Smithfield Foods announces secondary offering of 19.5 million shares at $23.25 each by its principal shareholder.
Quiver AI Summary
Smithfield Foods, Inc. announced a secondary public offering of 19,531,698 shares of its common stock at a price of $23.25 per share, sold by its principal shareholder, SFDS UK Holdings Limited. The selling shareholder has also granted underwriters a 30-day option to purchase an additional 2,929,754 shares. The company itself is not selling any shares and will not benefit from the proceeds of the sale. The offering is expected to close on September 8, 2025, pending customary conditions. The offering will be managed by Morgan Stanley, BofA Securities, and Barclays, among others, and a prospectus regarding the offering will be available through the SEC and various financial institutions. The press release also contains forward-looking statements and emphasizes that actual results may differ from expectations.
Potential Positives
- The pricing of the secondary public offering at $23.25 per share indicates a stable demand for the company's stock, which reflects investor confidence in Smithfield Foods.
- The option for underwriters to purchase additional shares demonstrates potential for further interest in the company's stock, which could positively influence market perception.
- The effective registration statement by the SEC showcases compliance with regulatory requirements, enhancing the company's credibility in the eyes of investors.
- The involvement of well-established financial institutions as joint book-running managers suggests a strong belief in the offering's potential, likely boosting market confidence in the company.
Potential Negatives
- The offering is solely from a principal shareholder, indicating potential dilution of existing shares without any capital influx for the company, which may generate concerns among investors about the company's financial health.
- The company will not benefit from the raised capital as they are not selling any shares, which could signal a lack of confidence in needing to raise funds for growth or operational needs.
- The secondary offering may lead to short-term stock price volatility, potentially affecting investor sentiment negatively.
FAQ
What is the purpose of Smithfield Foods' secondary public offering?
Smithfield Foods is selling common stock shares through its principal shareholder, SFDS UK Holdings Limited.
How many shares are being offered in the public offering?
A total of 19,531,698 shares of common stock are being offered in this secondary public offering.
What is the price per share for this offering?
The shares are being offered at a price of $23.25 each to the public.
Will Smithfield Foods receive proceeds from this offering?
No, Smithfield Foods will not receive any proceeds from the sale of shares in this offering.
When is the expected closing date for the offering?
The offering is expected to close on September 8, 2025, subject to customary closing conditions.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$SFD Insider Trading Activity
$SFD insiders have traded $SFD stock on the open market 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $SFD stock by insiders over the last 6 months:
- KELLER D. WATTS (Chief Business Officer) purchased 4,291 shares for an estimated $101,353
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$SFD Analyst Ratings
Wall Street analysts have issued reports on $SFD in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Morgan Stanley issued a "Overweight" rating on 08/13/2025
To track analyst ratings and price targets for $SFD, check out Quiver Quantitative's $SFD forecast page.
$SFD Price Targets
Multiple analysts have issued price targets for $SFD recently. We have seen 3 analysts offer price targets for $SFD in the last 6 months, with a median target of $30.0.
Here are some recent targets:
- Manav Gupta from UBS set a target price of $28.5 on 08/13/2025
- Dara Mohsenian from Morgan Stanley set a target price of $30.0 on 08/13/2025
- Benjamin Theurer from Barclays set a target price of $30.0 on 08/13/2025
Full Release
SMITHFIELD, Va., Sept. 04, 2025 (GLOBE NEWSWIRE) -- Smithfield Foods, Inc. (Nasdaq: SFD) (the “Company”), an American food company and an industry leader in value-added packaged meats and fresh pork, today announced the pricing of a secondary public offering of 19,531,698 shares of common stock of the Company sold by SFDS UK Holdings Limited, the principal shareholder of the Company, at a price to the public of $23.25 per share. In addition, the selling shareholder has granted the underwriters a 30-day option to purchase up to 2,929,754 additional shares of the Company’s common stock at the public offering price, less underwriting discounts and commissions. The Company is not selling any shares of common stock in the offering and will not receive any proceeds from the sale of the shares by the selling shareholder, including from any exercise by the underwriters of their option to purchase additional shares. The offering is expected to close on September 8, 2025, subject to customary closing conditions.
Morgan Stanley, BofA Securities and Barclays are acting as joint lead book-running managers for the proposed offering. Goldman Sachs & Co. LLC, Citigroup and BNP Paribas are acting as joint book-running managers.
A registration statement, including a prospectus, relating to these securities has been filed with, and declared effective by, the U.S. Securities and Exchange Commission (the “SEC”). The offering is being made only by means of a prospectus. Copies of the final prospectus related to this offering, when available, may be obtained for free by visiting EDGAR on the SEC website at www.sec.gov. The prospectus relating to the proposed offering may also be obtained from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014; BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, Attn: Prospectus Department, by email at [email protected]; and Barclays Capital Inc., Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would not be permitted.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements regarding the proposed offering, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “intends,” “projects,” “contemplates,” “believes,” or “estimates” or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, the results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. We undertake no duty to update any statement made in this press release in light of new information or future events. The forward-looking statements contained in this press release are subject to substantial risks and uncertainties that could affect our current expectations and our actual results. A detailed discussion of these uncertainties and risks that affect our business is contained in our SEC filings, including our reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.”
About Smithfield Foods
Smithfield Foods, Inc. (Nasdaq: SFD) is an American food company with a leading position in packaged meats and fresh pork products. With a diverse brand portfolio and strong relationships with U.S. farmers and customers, we responsibly meet demand for quality protein around the world.
Investor Contact:
Julie MacMedan
Email:
[email protected]
Media Contact:
Ray Atkinson
Email:
[email protected]
Cell: 757.576.1383
