Zacks Investment Research cut shares of Tyson Foods (NYSE:TSN) from a buy rating to a hold rating in a research note issued to investors on Monday, April 30th.
According to Zacks, “Tyson Foods has surpassed the industry in the past year owing to strong performance in all business segments, particularly Chicken and Beef. The Prepared Foods category has also been depicting solid growth in particular, courtesy of rising demand for protein-packed brands and synergies from the AdvancePierre’ buyout. Notably, solid volumes across most units and savings from Financial Fitness program fueled Tyson Foods’ results in first-quarter fiscal 2018, wherein both the top and bottom line rose year over year and topped estimates. Such upsides also led to a heartening outlook for fiscal 2018. However, the company continues to incur higher wage and freight costs due to tightening market conditions. These hurdles are expected to linger and increase cost burden in fiscal 2018. Estimates have also been witnessing a downtrend ahead of the company's second-quarter fiscal 2018 results.”
A number of other brokerages have also weighed in on TSN. Piper Jaffray assumed coverage on shares of Tyson Foods in a research note on Thursday, January 4th. They issued an overweight rating and a $94.00 price target for the company. Buckingham Research assumed coverage on shares of Tyson Foods in a research note on Wednesday, February 21st. They set a neutral rating and a $82.00 target price for the company. Credit Suisse Group set a $78.00 target price on shares of Tyson Foods and gave the company a hold rating in a research note on Friday, February 9th. Mizuho set a $92.00 target price on shares of Tyson Foods and gave the company a buy rating in a research note on Friday, February 9th. Finally, Jefferies Group reissued a buy rating on shares of Tyson Foods in a research note on Thursday, February 8th. Three analysts have rated the stock with a sell rating, eight have given a hold rating and ten have assigned a buy rating to the stock. The company currently has a consensus rating of Hold and a consensus target price of $74.93.
NYSE TSN traded up $1.28 on Monday, hitting $68.56. The stock had a trading volume of 1,738,942 shares, compared to its average volume of 2,171,071. The stock has a market cap of $24.88 billion, a price-to-earnings ratio of 12.91, a price-to-earnings-growth ratio of 0.93 and a beta of 0.20. Tyson Foods has a one year low of $67.43 and a one year high of $68.14. The company has a current ratio of 1.56, a quick ratio of 0.69 and a debt-to-equity ratio of 0.73.
Tyson Foods (NYSE:TSN) last issued its quarterly earnings results on Monday, May 7th. The company reported $1.27 earnings per share for the quarter, missing analysts’ consensus estimates of $1.31 by ($0.04). The company had revenue of $9.77 billion during the quarter, compared to analyst estimates of $9.86 billion. Tyson Foods had a return on equity of 19.10% and a net margin of 6.97%. The company’s revenue was up 7.6% on a year-over-year basis. During the same period in the prior year, the company posted $1.01 earnings per share. equities research analysts expect that Tyson Foods will post 6.6 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 14th. Shareholders of record on Friday, August 31st will be paid a $0.30 dividend. The ex-dividend date is Thursday, August 30th. This represents a $1.20 annualized dividend and a yield of 1.75%. Tyson Foods’s dividend payout ratio is presently 22.60%.
In other news, insider Stephen R. Stouffer sold 15,489 shares of the stock in a transaction on Thursday, March 15th. The shares were sold at an average price of $74.22, for a total transaction of $1,149,593.58. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Gaurdie E. Jr. Banister sold 7,800 shares of the stock in a transaction on Thursday, February 15th. The stock was sold at an average price of $75.56, for a total transaction of $589,368.00. The disclosure for this sale can be found here. 1.55% of the stock is currently owned by corporate insiders.
Several institutional investors and hedge funds have recently made changes to their positions in the company. Prudential Financial Inc. boosted its holdings in shares of Tyson Foods by 10.0% during the 3rd quarter. Prudential Financial Inc. now owns 3,107,758 shares of the company’s stock worth $218,942,000 after buying an additional 283,327 shares during the period. Jaffetilchin Investment Partners LLC bought a new stake in shares of Tyson Foods during the 4th quarter worth $533,000. Montrusco Bolton Investments Inc. bought a new stake in shares of Tyson Foods during the 4th quarter worth $11,421,000. Nisa Investment Advisors LLC boosted its holdings in shares of Tyson Foods by 7.7% during the 4th quarter. Nisa Investment Advisors LLC now owns 115,265 shares of the company’s stock worth $9,345,000 after buying an additional 8,290 shares during the period. Finally, Atria Investments LLC boosted its holdings in shares of Tyson Foods by 50.5% during the 4th quarter. Atria Investments LLC now owns 10,071 shares of the company’s stock worth $816,000 after buying an additional 3,379 shares during the period. Institutional investors own 71.94% of the company’s stock.
About Tyson Foods
Tyson Foods, Inc, together with its subsidiaries, operates as a food company worldwide. It operates through four segments: Chicken, Beef, Pork, and Prepared Foods. The company raises and processes chickens into fresh, frozen, and value-added chicken products; processes live fed cattle and live market hogs; and 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.
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