Tyson Foods Inc. (TSN) Shares Down 14.5% Following Weak Earnings
Tyson Foods Inc. (NYSE:TSN) fell 14.5% during mid-day trading on Monday following a weaker than expected earnings announcement. The company traded as low as $55.72 and last traded at $57.60, with a volume of 30,088,271 shares traded. The stock had previously closed at $67.36.
The company reported $0.96 EPS for the quarter, missing analysts’ consensus estimates of $1.16 by $0.20. Tyson Foods had a return on equity of 17.29% and a net margin of 4.28%. The company earned $9.16 billion during the quarter, compared to analysts’ expectations of $9.38 billion. During the same quarter in the previous year, the company earned $0.83 EPS. The firm’s quarterly revenue was down 12.8% compared to the same quarter last year.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, March 15th. Stockholders of record on Wednesday, March 1st will be paid a $0.225 dividend. This is an increase from Tyson Foods’s previous quarterly dividend of $0.15. This represents a $0.90 dividend on an annualized basis and a dividend yield of 1.56%. Tyson Foods’s dividend payout ratio is presently 14.53%.
A number of brokerages have recently commented on TSN. Vetr upgraded Tyson Foods from a “hold” rating to a “strong-buy” rating and set a $67.75 target price on the stock in a research note on Monday. Goldman Sachs Group Inc. downgraded Tyson Foods to a “sell” rating in a research note on Monday. RBC Capital Markets restated a “sector perform” rating and issued a $75.00 target price on shares of Tyson Foods in a research note on Sunday. Zacks Investment Research downgraded Tyson Foods from a “buy” rating to a “hold” rating in a research note on Friday, October 28th. Finally, JPMorgan Chase & Co. downgraded Tyson Foods from a “buy” rating to a “sell” rating in a research note on Wednesday, October 12th. Three investment analysts have rated the stock with a sell rating, five have assigned a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average price target of $68.34.
In other Tyson Foods news, insider Donnie King sold 146,641 shares of the stock in a transaction that occurred on Thursday, August 25th. The stock was sold at an average price of $75.75, for a total transaction of $11,108,055.75. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Noel W. White sold 74,934 shares of the stock in a transaction that occurred on Friday, August 26th. The shares were sold at an average price of $75.44, for a total value of $5,653,020.96. The disclosure for this sale can be found here. Company insiders own 2.69% of the company’s stock.
Institutional investors have recently made changes to their positions in the stock. Capstone Asset Management Co. boosted its position in shares of Tyson Foods by 0.5% in the second quarter. Capstone Asset Management Co. now owns 36,688 shares of the company’s stock worth $2,450,000 after buying an additional 167 shares during the last quarter. NN Investment Partners Holdings N.V. boosted its position in shares of Tyson Foods by 104.3% in the second quarter. NN Investment Partners Holdings N.V. now owns 494,703 shares of the company’s stock worth $33,041,000 after buying an additional 252,540 shares during the last quarter. Breton Hill Capital Ltd. boosted its position in shares of Tyson Foods by 5.3% in the second quarter. Breton Hill Capital Ltd. now owns 15,928 shares of the company’s stock worth $1,064,000 after buying an additional 803 shares during the last quarter. Quotient Investors LLC boosted its position in shares of Tyson Foods by 56.3% in the second quarter. Quotient Investors LLC now owns 45,287 shares of the company’s stock worth $3,025,000 after buying an additional 16,309 shares during the last quarter. Finally, Central Bank & Trust Co. purchased a new position in shares of Tyson Foods during the second quarter worth approximately $433,000. 73.44% of the stock is owned by institutional investors and hedge funds.
The stock has a market capitalization of $22.01 billion, a price-to-earnings ratio of 14.00 and a beta of 0.18. The company’s 50-day moving average price is $69.73 and its 200 day moving average price is $69.81.
Tyson Foods Company Profile
Tyson Foods, Inc is a food company. The Company is engaged in offering chicken, beef and pork, as well as prepared foods, including bacon, breakfast sausage, turkey, lunchmeat, hot dogs, pizza crusts and toppings, tortillas and desserts. The Company offers food products under Tyson, Jimmy Dean, Hillshire Farm, Sara Lee, Ball Park, Wright, Aidells and State Fair brands.
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