Have Hormel Foods Corporation (NYSE:HRL) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
September 04, 2020
NYSE:HRL

Anyone interested in Hormel Foods Corporation (NYSE:HRL) should probably be aware that a company insider, Gary Jamison, recently divested US$353k worth of shares in the company, at an average price of US$50.69 each. The eyebrow raising move amounted to a reduction of 21% in their holding.

View our latest analysis for Hormel Foods

Hormel Foods Insider Transactions Over The Last Year

The Senior VP of External Affairs & General Counsel, Lori Marco, made the biggest insider sale in the last 12 months. That single transaction was for US$496k worth of shares at a price of US$45.08 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$50.99. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 21% of Lori Marco's stake.

In the last year Hormel Foods insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:HRL Insider Trading Volume September 4th 2020

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Hormel Foods Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Hormel Foods insiders own 0.4% of the company, currently worth about US$108m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Hormel Foods Insiders?

Insiders haven't bought Hormel Foods stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Hormel Foods has 1 warning sign and it would be unwise to ignore it.

But note: Hormel Foods may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Promoted
When trading Hormel Foods or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.


This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record. Learn more about the team behind Simply Wall St.