Tyson Foods (TSN) Downgraded by Zacks Investment Research to “Hold”

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Tyson Foods (NYSE:TSN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Monday.

According to Zacks, “Tyson Foods boasts a robust bottom-line performance, which have surpassed estimates in the trailing six quarters. During the fourth quarter of fiscal 2018, lower tax rates supported bottom-line performance. The quarter also witnessed improved sales in the Chicken and Beef categories. Further, the company focuses on strategic acquisitions to strengthen portfolio. The company’s Financial Fitness Plan has also been yielding well. However, Tyson Foods, whose shares underperformed the industry in the past three months, witnessed lower sales volumes in the Pork and Prepared Foods categories during the fourth quarter. While the Pork category was negatively impacted by adverse demand-supply conditions, the Prepared Foods category was hurt by divestitures. Further, the company has been facing volatility in domestic and export prices of chicken and pork. To top it, management provided a dismal earnings projection for fiscal 2019.”

TSN has been the topic of a number of other reports. Pivotal Research reiterated a “sell” rating and set a $40.00 price target on shares of Tyson Foods in a report on Tuesday, November 13th. Jefferies Financial Group reiterated a “buy” rating and set a $75.00 price target on shares of Tyson Foods in a report on Monday, September 17th. Mizuho reiterated a “buy” rating and set a $78.00 price target on shares of Tyson Foods in a report on Wednesday, November 14th. ValuEngine lowered Tyson Foods from a “sell” rating to a “strong sell” rating in a report on Thursday, September 27th. Finally, Piper Jaffray Companies set a $72.00 price target on Tyson Foods and gave the stock a “buy” rating in a report on Monday, November 26th. Three equities research analysts have rated the stock with a sell rating, seven have given a hold rating and nine have given a buy rating to the stock. The stock currently has an average rating of “Hold” and a consensus price target of $70.43.

Shares of NYSE:TSN opened at $57.83 on Monday. The company has a market cap of $20.65 billion, a P/E ratio of 9.39, a P/E/G ratio of 0.87 and a beta of 0.26. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.43 and a current ratio of 1.13. Tyson Foods has a 12-month low of $49.77 and a 12-month high of $81.51.

Tyson Foods (NYSE:TSN) last issued its quarterly earnings results on Tuesday, November 13th. The company reported $1.58 EPS for the quarter, topping the Zacks’ consensus estimate of $1.33 by $0.25. The business had revenue of $10 billion for the quarter, compared to analyst estimates of $10.30 billion. Tyson Foods had a return on equity of 18.39% and a net margin of 7.55%. Tyson Foods’s quarterly revenue was down 1.4% compared to the same quarter last year. During the same period last year, the company posted $1.43 earnings per share. As a group, research analysts predict that Tyson Foods will post 5.92 earnings per share for the current fiscal year.

In other Tyson Foods news, Director Robert C. Thurber sold 500 shares of the business’s stock in a transaction on Monday, December 17th. The stock was sold at an average price of $54.45, for a total value of $27,225.00. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Gaurdie E. Jr. Banister bought 6,897 shares of the stock in a transaction on Thursday, December 6th. The stock was purchased at an average price of $58.01 per share, for a total transaction of $400,094.97. The disclosure for this purchase can be found here. Insiders own 1.69% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. raised its stake in shares of Tyson Foods by 0.3% in the third quarter. BlackRock Inc. now owns 20,346,281 shares of the company’s stock valued at $1,211,212,000 after buying an additional 57,192 shares during the period. Northern Trust Corp raised its stake in shares of Tyson Foods by 13.1% during the 2nd quarter. Northern Trust Corp now owns 6,239,551 shares of the company’s stock valued at $429,594,000 after purchasing an additional 722,092 shares during the period. FMR LLC raised its stake in shares of Tyson Foods by 12.1% during the 2nd quarter. FMR LLC now owns 3,990,894 shares of the company’s stock valued at $274,773,000 after purchasing an additional 430,422 shares during the period. Prudential Financial Inc. raised its stake in shares of Tyson Foods by 19.1% during the 3rd quarter. Prudential Financial Inc. now owns 2,149,887 shares of the company’s stock valued at $127,983,000 after purchasing an additional 345,362 shares during the period. Finally, Bank of New York Mellon Corp raised its stake in shares of Tyson Foods by 3.0% during the 3rd quarter. Bank of New York Mellon Corp now owns 1,936,309 shares of the company’s stock valued at $115,268,000 after purchasing an additional 55,492 shares during the period. Hedge funds and other institutional investors own 68.42% 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: 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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