Unusual options trading activity was reported for Hormel Foods Corporation (NYSE: HRL) on Thursday, with stock traders acquiring 5,653 call options. This figure marks an increase of 84% compared to the average daily volume of 3,069 call options. The spike in trading activity raises questions about investor sentiment towards the company.
Several institutional investors have made adjustments to their holdings in Hormel Foods recently. Natixis Advisors LLC increased its stake by 10.8% in the first quarter, acquiring an additional 7,534 shares to reach a total of 77,072 shares valued at approximately $2.39 million. Similarly, Jefferies Financial Group Inc. entered a new position in Hormel Foods worth around $494,000. PNC Financial Services Group Inc. also raised its holdings by 6.3%, bringing its total to 72,121 shares, valued at $2.23 million. Furthermore, ING Groep NV boosted its stake by 34.9%, acquiring 12,949 additional shares to reach 50,069 shares valued at about $1.55 million. Finally, iA Global Asset Management Inc. purchased a new stake during the same period valued at $1.38 million. Currently, institutional investors hold 40.99% of Hormel Foods’ stock.
Analysts have varied perspectives on Hormel Foods’ future. Weiss Ratings reaffirmed a “sell (d+)” rating in a report dated October 8, while Piper Sandler reduced its target price from $26.00 to $25.00, maintaining a “neutral” stance on the stock. JPMorgan Chase & Co. adjusted its price objective down from $30.00 to $27.00, assigning an “overweight” rating. Meanwhile, The Goldman Sachs Group set a target of $27.00 with a “buy” recommendation. Zacks Research downgraded the stock from “hold” to “strong sell” on August 29. Overall, three investment analysts rated the stock as a Buy, five as Hold, and two as Sell, resulting in a consensus rating of “Hold” with a target price of $28.86, according to MarketBeat.com.
As trading progressed on Thursday, Hormel Foods shares rose by 2.4%, reaching $23.84. The trading volume for the day was 3,706,961 shares, slightly above the average volume of 3,672,685 shares. The stock has a market capitalization of $13.11 billion, with a price-to-earnings (P/E) ratio of 17.38. Hormel Foods has experienced a one-year low of $21.03 and a high of $33.80.
In its latest earnings report released on December 4, Hormel Foods reported earnings per share (EPS) of $0.32, surpassing analysts’ expectations of $0.30 by $0.02. The company recorded revenue of $3.19 billion for the quarter, slightly below the consensus estimate of $3.24 billion. Hormel Foods achieved a return on equity of 10.06% and a net margin of 6.26%. Notably, quarterly revenue rose by 1.5% year-over-year.
Hormel Foods also announced an increase in its quarterly dividend, which is set to be paid on February 17, 2026. Shareholders of record on January 12 will receive a dividend of $0.2925 per share, which represents an annualized dividend of $1.17 and a yield of 4.9%. This marks an increase from the previous quarterly dividend of $0.29. The company’s current payout ratio stands at 85.40%.
Founded in 1891, Hormel Foods develops, processes, and distributes a variety of food products, including meats, nuts, and refrigerated meal solutions, serving both retail and commercial customers in the United States and internationally. The company operates through three primary segments: Retail, Foodservice, and International.
