Hormel Foods: 5 Different Insiders Have Sold Shares During The Last 30 Days

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 |  About: Hormel Foods Corporation (HRL)
by: Markus Aarnio

Summary

Five insiders have sold Hormel Foods stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

Three of these five insiders decreased their holdings by more than 10%.

Hormel Foods Corporation (NYSE:HRL) processes, markets, and sells consumer-branded meat and food products.

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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%
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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
April 2014 12,313 0
March 2014 33,793 0
February 2014 9,968 0
January 2014 1,725 0
December 2013 24,377 0
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 52 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 20,000 0
February 2013 0 0
January 2013 33,947 0
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There have been 136,175 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Hormel Foods reported the fiscal 2014 first-quarter, which ended January 26, financial results on February 20 with the following highlights:

Revenue $2.2 billion
Net income $153.3 million
Cash $639.8 million
Debt $250.0 million
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The five insiders sold their shares after these results.

Outlook

Hormel Foods' 2014 earnings per share guidance range is $2.17 to $2.27.

Competition

Hormel Foods' competitors include Tyson Foods (NYSE:TSN), ConAgra Foods (NYSE:CAG), and General Mills (NYSE:GIS). Here is a table comparing these companies.

Company HRL TSN CAG GIS
Market Cap: 12.46B 14.31B 12.90B 31.43B
Employees: 19,700 115,000 34,840 41,000
Qtrly Rev Growth (yoy): 0.06 0.05 0.15 -0.01
Revenue: 8.88B 34.77B 17.90B 18.04B
Gross Margin: 0.17 0.07 0.21 0.36
EBITDA: 964.03M 2.00B 2.30B 3.50B
Operating Margin: 0.09 0.04 0.10 0.16
Net Income: 549.84M 925.00M 809.70M 1.79B
EPS: 2.04 2.35 1.92 2.73
P/E: 23.13 17.87 15.96 18.76
PEG (5 yr expected): 1.89 2.05 1.86 2.49
P/S: 1.40 0.41 0.72 1.74
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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
TSN 0 368,205
CAG 3,300 38,000
GIS 0 197,113
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General Mills has also seen intensive insider selling during the last 30 days.

Conclusion

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.