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How to buy Sanderson Farms stock | 125.36

Own Sanderson Farms stock in just a few minutes.


Fact checked

Sanderson Farms, Inc is a packaged foods business based in the US. Sanderson Farms shares (SAFM) are listed on the NASDAQ and all prices are listed in US Dollars. Sanderson Farms employs 18,000 staff and has a trailing 12-month revenue of around USD$3.5 billion.

How to buy shares in Sanderson Farms

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Sanderson Farms. Find the stock by name or ticker symbol: SAFM. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Sanderson Farms reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$125.36, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Sanderson Farms, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Sanderson Farms. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted Sanderson Farms's share price?

Since the stock market crash in March caused by coronavirus, Sanderson Farms's share price has had significant negative movement.

Its last market close was USD$125.36, which is 7.40% down on its pre-crash value of USD$135.38 and 22.75% up on the lowest point reached during the March crash when the shares fell as low as USD$102.13.

If you had bought USD$1,000 worth of Sanderson Farms shares at the start of February 2020, those shares would have been worth USD$935.86 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$902.59.

Sanderson Farms share price

Use our graph to track the performance of SAFM stocks over time.

Sanderson Farms shares at a glance

Information last updated 2020-10-16.
Latest market closeUSD$125.36
52-week rangeUSD$102.13 - USD$179.45
50-day moving average USD$121.4977
200-day moving average USD$122.7216
Wall St. target priceUSD$138.43
PE ratio 85.8707
Dividend yield USD$1.76 (1.37%)
Earnings per share (TTM) USD$2.406

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Sanderson Farms stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Sanderson Farms price performance over time

Historical closes compared with the close of $125.36 from 2020-10-16

1 week (2020-10-15) -2.94%
1 month (2020-09-22) 7.36%
3 months (2020-07-22) 10.30%
6 months (2020-04-22) -3.41%
1 year (2019-10-22) -6.17%
2 years (2018-10-22) 28.05%
3 years (2017-10-20) -15.17%
5 years (2015-10-22) 81.92%

Is Sanderson Farms under- or over-valued?

Valuing Sanderson Farms stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Sanderson Farms's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Sanderson Farms's P/E ratio

Sanderson Farms's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 86x. In other words, Sanderson Farms shares trade at around 86x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Sanderson Farms's PEG ratio

Sanderson Farms's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.64. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Sanderson Farms's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Sanderson Farms's EBITDA

Sanderson Farms's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$90.9 million.

The EBITDA is a measure of a Sanderson Farms's overall financial performance and is widely used to measure a its profitability.

Sanderson Farms financials

Revenue TTM USD$3.5 billion
Gross profit TTM USD$279.1 million
Return on assets TTM -2.12%
Return on equity TTM -1.58%
Profit margin -0.64%
Book value $62.918
Market capitalisation USD$2.9 billion

TTM: trailing 12 months

Shorting Sanderson Farms shares

There are currently 1.1 million Sanderson Farms shares held short by investors – that's known as Sanderson Farms's "short interest". This figure is 10.7% down from 1.2 million last month.

There are a few different ways that this level of interest in shorting Sanderson Farms shares can be evaluated.

Sanderson Farms's "short interest ratio" (SIR)

Sanderson Farms's "short interest ratio" (SIR) is the quantity of Sanderson Farms shares currently shorted divided by the average quantity of Sanderson Farms shares traded daily (recently around 195984.8880597). Sanderson Farms's SIR currently stands at 5.36. In other words for every 100,000 Sanderson Farms shares traded daily on the market, roughly 5360 shares are currently held short.

However Sanderson Farms's short interest can also be evaluated against the total number of Sanderson Farms shares, or, against the total number of tradable Sanderson Farms shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Sanderson Farms's short interest could be expressed as 0.05% of the outstanding shares (for every 100,000 Sanderson Farms shares in existence, roughly 50 shares are currently held short) or 0.0598% of the tradable shares (for every 100,000 tradable Sanderson Farms shares, roughly 60 shares are currently held short).

A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against Sanderson Farms.

Find out more about how you can short Sanderson Farms stock.

Sanderson Farms share dividends


Dividend payout ratio: 93.96% of net profits

Recently Sanderson Farms has paid out, on average, around 93.96% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.37% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Sanderson Farms shareholders could enjoy a 1.37% return on their shares, in the form of dividend payments. In Sanderson Farms's case, that would currently equate to about $1.76 per share.

Sanderson Farms's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

Sanderson Farms's most recent dividend payout was on 20 October 2020. The latest dividend was paid out to all shareholders who bought their shares by 5 October 2020 (the "ex-dividend date").

Have Sanderson Farms's shares ever split?

Sanderson Farms's shares were split on a 3:2 basis on 27 February 2004. So if you had owned 2 shares the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your Sanderson Farms shares – just the quantity. However, indirectly, the new 33.3% lower share price could have impacted the market appetite for Sanderson Farms shares which in turn could have impacted Sanderson Farms's share price.

Sanderson Farms share price volatility

Over the last 12 months, Sanderson Farms's shares have ranged in value from as little as $102.13 up to $179.45. A popular way to gauge a stock's volatility is its "beta".

SAFM.US volatility(beta: 0.57)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Sanderson Farms's is 0.5676. This would suggest that Sanderson Farms's shares are less volatile than average (for this exchange).

Sanderson Farms overview

Sanderson Farms, Inc., an integrated poultry processing company, produces, processes, markets, and distributes fresh, frozen, and prepared chicken products in the United States. The company sells ice-packed, chill-packed, bulk-packed, and frozen chicken primarily under the Sanderson Farms brand name to retailers, distributors, and casual dining operators in the southeastern, southwestern, northeastern, and western United States, as well as to customers who resell frozen chicken into export markets. Its prepared chicken product line includes institutional and consumer packaged partially cooked or marinated chicken items for distributors and food service establishments. Sanderson Farms, Inc. was founded in 1947 and is headquartered in Laurel, Mississippi.

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