Tyson Foods (TSN) Downgraded to Hold at Zacks Investment Research
According to Zacks, “Tyson Foods’ shares have increased in the past three months. The company is gaining from rising demand for protein packed offerings. In fact, during the first quarter of fiscal 2019, the Chicken and Beef categories continued to perform well. Moreover, the company expects net sales in fiscal 2019 to reach $43 million, primarily backed by growth in the Chicken unit. Additionally, the company is gaining from acquisitions. It recently announced a deal to acquire Thai and European operations of BRF S.A. Further, the company is on track with Financial Fitness Program to boost operating efficiencies and generate savings. However, Tyson Foods’ is witnessing lower sales volumes in the Pork and Prepared Foods categories. While the Pork category has been negatively impacted by adverse demand-supply conditions, the Prepared Foods segment was hurt by divestitures. Also, the company is experiencing input cost pressures.”
Several other analysts have also recently issued reports on the stock. ValuEngine upgraded shares of Tyson Foods from a sell rating to a hold rating in a research note on Thursday, March 21st. Stephens assumed coverage on shares of Tyson Foods in a research note on Monday, March 4th. They issued an overweight rating and a $62.26 target price on the stock. Jefferies Financial Group reiterated a buy rating and issued a $75.00 target price on shares of Tyson Foods in a research note on Sunday, February 17th. Mizuho reaffirmed a buy rating and set a $82.00 target price on shares of Tyson Foods in a report on Friday, February 8th. Finally, Vertical Group raised shares of Tyson Foods from a hold rating to a buy rating in a report on Thursday, January 10th. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and nine have issued a buy rating to the stock. The stock presently has a consensus rating of Hold and an average target price of $70.95.
Tyson Foods (NYSE:TSN) last released its quarterly earnings data on Thursday, February 7th. The company reported $1.58 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.55 by $0.03. Tyson Foods had a net margin of 4.86% and a return on equity of 17.25%. The company had revenue of $10.19 billion during the quarter, compared to the consensus estimate of $10.33 billion. During the same period last year, the firm earned $1.81 EPS. Tyson Foods’s revenue for the quarter was down .4% on a year-over-year basis. On average, equities analysts expect that Tyson Foods will post 5.93 earnings per share for the current year.
The company also recently declared a quarterly dividend, which will be paid on Friday, June 14th. Shareholders of record on Friday, May 31st will be issued a $0.375 dividend. This represents a $1.50 dividend on an annualized basis and a yield of 2.08%. The ex-dividend date is Thursday, May 30th. Tyson Foods’s dividend payout ratio (DPR) is presently 24.35%.
In other Tyson Foods news, insider Chad Roderick Martin sold 8,233 shares of the firm’s stock in a transaction on Friday, February 22nd. The shares were sold at an average price of $62.36, for a total value of $513,409.88. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Scott Rouse sold 2,500 shares of the firm’s stock in a transaction on Monday, March 11th. The stock was sold at an average price of $64.22, for a total transaction of $160,550.00. The disclosure for this sale can be found here. 1.69% of the stock is owned by company insiders.
A number of institutional investors have recently made changes to their positions in TSN. Huntington National Bank boosted its stake in shares of Tyson Foods by 236.9% during the 4th quarter. Huntington National Bank now owns 539 shares of the company’s stock valued at $29,000 after purchasing an additional 379 shares in the last quarter. PRW Wealth Management LLC bought a new stake in shares of Tyson Foods during the 4th quarter valued at about $29,000. Legacy Financial Advisors Inc. bought a new stake in shares of Tyson Foods during the 4th quarter valued at about $31,000. Moody National Bank Trust Division bought a new stake in shares of Tyson Foods during the 1st quarter valued at about $31,000. Finally, Citizens Financial Group Inc RI bought a new stake in shares of Tyson Foods during the 4th quarter valued at about $37,000. 70.28% of the stock is currently owned by institutional investors and hedge funds.
Tyson Foods Company Profile
Tyson Foods, Inc, together with its subsidiaries, operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken, and Prepared Foods. The company processes live fed cattle and live market hogs; fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, as well as case ready beef and pork, and fully-cooked meats; and raises and processes chickens into fresh, frozen, and value-added chicken products.
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