Hormel Foods (HRL) Negative Long-Term Forecast Update Case

In Oct, Hormel updated its strategic priorities long-term forecast, reducing projected sales growth and EPS .
On it, $HRL fell 9.8%, losing $1.95B+ of shareholder value.
Investors may have grounds to suspect Hormel of problems with its planning and budgeting systems.
On October 12, 2023, the United Food and Commercial Workers International Union announced workers for Hormel in several states ratified a new labor contract with "the largest wage increases in the company's history."

On that day, at an investor event Hormel issued financial targets reflecting ”updated strategic priorities” and updated its long-term forecast of sales growth, and long-term EPS growth.

On this news, $HRL fell 9.8% and lost over $1.95 billion of its market capitalization, seriously damaging shareholders.

Considering all the information, investors might have grounds to suspect that Hormel Foods and its executives failed to timely disclose the information that caused downward adjustments in long-term projections, which consequently led to their losses.

The case is already under investigation by at least one of the reputable law firms.

Case Status

Attorney Investigation

Alleged Offence

Misleading Statements,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

12 October 2023

Hormel Foods (HRL) Negative Long-Term Forecast Update Case

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