Smithfield Foods (NASDAQ:SFD) Reaches New 1-Year High – Still a Buy?

Smithfield Foods, Inc. (NASDAQ:SFD)’s share price reached a new 52-week high on Wednesday . The company traded as high as $28.02 and last traded at $27.97, with a volume of 3277592 shares traded. The stock had previously closed at $27.09.

Wall Street Analyst Weigh In

Several research analysts have issued reports on SFD shares. Morgan Stanley boosted their target price on Smithfield Foods from $29.00 to $31.00 and gave the company an “overweight” rating in a research report on Wednesday, March 25th. Zacks Research upgraded Smithfield Foods from a “hold” rating to a “strong-buy” rating in a report on Wednesday, March 25th. Weiss Ratings raised Smithfield Foods from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, March 25th. Finally, Wall Street Zen upgraded Smithfield Foods from a “hold” rating to a “buy” rating in a report on Sunday, March 29th. One analyst has rated the stock with a Strong Buy rating and five have assigned a Buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Buy” and an average target price of $29.38.

Smithfield Foods Stock Performance

The business’s fifty day moving average is $24.62 and its two-hundred day moving average is $23.15. The company has a market cap of $11.16 billion, a P/E ratio of 11.30 and a beta of -0.33.

Smithfield Foods (NASDAQ:SFD) last released its quarterly earnings data on Tuesday, March 24th. The company reported $0.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.67 by $0.16. The company had revenue of $4.23 billion during the quarter, compared to analysts’ expectations of $4.19 billion. Smithfield Foods’s quarterly revenue was up 7.0% on a year-over-year basis. During the same period last year, the firm earned $0.52 earnings per share.

Smithfield Foods Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, April 21st. Investors of record on Tuesday, April 7th will be issued a $0.3125 dividend. The ex-dividend date is Tuesday, April 7th. This is a positive change from Smithfield Foods’s previous quarterly dividend of $0.25. This represents a $1.25 dividend on an annualized basis and a dividend yield of 4.4%. Smithfield Foods’s dividend payout ratio (DPR) is presently 39.84%.

Institutional Investors Weigh In On Smithfield Foods

A number of institutional investors and hedge funds have recently bought and sold shares of SFD. Fortress Investment Group LLC lifted its stake in Smithfield Foods by 110.3% in the third quarter. Fortress Investment Group LLC now owns 201,055 shares of the company’s stock worth $4,721,000 after acquiring an additional 105,464 shares during the period. Monashee Investment Management LLC purchased a new position in Smithfield Foods during the 3rd quarter valued at about $4,226,000. Game Creek Capital LP bought a new stake in shares of Smithfield Foods in the 3rd quarter valued at about $1,849,000. CWA Asset Management Group LLC bought a new stake in shares of Smithfield Foods in the 4th quarter valued at about $595,000. Finally, ING Groep NV lifted its position in shares of Smithfield Foods by 54.1% in the 3rd quarter. ING Groep NV now owns 329,500 shares of the company’s stock worth $7,737,000 after purchasing an additional 115,700 shares during the period.

About Smithfield Foods

Smithfield Foods, Inc (NASDAQ: SFD) is one of the world’s largest pork processors and hog producers. Founded in 1936 in Smithfield, Virginia, the company has grown from a regional ham producer into a fully integrated food company offering a broad range of fresh pork, value-added meats and prepared foods. Its product portfolio includes bacon, ham, sausage, ribs and deli meats marketed under well-known brands such as Smithfield®, Nathan’s Famous® and Eckrich®.

Smithfield operates a network of hog production facilities, processing plants and distribution centers across the United States, Europe and Latin America.