Tyson Foods, Inc. (TSN) Is a Trending Stock: Facts to Know Before Betting on It
Tyson (TSN) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Tyson Foods: Vulnerable To Changing Consumer Spend
Tyson Foods has struggled to increase revenue due to unfavorable market conditions, and underperforms some peers in total return over a five-year period. The company is vulnerable to shifting consumer spending patterns and competition from private label brands. The current dividend payout ratio is high, but prospects are improving as free cash flow has grown over the last quarter.
Meridian Wealth Management LLC Trims Stock Position in Tyson Foods, Inc. (NYSE:TSN)
Meridian Wealth Management LLC decreased its position in shares of Tyson Foods, Inc. (NYSE:TSN – Free Report) by 8.6% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The fund owned 5,753 shares of the company’s stock after selling 542 shares during the quarter. Meridian Wealth Management LLC’s holdings in Tyson Foods were worth $309,000 as of its most recent filing with the SEC. A number of other hedge funds and other institutional investors have also made changes to their positions in TSN. Panagora Asset Management Inc. grew its position in shares of Tyson Foods by 23.5% during the fourth quarter. Panagora Asset Management Inc. now owns 37,796 shares of the company’s stock worth $2,032,000 after acquiring an additional 7,194 shares during the last quarter. WealthTrust Asset Management LLC acquired a new position in Tyson Foods in the 4th quarter valued at about $1,045,000. ARGA Investment Management LP acquired a new stake in Tyson Foods during the 4th quarter worth approximately $4,677,000. Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in shares of Tyson Foods by 5.3% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 291,068 shares of the company’s stock valued at $15,895,000 after purchasing an additional 14,612 shares during the last quarter. Finally, Envestnet Portfolio Solutions Inc. increased its holdings in shares of Tyson Foods by 8.6% in the fourth quarter. Envestnet Portfolio Solutions Inc. now owns 7,470 shares of the company’s stock valued at $402,000 after purchasing an additional 594 shares during the period. Institutional investors and hedge funds own 67.00% of the company’s stock. Analyst Upgrades and Downgrades Several analysts have recently weighed in on TSN shares. Barclays raised shares of Tyson Foods from an “underweight” rating to an “overweight” rating and lifted their target price for the company from $53.00 to $69.00 in a report on Tuesday, April 16th. StockNews.com raised Tyson Foods from a “hold” rating to a “buy” rating in a report on Monday, May 13th. Stephens reissued an “overweight” rating and issued a $70.00 target price on shares of Tyson Foods in a report on Tuesday, February 6th. BMO Capital Markets upped their price target on shares of Tyson Foods from $55.00 to $58.00 and gave the stock a “market perform” rating in a research note on Tuesday, May 7th. Finally, HSBC boosted their price objective on shares of Tyson Foods from $48.00 to $51.00 and gave the stock a “reduce” rating in a report on Tuesday, May 7th. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $60.22. Read Our Latest Stock Analysis on Tyson Foods Tyson Foods Stock Down 1.1 % Shares of NYSE TSN opened at $60.25 on Monday. The firm has a market cap of $21.51 billion, a P/E ratio of -33.85, a price-to-earnings-growth ratio of 0.45 and a beta of 0.74. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.87 and a current ratio of 1.77. Tyson Foods, Inc. has a 1 year low of $44.94 and a 1 year high of $62.04. The firm’s 50 day moving average price is $58.91 and its 200 day moving average price is $54.42. Tyson Foods (NYSE:TSN – Get Free Report) last released its earnings results on Monday, May 6th. The company reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.39 by $0.23. The firm had revenue of $13.07 billion for the quarter, compared to the consensus estimate of $13.16 billion. Tyson Foods had a positive return on equity of 3.53% and a negative net margin of 1.16%. The firm’s revenue for the quarter was down .5% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.04) earnings per share. As a group, sell-side analysts anticipate that Tyson Foods, Inc. will post 2.47 earnings per share for the current year. Tyson Foods Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Friday, September 13th. Shareholders of record on Friday, August 30th will be issued a $0.49 dividend. The ex-dividend date is Friday, August 30th. This represents a $1.96 dividend on an annualized basis and a dividend yield of 3.25%. Tyson Foods’s dividend payout ratio (DPR) is presently -110.11%. Insider Activity In related news, Director Noel W. White sold 9,000 shares of Tyson Foods stock in a transaction on Tuesday, February 20th. The stock was sold at an average price of $53.75, for a total value of $483,750.00. Following the transaction, the director now owns 31,115 shares in the company, valued at $1,672,431.25. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 2.05% of the company’s stock. Tyson Foods Company Profile (Free Report) 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 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; raises and processes chickens into fresh, frozen, and value-added chicken products, including breaded chicken strips, nuggets, patties, and other ready-to-fix or fully cooked chicken parts; and supplies poultry breeding stock.
