Raymond James initiates QXO stock with Outperform rating on acquisition strategy
SMITHFIELD, Va. - Smithfield Foods, Inc. (NASDAQ:SFD), a $10 billion market cap food company currently trading at $25.51, announced Wednesday that its principal shareholder, SFDS UK Holdings Limited, will sell 16 million shares of common stock in a secondary public offering. According to InvestingPro analysis, the company maintains a "GREAT" financial health score and appears undervalued based on its Fair Value assessment.
The selling shareholder also plans to grant underwriters a 30-day option to purchase up to 2.4 million additional shares, according to a company press release.
Smithfield Foods will not sell any shares in the offering and will not receive any proceeds from the sale. The company, which specializes in value-added packaged meats and fresh pork products, will remain uninvolved in the transaction.
Morgan Stanley, BofA Securities and Barclays are serving as joint lead book-running managers for the proposed offering.
The offering will be made only through a prospectus, and a registration statement has been filed with the Securities and Exchange Commission but has not yet become effective. The securities cannot be sold until the registration statement becomes effective.
Smithfield Foods trades on the Nasdaq under the ticker symbol SFD and describes itself as an American food company with leading positions in packaged meats and fresh pork products.
In other recent news, Smithfield Foods reported its second-quarter 2025 earnings, showcasing a robust financial performance. The company achieved earnings per share of $0.55, aligning with Street expectations and surpassing UBS’s forecast of $0.49 per share. Smithfield Foods’ consolidated sales reached $3.8 billion, representing an 11% increase compared to the previous year. Additionally, the adjusted operating profit climbed to $298 million, a significant 20.1% rise from the previous year. Following these results, UBS raised its price target for Smithfield Foods to $28.50, maintaining a Buy rating. The firm’s strong earnings and profitability growth come despite a challenging consumer spending environment. These recent developments highlight the company’s resilience and strategic execution in the market.
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