In a recent transaction, Mark A. Coffey, Group Vice President of Hormel Foods Corp (NYSE:HRL), sold shares of the company's stock, resulting in a total sale value of approximately $539,055. The shares were sold at a weighted average price ranging from $35.00 to $35.025 per share. On the same day, Coffey also acquired $406,252 worth of Hormel Foods stock at a price of $26.38 per share.
The transactions took place on March 28, 2024, and were disclosed in a Form 4 filing with the Securities and Exchange Commission. Following the sale, Coffey's direct holdings in Hormel Foods decreased to 68,029.094 shares. Additionally, Coffey has indirect holdings of 1,808.461 shares through a 401(k) Plan and 9,684.503 shares through a JEPST Plan.
The sale of 15,400 shares by Coffey was part of a larger trading plan involving multiple transactions. The exact number of shares sold at each price within the range has not been specified, but Coffey has agreed to provide full information regarding the individual sales upon request by the SEC, the issuer, or any security holder of the issuer.
The same day, Coffey exercised options to acquire an equivalent number of shares, 15,400, at a set price, which is a routine financial move for executives managing their stock-based compensation. These options had vested in annual installments since December 2, 2015.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on their company's stock value. The recent activities by Coffey at Hormel Foods will likely be of interest to current and potential shareholders as they assess the company's performance and insider confidence.
InvestingPro Insights
In light of the recent insider transactions at Hormel Foods Corp (NYSE:HRL), it's useful to consider the company's financial health and performance metrics. Hormel Foods, with a market capitalization of $19.16 billion and a price-to-earnings (P/E) ratio standing at 24.11, reflects a substantial valuation in the food products industry. The adjusted P/E ratio for the last twelve months as of Q1 2024 slightly lowers to 23.48, indicating a nuanced adjustment in the company's earnings valuation.
An InvestingPro Tip that stands out for Hormel Foods is its impressive track record of raising its dividend for 31 consecutive years, which is a testament to the company's commitment to returning value to shareholders. This is further supported by the fact that Hormel has maintained dividend payments for 54 consecutive years, a remarkable streak that could be appealing to income-focused investors. For those interested in dividend reliability and growth, these aspects of Hormel's financials are particularly noteworthy.
Despite a slight decline in revenue growth over the last twelve months, down by 2.01%, the company's gross profit margin has been maintained at 16.58%. This suggests that while top-line growth has been challenged, Hormel has managed to keep a consistent level of profitability in terms of gross income. Additionally, the dividend yield as of the most recent data point stands at 3.24%, coupled with a dividend growth of 2.73% over the last twelve months, reinforcing the company's appeal to dividend investors.
For those looking to delve deeper into Hormel Foods' financials and insider transactions, there are additional InvestingPro Tips available. In total, there are 9 additional tips listed on InvestingPro for Hormel Foods, which can be accessed at: https://www.investing.com/pro/HRL. These tips provide deeper insights into the company's financial health and future outlook.
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