Exploring Hormel Foods Corporation (HRL) Investor Profile: Who’s Buying and Why?

Ever wondered who exactly is investing in Hormel Foods Corporation (HRL) and what's driving their decisions? Is it the big institutional players, individual investors, or perhaps company insiders who hold the largest stake? As of December 31, 2024, institutional investors held approximately 41.87% of the company's shares. But that's not the whole story. The Hormel Foundation, considered an insider, holds a significant 46.63% of the company, representing about 256.43 million shares valued at approximately $7.84 billion. With such a diverse ownership structure, what does this mean for the company's stability and future performance? Read on to explore the investor profile of Hormel Foods and uncover the motivations behind their investment choices.

Hormel Foods Corporation (HRL) Who Invests in [Company Name] and Why?

Understanding the investor profile of Hormel Foods Corporation (HRL) provides valuable insights into the market's perception of the company and its future prospects. Analyzing the composition of investors—ranging from retail individuals to large institutions—helps to explain the motivations behind their investment decisions and the strategies they employ.

Here's a breakdown of the key investor types in Hormel Foods Corporation:

• Company Controlled Foundation: The Hormel Foundation, Endowment Arm, stands out as the largest shareholder, owning approximately 47% of the company's shares. This significant control implies that the general public has a considerable influence on management and governance decisions. The Foundation's primary goal is to support local charities, aligning its interests with the long-term health and dividend growth of Hormel Foods.
• Institutional Investors: Institutions hold a substantial portion of Hormel Foods' shares. Recent data indicates institutional ownership around 43%. Major institutional holders include:
  • Vanguard Group Inc
  • BlackRock, Inc.
  • State Street Corp
  • Vanguard Total Stock Market Index Fund Investor Shares (VTSMX)
  • Vanguard 500 Index Fund Investor Shares (VFINX)
  These institutions often measure their performance against market indices, leading them to invest in companies included in those indices. Their investment suggests that analysts within these institutions view Hormel Foods favorably, though there's always a risk of 'crowded trades.'
• Retail Investors: Retail investors constitute a notable percentage of Hormel Foods' shareholders. According to recent data, approximately 69.96% of the company's stock is held by public companies and individual investors.
• Hedge Funds: While specific figures on hedge fund ownership may vary, hedge funds generally do not have a substantial investment in Hormel Foods.

The motivations driving investment in Hormel Foods Corporation are multifaceted:

• Dividend Reliability: Hormel Foods has a long history of consistent dividend increases, making it a Dividend King. As of April 2025, the trailing twelve-month (TTM) dividend payout is $1.16, with a dividend yield of approximately 4.06%. The company has increased its dividend for 53 consecutive years, appealing to income-focused investors.
• Market Position: Hormel Foods holds strong market positions with its well-known brands such as SPAM, Planters, Skippy, and Jennie-O. Many of these brands hold the number one or two market share in their respective categories.
• Strategic Priorities: Hormel Foods focuses on strategic priorities such as enhancing its retail business, reinforcing its leadership in foodservice, and expanding its global presence. These initiatives aim to drive long-term value for shareholders.
• Steady Financial Performance: Hormel Foods is well-positioned due to its disciplined financial strategy, reduced commodity exposure, and consistent operating cash flows. The company's commitment to long-term shareholder returns and growth is evident through its various initiatives.

Typical investment strategies observed among Hormel Foods investors include:

• Long-Term Holding: Many institutional and individual investors adopt a long-term holding strategy, attracted by the company's stability, dividend history, and market leadership.
• Value Investing: Some investors are drawn to Hormel Foods due to its valuation metrics. For instance, the stock's price-to-earnings (P/E) ratio and other valuation ratios may indicate whether the stock is undervalued relative to its earnings.
• Dividend Investing: Given Hormel Foods' status as a Dividend King, many investors focus on the company's dividend payouts and growth potential, seeking a steady income stream.

Recent trading activity and analyst ratings provide additional context:

• B of A Securities upgraded Hormel Foods' outlook from Underperform to Neutral.
• Analysts' opinions suggest a 12-month stock price forecast with an average rating of 'Buy' and a potential increase from the latest price.

Key financial statistics for Hormel Foods Corporation (2024 fiscal year):

For further insights into Hormel Foods' financial health, consider exploring: Breaking Down Hormel Foods Corporation (HRL) Financial Health: Key Insights for Investors

Hormel Foods Corporation (HRL) Institutional Ownership and Major Shareholders of Hormel Foods Corporation (HRL)

Understanding the institutional ownership of Hormel Foods Corporation (HRL) provides valuable insights into the company's stock price and overall strategy. Institutional investors, such as mutual funds, pension funds, and hedge funds, often hold significant stakes in publicly traded companies, and their investment decisions can have a substantial impact on market sentiment.

Here’s a detailed look at the top institutional investors in Hormel Foods, recent changes in ownership, and the potential impact these large investors have on the company.

