- BNP Paribas has reduced its price target for Hormel Foods (NYSE: HRL) to $23.00 from $26.00, suggesting a potential 16.20% upside from its current trading level.
- Despite a significant 50.50% decline in share price over five years, the dividend yield of Hormel Foods has increased to approximately 5.70% to 6.00%, highlighting its appeal as a dividend stock and its status as a Dividend King.
- Analysts, including Seeking Alpha, note that Hormel Foods is trading at its lowest level since 2013, indicating potential for valuation recovery despite persistent consumer and commodity cost pressures.
Hormel Foods, a leading consumer staples company, makes packaged foods, including Spam and SKIPPY peanut butter. BNP Paribas analyst Max Gumport lowers his price target for the stock to $23.00 from $26.00. At the time of the announcement, Hormel Foods trades at $19.80, leaving about 16.20% upside to the new target.
The lower target comes after a long decline in the share price. Hormel Foods shares are down 50.50% over five years. As highlighted by Motley Fool, the drop lifts the dividend yield to nearly 5.70% as of October 2. Dividend yield measures the annual dividend as a percentage of the share price, so it rises when the price falls. This makes Hormel Foods an interesting investment insight for dividend investors.
Hormel Foods trades at its lowest level since 2013, as highlighted by Seeking Alpha. Its stock analysis rates the stock a Buy and sees room for its valuation to recover, though consumer and commodity costs remain pressures. Hormel is a Dividend King, meaning it has raised its dividend for at least 50 straight years. The analysis puts its yield at about 6.00%.
In the latest quoted trading data, Hormel Foods stands at $19.78, down $0.10, or 0.50%. It trades between $19.77 and $20.14 during the day, compared with a one-year range of $19.42 to $26.60. Its market value is about $10.90 billion, with 879,954 shares traded on the NYSE.
