Pilgrim’s Pride Corporation (NASDAQ: PPC) Loses -53.00% From High. Why That Could Change?


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Pilgrim’s Pride Corporation (NASDAQ:PPC). The institutional investor has increased its shareholding in the Consumer Defensive company by 1.94% to 5.32 million shares with purchase of 0.1 million shares. This fresh investment now brings its stake to 2.15% valued currently at $89.83 million. In addition, AQR Capital Management LLC raised its holdings by 0.48 million to 3.36 million shares. And Dimensional Fund Advisors LP has lifted its position by 1.32% or 20557.0 shares – to 1.58 million shares.

    With over 0.56 million Pilgrim’s Pride Corporation (PPC) shares trading Friday and a closing price of $15.82 on the day, the dollar volume was approximately $8.79 million. The shares have shown a negative weekly performance of -3.80% and its price on 07/24/20 lost nearly -1.65%. Currently, there are 249.35M common shares owned by the public and among those 50.10M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 8 analysts who have offered their price forecasts for PPC have a consensus price objective of $20.86. The analysts have set the share’s price value over the next 12 months at a high of $28.00 and a low of $18.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Pilgrim’s Pride Corporation stock is 2.40 for the next 12 months. The average price target is 37.15% above its last price level and an upside to the estimated low will see the stock gain 12.11% over that period. But an upside of 43.5% will see the stock hit the forecast high price target while mean target price for the stock is $20.00.

    Insiders at the company have transacted a total of 12 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 9 of these insider trades were purchases, accounting for 105,989 shares. Insider sales of the common stock occurred on 3 occasions, with total insider shares sold totaling 129,920 shares.

    The top 3 mutual fund holders in Pilgrim’s Pride Corporation are Stichting Pensioenfonds ABP (Glob, Vanguard Total Stock Market Index, and iShares Core S&P Mid Cap ETF. Stichting Pensioenfonds ABP (Glob owns 1.75 million shares of the company’s stock, all valued at over $29.56 million. The company bought an additional 0.12 million shares recently to bring their total holdings to about 0.71% of the shares outstanding. Vanguard Total Stock Market Index bought 2613.0 shares to see its total holdings expand to 1.41 million shares valued at over $23.78 million and representing 0.57% of the shares outstanding. iShares Core S&P Mid Cap ETF now owns shares totaling to 0.56% of the shares outstanding.

    Shares of Pilgrim’s Pride Corporation (NASDAQ: PPC) opened at $16.05, down -$0.04 from a prior closing price of $16.09. However, the script later closed the day at $15.82, down -1.65%. The company’s stock has a 5-day price change of -3.80% and -19.45% over the past three months. PPC shares are trading -51.63% year to date (YTD), with the 12-month market performance down to -41.82% lower. It has a 12-month low price of $15.55 and touched a high of $33.67 over the same period. Currently, 0.56 million shares have been traded, compared to an average intraday trading volume of 1.32 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -3.29%, -13.54%, and -34.58% respectively.

    Institutional ownership of Pilgrim’s Pride Corporation (NASDAQ: PPC) shares accounts for 20.30% of the company’s 249.35M shares outstanding. Mutual fund holders own 87.06%, while other institutional holders and individual stakeholders account for 9.08% and 10.81% respectively.

    It has a market capitalization of $3.90B and a beta (3y monthly) value of 0.96. The stock’s trailing 12-month PE ratio is 8.98, while the earnings-per-share (ttm) stands at $1.76. The company has a PEG of 0.44 and a Quick Ratio of 1.00 with the debt-to-equity ratio at 1.07. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.03% over the week and 3.28% over the month.

    Analysts forecast that Pilgrim’s Pride Corporation (PPC) will achieve an EPS of $0.1 for the current quarter, $0.27 for the next quarter and $1.88 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.05 while analysts give the company a high EPS estimate of $0.39. Comparatively, EPS for the current quarter was $0.69 a year ago. Earnings per share for the fiscal year are expected to increase by 66.20%, and -2.64% over the next financial year. EPS should grow at an annualized rate of 20.20% over the next five years, compared to -7.80% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 8 brokerage firm advisors rate Pilgrim’s Pride Corporation (PPC) as a “Moderate Buy” at a consensus score of 2.40. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 6 of the 8 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the PPC, a number of firms have released research notes about the stock. BMO Capital Markets stated their Market Perform rating for the stock in a research note on June 29, 2020, with the firm’s price target at $21. Barclays coverage for the Pilgrim’s Pride Corporation (PPC) stock in a research note released on June 29, 2020 offered a Equal Weight rating with a price target of $20. Stephens was of a view on June 03, 2020 that the stock is Equal-Weight, while Stephens gave the stock Overweight rating on May 11, 2020, issuing a price target of $20- $28. Stephens on their part issued Equal-Weight rating on January 16, 2020.


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