Top Institutional Investors

Identifying the largest institutional shareholders in Hormel Foods offers a glimpse into who has the most influence on the company's stock performance. While the exact shareholdings can fluctuate, based on the latest available data, the following are among the top institutional investors:

• The Vanguard Group, Inc.: Vanguard is typically one of the largest shareholders in major corporations, known for its extensive index fund offerings and long-term investment strategies.
• BlackRock Fund Advisors: As another leading asset manager, BlackRock's investment decisions carry significant weight, and their holdings in Hormel Foods are closely watched by other investors.
• State Street Global Advisors: State Street is known for its diverse investment portfolios and substantial holdings in numerous publicly traded companies.
• Capital Research and Management Company: This firm often takes a long-term approach to investing and tends to hold significant positions in stable, established companies like Hormel Foods.
• Geode Capital Management, LLC: Geode Capital Management, LLC demonstrates a substantial position, reflecting its data-driven investment strategy and significant presence across various sectors.

These institutional investors manage billions of dollars in assets and their investment decisions are driven by extensive research and analysis. Their confidence in Hormel Foods can be a positive signal for other investors.

Changes in Ownership

Monitoring changes in institutional ownership can reveal shifts in sentiment towards Hormel Foods. Increases in institutional holdings may indicate a positive outlook, while decreases could suggest concerns about the company's future performance.

Recent trends in institutional ownership involve:

• Increased Stakes: Some institutions may have increased their positions in Hormel Foods, potentially due to strong financial results, positive industry trends, or confidence in the company's management.
• Decreased Stakes: Conversely, other institutions might have reduced their holdings, possibly driven by factors such as portfolio rebalancing, concerns about valuation, or shifting investment strategies.
• New Positions: The emergence of new institutional investors can also be a significant development, indicating fresh interest in Hormel Foods from previously uninvolved parties.

These changes are usually disclosed in 13F filings with the Securities and Exchange Commission (SEC), which provide a quarterly snapshot of institutional investment positions.

Impact of Institutional Investors

The substantial ownership stakes held by institutional investors can significantly influence Hormel Foods in several ways:

• Stock Price Stability: Large institutional holdings can provide a degree of stability to the stock price, as these investors tend to have a long-term focus and are less likely to engage in speculative trading.
• Corporate Governance: Institutional investors often play an active role in corporate governance, using their voting rights to influence company decisions on matters such as executive compensation, board composition, and strategic direction.
• Market Perception: The investment decisions of major institutions can shape market perception of Hormel Foods, influencing the behavior of other investors and affecting the company's access to capital.
• Strategic Influence: With large stakes, these investors can engage with company management to advocate for strategies they believe will enhance shareholder value, impacting the company’s operational and financial decisions.

In conclusion, institutional ownership is a critical aspect of Hormel Foods' investor profile. The actions and sentiments of these major shareholders can provide valuable insights into the company's prospects and influence its stock performance. Monitoring these trends is essential for anyone looking to make informed investment decisions regarding Hormel Foods.

For more insights into Hormel Foods' financial health, consider reading Breaking Down Hormel Foods Corporation (HRL) Financial Health: Key Insights for Investors.

Hormel Foods Corporation (HRL) Key Investors and Their Impact on [Company Name]

Understanding the investor profile of Hormel Foods Corporation (HRL) provides valuable insights into the company's stability, potential for growth, and susceptibility to market changes. Key investors can significantly influence company decisions and stock performance through their holdings and trading activities. Here’s an overview of notable investors in Hormel Foods as of fiscal year 2024.

Major Shareholders:

• The Hormel Foundation: This non-profit organization, established by the company's founder George Hormel and his son Jay, stands as the largest shareholder, owning approximately 46.63% of Hormel Foods' shares as of November 2024. This substantial ownership helps preserve the company's independence and long-term vision.
• Vanguard Group Inc: As of December 31, 2024, Vanguard holds a significant stake with 37,241,219 shares.
• BlackRock, Inc: BlackRock, Inc. holds 25,773,339 shares as of December 31, 2024.
• State Street Corporation: State Street Corp. owns 25,176,017 shares as of December 31, 2024.
• Invesco Ltd: Invesco Ltd. holds 7,843,207 shares as of December 31, 2024.
• Geode Capital Management, Llc: Geode Capital Management, Llc owns 7,461,100 shares as of December 31, 2024.
• Proshare Advisors Llc: Proshare Advisors Llc holds 6,072,682 shares as of December 31, 2024.

Institutional Ownership:

Institutional investors play a crucial role in Hormel Foods' shareholder base. As of April 2025, institutions hold approximately 43% of the company's shares. This significant level of institutional ownership suggests that analysts within these institutions have a positive outlook on the stock. However, it also carries the risk of a 'crowded trade,' where multiple institutions might sell shares simultaneously if the stock underperforms.

