Market Analysts see Pilgrim’s Pride Corporation [PPC] gaining to $21. Time to buy?

Pilgrim’s Pride Corporation [NASDAQ: PPC] gained 5.71% or 0.89 points to close at $16.57 with a heavy trading volume of 2010594 shares. The company report on October 14, 2020 that Pilgrim’s Announces Agreement with DOJ Antitrust Division.

Pilgrim’s Pride Corporation (NASDAQ: PPC) today announced that it has entered into a plea agreement with the United States Department of Justice Antitrust Division in respect to its investigation into the sales of broiler chicken products in the United States. In the plea agreement, which is subject to the approval of the United States District Court of Colorado, Pilgrim’s and the Antitrust Division agreed to a fine of $110,524,140 for restraint of competition that affected three contracts for the sale of chicken products to one customer in the United States. The agreement does not recommend a monitor, any restitution or probationary period, and provides that the Antitrust Division will bring no further charges against Pilgrim’s in this matter, provided the company complies with the terms and provisions of the agreement. Pilgrim’s expects to record the fine as a miscellaneous expense in its financial statements in the third quarter of 2020.

“Pilgrim’s is committed to fair and honest competition in compliance with U.S. antitrust laws,” said Fabio Sandri, Pilgrim’s CEO. “We are encouraged that today’s agreement concludes the Antitrust Division’s investigation into Pilgrim’s, providing certainty regarding this matter to our team members, suppliers, customers and shareholders.”.

It opened the trading session at $16.20, the shares rose to $16.775 and dropped to $16.15, the range by which the price of stock traded the whole day. The daily chart for PPC points out that the company has recorded -14.87% loss over the past six months. However, it is still -17.85% lower than its most recent low trading price.

If we look at the average trading volume of 923.99K shares, PPC reached to a volume of 2010594 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Pilgrim’s Pride Corporation [PPC]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PPC shares is $19.20 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PPC stock is a recommendation set at 2.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BMO Capital Markets have made an estimate for Pilgrim’s Pride Corporation shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on June 29, 2020. The new note on the price target was released on June 29, 2020, representing the official price target for Pilgrim’s Pride Corporation stock. On May 11, 2020, analysts increased their price target for PPC shares from 20 to 28.

The Average True Range (ATR) for Pilgrim’s Pride Corporation is set at 0.57, with the Price to Sales ratio for PPC stock in the period of the last 12 months amounting to 0.35. The Price to Book ratio for the last quarter was 1.73, with the Price to Cash per share for the same quarter was set at 2.03. Price to Free Cash Flow for PPC in the course of the last twelve months was 48.51 with Quick ratio for the last quarter at 1.00.

Trading performance analysis for PPC stock

Pilgrim’s Pride Corporation [PPC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.82. With this latest performance, PPC shares dropped by -2.82% in over the last four-week period, additionally sinking by -14.87% over the last 6 months – not to mention a drop of -45.26% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PPC stock in for the last two-week period is set at 60.69, with the RSI for the last a single of trading hit 66.22, and the three-weeks RSI is set at 56.44 for Pilgrim’s Pride Corporation [PPC]. The present Moving Average for the last 50 days of trading for this stock 15.87, while it was recorded at 15.83 for the last single week of trading, and 19.76 for the last 200 days.

Pilgrim’s Pride Corporation [PPC]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Pilgrim’s Pride Corporation [PPC] shares currently have an operating margin of +6.32 and a Gross Margin at +9.65. Pilgrim’s Pride Corporation’s Net Margin is presently recorded at +4.00.

Return on Total Capital for PPC is now 15.20, given the latest momentum, and Return on Invested Capital for the company is 9.76. Return on Equity for this stock inclined to 20.10, with Return on Assets sitting at 7.00. When it comes to the capital structure of this company, Pilgrim’s Pride Corporation [PPC] has a Total Debt to Total Equity ratio set at 103.10. Additionally, PPC Total Debt to Total Capital is recorded at 50.76, with Total Debt to Total Assets ending up at 36.66. Long-Term Debt to Equity for the company is recorded at 99.44, with the Long-Term Debt to Total Capital now at 48.96.

Reflecting on the efficiency of the workforce at the company, Pilgrim’s Pride Corporation [PPC] managed to generate an average of $7,794 per employee. Receivables Turnover for the company is 16.25 with a Total Asset Turnover recorded at a value of 1.75.Pilgrim’s Pride Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 1.90.

Pilgrim’s Pride Corporation [PPC]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Pilgrim’s Pride Corporation posted 0.45/share EPS, while the average EPS was predicted by analysts to be reported at 0.41/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 9.80%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PPC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Pilgrim’s Pride Corporation go to -4.80%.

An analysis of insider ownership at Pilgrim’s Pride Corporation [PPC]

There are presently around $716 million, or 18.50% of PPC stock, in the hands of institutional investors. The top three institutional holders of PPC stocks are: VANGUARD GROUP INC with ownership of 5,156,720, which is approximately -4.634% of the company’s market cap and around 79.69% of the total institutional ownership; BLACKROCK INC., holding 5,050,421 shares of the stock with an approximate value of $79.17 million in PPC stocks shares; and LSV ASSET MANAGEMENT, currently with $73.2 million in PPC stock with ownership of nearly 1.058% of the company’s market capitalization.

Positions in Pilgrim’s Pride Corporation stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 103 institutional holders increased their position in Pilgrim’s Pride Corporation [NASDAQ:PPC] by around 5,284,203 shares. Additionally, 126 investors decreased positions by around 10,557,272 shares, while 26 investors held positions by with 27,345,584 shares. The mentioned changes placed institutional holdings at 43,187,059 shares, according to the latest SEC report filing. PPC stock had 34 new institutional investments in for a total of 2,052,404 shares, while 43 institutional investors sold positions of 2,137,293 shares during the same period.

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