Pilgrim’s Pride Co. (NASDAQ:PPC) shares reached a new 52-week low during mid-day trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $16.01 and last traded at $18.76, with a volume of 112166 shares trading hands. The stock had previously closed at $17.66.
The company reported $0.21 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.55 by ($0.34). The firm had revenue of $2.70 billion during the quarter, compared to analysts’ expectations of $2.72 billion. Pilgrim’s Pride had a net margin of 5.33% and a return on equity of 34.12%. Pilgrim’s Pride’s revenue for the quarter was down 3.4% on a year-over-year basis. During the same quarter last year, the company posted $0.98 earnings per share.
Pilgrim’s Pride declared that its board has initiated a share buyback plan on Wednesday, October 31st that permits the company to repurchase $200.00 million in outstanding shares. This repurchase authorization permits the company to purchase up to 4.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s management believes its shares are undervalued.
PPC has been the topic of a number of recent research reports. Barclays initiated coverage on shares of Pilgrim’s Pride in a report on Monday, July 16th. They issued an “overweight” rating and a $27.00 target price on the stock. BidaskClub upgraded shares of Pilgrim’s Pride from a “strong sell” rating to a “sell” rating in a report on Saturday, August 18th. BMO Capital Markets reduced their target price on shares of Pilgrim’s Pride to $20.00 and set a “market perform” rating on the stock in a report on Friday, August 3rd. Mizuho set a $27.00 target price on shares of Pilgrim’s Pride and gave the company a “buy” rating in a report on Wednesday, July 25th. Finally, Zacks Investment Research lowered shares of Pilgrim’s Pride from a “hold” rating to a “strong sell” rating in a report on Monday, July 16th. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating and three have given a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus target price of $25.67.
In related news, Director Michael L. Cooper acquired 2,500 shares of the business’s stock in a transaction dated Thursday, August 9th. The shares were acquired at an average cost of $17.36 per share, for a total transaction of $43,400.00. Following the acquisition, the director now directly owns 7,771 shares in the company, valued at approximately $134,904.56. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 78.81% of the company’s stock.
Several hedge funds have recently made changes to their positions in the company. LSV Asset Management lifted its holdings in shares of Pilgrim’s Pride by 0.9% during the 2nd quarter. LSV Asset Management now owns 10,655,398 shares of the company’s stock worth $214,493,000 after acquiring an additional 100,132 shares during the period. Millennium Management LLC lifted its holdings in shares of Pilgrim’s Pride by 33.4% during the 2nd quarter. Millennium Management LLC now owns 3,547,393 shares of the company’s stock worth $71,409,000 after acquiring an additional 888,156 shares during the period. BlackRock Inc. lifted its holdings in shares of Pilgrim’s Pride by 18.5% during the 2nd quarter. BlackRock Inc. now owns 3,148,493 shares of the company’s stock worth $63,379,000 after acquiring an additional 490,930 shares during the period. First Trust Advisors LP lifted its holdings in shares of Pilgrim’s Pride by 43.2% during the 3rd quarter. First Trust Advisors LP now owns 1,216,469 shares of the company’s stock worth $22,006,000 after acquiring an additional 366,890 shares during the period. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of Pilgrim’s Pride by 2.0% during the 2nd quarter. Dimensional Fund Advisors LP now owns 982,369 shares of the company’s stock worth $19,776,000 after acquiring an additional 18,800 shares during the period. Institutional investors and hedge funds own 20.20% of the company’s stock.
The stock has a market capitalization of $4.47 billion, a PE ratio of 6.48 and a beta of -0.02. The company has a debt-to-equity ratio of 1.26, a quick ratio of 1.01 and a current ratio of 1.87.
Pilgrim’s Pride Company Profile (NASDAQ:PPC)
Pilgrim's Pride Corporation engages in the production, processing, marketing, and distribution of fresh, frozen, and value-added chicken products in the United States, the United Kingdom, Europe, and Mexico. The company offers fresh chicken products, including pre-marinated or non-marinated refrigerated (nonfrozen) whole or cut-up chicken; and prepackaged case-ready chicken, such as whole chickens and chicken parts.
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