• As of December 31, 2024, the top institutional holders included:
  • Vanguard Group Inc: 37,241,219 shares
  • BlackRock, Inc: 25,773,339 shares
  • State Street Corp: 25,176,017 shares

Recent activity shows that 296 institutional investors increased their positions in HRL stock, while 287 decreased their holdings in the most recent quarter.

• Significant moves by institutional investors in Q4 2024:
  • UBS GROUP AG added 2,723,168 shares (+261.9%)
  • TWO SIGMA ADVISERS, LP added 1,819,100 shares (+496.3%)
  • BANK OF NEW YORK MELLON CORP added 1,175,087 shares (+67.1%)
  • STIFEL FINANCIAL CORP added 1,107,270 shares (+33.9%)
  • MAIRS & POWER INC removed 789,113 shares (-15.6%)
  • BALYASNY ASSET MANAGEMENT L.P. removed 740,096 shares (-100.0%)

Insider Trading Activity:

Insider trading activity can offer insights into how company executives view the stock's prospects. Recent transactions involving Hormel Foods insiders include:

• Over the past six months, there have been 2 insider trades: 1 purchase and 1 sale.
• STEVEN J LYKKEN (GROUP VICE PRESIDENT) purchased 4,904 shares for an estimated $159,245.
• ELSA A MURANO sold 4,500 shares for an estimated $136,800.

Hedge Fund Activity:

Hedge funds also actively trade Hormel Foods stock. Recent activity includes:

• Woodline Partners Lp: bought/sold shares for $547,531
• Gotham Asset Management Llc: bought/sold shares for $1,357,850
• Gardner Russo & Gardner Llc: bought/sold shares for $1,579,322

Investor Influence:

The Hormel Foundation's significant ownership stake provides a buffer against activist investors and allows the company to maintain its strategic direction. While activist investors can sometimes push for changes that maximize short-term profits, the Foundation’s presence ensures a focus on long-term value creation. However, it's worth noting that analysts have issued varied ratings on HRL stock. For example, Citigroup issued a 'Buy' rating on November 18, 2024, while Exane BNP Paribas issued an 'Underperform' rating on October 21, 2024.

Recent Analyst Ratings and Price Targets:

Analysts' perspectives on Hormel Foods vary, influencing market sentiment and stock valuation:

• Michael Lavery from Piper Sandler set a target price of $33.0 on December 5, 2024.
• Max Gumport from BNP Paribas set a target price of $28.0 on October 21, 2024.

Additional Resources:

For more insights into Hormel Foods' values and long-term objectives, explore: Mission Statement, Vision, & Core Values of Hormel Foods Corporation (HRL).

Hormel Foods Corporation (HRL) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions to Hormel Foods Corporation (HRL) is crucial for assessing the company's stability and future prospects. Recent market behavior, coupled with analyst perspectives, provides a comprehensive view of how major shareholders influence HRL's trajectory. The dynamics of these factors can significantly impact investment strategies and the overall perception of the company.

Investor sentiment toward Hormel Foods Corporation (HRL) appears mixed, reflecting both confidence in the company's long-term stability and concerns about short-term growth. Major shareholders, including institutional investors and company insiders, play a significant role in shaping this sentiment. Monitoring their trading activity and public statements can offer insights into their outlook on HRL's performance.

Recent market reactions to changes in ownership or large investor moves have been relatively muted, suggesting a degree of stability in how the market perceives Hormel Foods Corporation (HRL). However, significant shifts in institutional ownership or insider trading activity can sometimes trigger noticeable price fluctuations. Keeping an eye on these indicators is essential for understanding potential market reactions.

Analyst perspectives on the impact of key investors on Hormel Foods Corporation (HRL)'s future vary. Some analysts highlight the positive influence of long-term institutional investors who provide stability and support for the company's strategic initiatives. Others express concern about the potential for short-term pressures from activist investors seeking immediate returns. Understanding these diverse viewpoints is crucial for a balanced assessment.

Here's an overview of key aspects influencing investor sentiment and market impact:

• Institutional Ownership: The percentage of Hormel Foods Corporation (HRL)'s shares held by institutional investors.
• Insider Trading: Buying or selling of HRL shares by company executives and board members.
• Analyst Ratings: Recommendations from financial analysts regarding HRL's stock.
• Earnings Reports: Market reactions to HRL's quarterly and annual financial results.
• Dividend Yield: The annual dividend payment as a percentage of HRL's stock price.

To illustrate, consider the following hypothetical scenario:

Understanding these dynamics requires a multifaceted approach, combining analysis of ownership structures, market reactions, and expert opinions. By staying informed, investors can better navigate the complexities of Hormel Foods Corporation (HRL)'s market presence and make well-informed decisions. For more insights into Hormel Foods Corporation (HRL), you might find this resource helpful: Hormel Foods Corporation (HRL): History, Ownership, Mission, How It Works & Makes Money.