Hormel Foods Corporation (NYSE:HRL) processes, markets, and sells consumer-branded meat and food products.
Insider selling during the last 30 days
Here is a table of Hormel Foods' insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Dakota Pippins||Director||April 9||3,128||No||47,870 shares||6.1%|
|James Splinter||Group VP||April 2||9,185||No||44,153 shares + 12,000 options||14.1%|
|James Snee||Group VP||March 31||3,194||No||25,542 shares||11.1%|
|Larry Vorpahl||Group VP||March 28-31||7,000||No||112,720 shares||5.8%|
|David Juhlke||VP||March 17||21,920||No||31,527 shares||41.0%|
There have been 44,427 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of Hormel Foods' insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 136,175 shares sold, and there have been zero shares purchased by insiders since January 2013.
Hormel Foods reported the fiscal 2014 first-quarter, which ended January 26, financial results on February 20 with the following highlights:
|Net income||$153.3 million|
The five insiders sold their shares after these results.
Hormel Foods' 2014 earnings per share guidance range is $2.17 to $2.27.
|Qtrly Rev Growth (yoy):||0.06||0.05||0.15||-0.01|
|PEG (5 yr expected):||1.89||2.05||1.86||2.49|
Hormel Foods has the highest P/E ratio among these four companies.
Here is a table of these competitors' insider activities this year.
|Company||Insider buying / shares||Insider selling / shares|
General Mills has also seen intensive insider selling during the last 30 days.
There have been five different insiders selling Hormel Foods, and there have not been any insiders buying Hormel Foods during the last 30 days. Three of these five insiders decreased their holdings by more than 10%. Hormel Foods has an insider ownership of 49.03%.
Before going short Hormel Foods, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are a relatively high P/E ratio, and the intensive insider-selling activity.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.