Beef Stew, due to extraneous materials in some of the cans, which were discovered during routine inspection activities.
Performance of Hormel Foods in 4Q15 and 2015
Hormel Foods reported 4Q15 net sales of $2,400.9 million, a fall of 5.6% compared to net sales of $2,543.8 million in 4Q14. Sales of its refrigerated foods, Jennie-O Turkey foods, specialty foods, and international segments fell by 5.1%, 17.6%, 2.8%, and 0.4%, respectively, and sales of its grocery products segment rose by 4.3% in 4Q15 compared to 4Q14.
Its net income and EPS (earnings per share) rose to $187.2 million and $0.69, respectively, in 4Q15, compared to $171.3 million and $0.63, respectively, in 4Q14.
2015 results
In its 2015 results, HRL reported net sales of $9,263.9 million, a fall of 0.56% YoY (year-over-year). The company’s net income and EPS rose to $686.1 million and $2.54, respectively, in 2015, compared to $602.7 million and $2.23, respectively, in 2014.
Meanwhile, its cash and cash equivalents rose by 3.9%, and its inventories rose by 5.8% in 2015. Its current ratio fell to 1.7 in 2015 compared to 2.2 in 2014.
The company has projected EPS in the range of $2.85–$2.95 for 2016.
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