BRF (NYSE:BRFS) Shares Gap Down on Disappointing Earnings

Brf S.A. (NYSE:BRFS) shares gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $3.31, but opened at $3.09. BRF shares last traded at $3.15, with a volume of 879,619 shares changing hands.

The company reported $0.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.11). BRF had a net margin of 6.52% and a return on equity of 19.66%. The business had revenue of $3 billion during the quarter, compared to analysts’ expectations of $2.72 billion.

BRF Cuts Dividend

The business also recently announced a — dividend, which was paid on Thursday, January 9th. Shareholders of record on Wednesday, December 18th were issued a dividend of $0.0217 per share. This represents a yield of 1.6%. The ex-dividend date was Wednesday, December 18th. BRF’s dividend payout ratio (DPR) is presently 18.60%.

Analysts Set New Price Targets

BRFS has been the topic of a number of analyst reports. StockNews.com lowered BRF from a “strong-buy” rating to a “buy” rating in a research note on Thursday. Citigroup raised shares of BRF from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, January 22nd. Two equities research analysts have rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $10.70.

Hedge Funds Weigh In On BRF

Large investors have recently added to or reduced their stakes in the business. TD Private Client Wealth LLC purchased a new position in shares of BRF during the 3rd quarter worth about $27,000. Hennion & Walsh Asset Management Inc. acquired a new position in BRF during the fourth quarter worth approximately $43,000. PFG Investments LLC purchased a new position in BRF during the fourth quarter worth approximately $51,000. Headlands Technologies LLC acquired a new position in shares of BRF in the 4th quarter valued at $55,000. Finally, US Bancorp DE grew its stake in shares of BRF by 127.1% during the 3rd quarter. US Bancorp DE now owns 15,871 shares of the company’s stock valued at $69,000 after buying an additional 8,882 shares during the period. 4.76% of the stock is currently owned by hedge funds and other institutional investors.

BRF Price Performance

The company has a current ratio of 1.45, a quick ratio of 0.93 and a debt-to-equity ratio of 1.05. The company has a market capitalization of $3.33 billion, a PE ratio of 7.16, a PEG ratio of 0.19 and a beta of 1.86. The company’s 50 day moving average price is $3.72 and its 200-day moving average price is $4.18.

About BRF

BRF SA raises, produces, and slaughters poultry and pork for processing, production, and sale of fresh meat, processed products, pasta, margarine, pet food, and other products. The company provides frozen whole and cut chicken, frozen pork, and turkey, and halal products for Islamic markets; processed foods, such as marinated, frozen, seasoned whole, and cut chicken, roosters, sausages, ham products, bologna, frankfurters, salamis, bacons, cold meats, and other smoked products; and hamburgers, steaks, breaded meat products, kibbeh, and meatballs, as well as chicken sausages, hot dogs, and chicken bologna.