Tyson Foods (TSN) Up More Than 25% in 6 Months: Here's Why
Tyson Foods Inc. (TSN Quick QuoteTSN - Free Report) appears well-positioned on the back of a growing brand portfolio. The renowned meat products company is leveraging the strength of its key growth drivers to its advantage. The company is implementing various operational and supply chain efficiency programs to enhance its long-term prospects.The company sustained its positive momentum in the second quarter of fiscal 2024 while advancing its key initiatives. The strategies in place are yielding tangible results, as reflected in year over year bottom-line growth.The Zacks Rank #2 (Buy) company’s shares have rallied 25.6% in the past three months compared with the industry’s growth of 22.4%. The stock has appreciated the Zacks Consumer Staples’s growth of 7.6% during this time.Let’s delve deeper.Brand StrengthTSN benefits from a diverse portfolio of core proteins, including chicken, pork and beef. The company's iconic brands, such as Tyson, Jimmy Dean and Hillshire Farm, continue to resonate with consumers, contributing to market share growth. It continues to invest in brand building and innovation to maintain and grow its market share. It prioritizes innovation, marketing and strong customer partnerships to meet consumer preferences and drive long-term brand loyalty. Image Source: Zacks Investment ResearchKey Strategies in PlaceTyson Foods’ growth strategy is based on three main pillars. These include driving growth across the core protein platform. The company expects global demand for protein to continue rising and remains well-placed to cater to it. Tyson Foods maintains a leadership position in the protein industry, boasting some of the most renowned brands in food and a wide range of offerings. This resilience allows it to sustain a healthy market share despite a challenging consumer environment.While Tyson Foods is pleased with its brand strength, it is constantly building innovations to expand the appeal and market opportunities for its products. The company is benefiting from operational enhancements while making incremental improvements in yield and live operations. Ongoing productivity initiatives based on procurement, logistics and digitalization are likely to solidify the company’s fundamentals. The company is refining its digital capabilities, leveraging data, automation and AI technology to enhance decision-making and drive better outcomes.Measures to Boost EfficiencyTyson Foods focuses on operational excellence across its segments. The company has undertaken bold actions to enhance operational efficiency, including plant closures, improvements in live operations, yield optimization and labor efficiency. This effort involved the closure of the last of six chicken facilities and two case-ready beef facilities. One of its pork plants is slated for closure as part of this ongoing optimization process. These actions are likely to fuel efficiencies across segments. The company is investing in capacity expansion and automation technology investments. Tyson Foods projects capital expenditures to be $1.2-$1.4 billion for the fiscal 2024. These include expenditures related to capacity expansion, automation and product and brand innovation. Wrapping UpAs the company progresses into the back half of the fiscal 2024, it is focused on executing fundamental strategies and maximizing the multi-protein portfolio. For the fiscal 2024, the United States Department of Agriculture (USDA) suggests domestic protein production (beef, pork, chicken and turkey) to increase slightly from fiscal 2023 levels. Management envisions adjusted operating income in the $1.4-$1.8 billion band in the fiscal 2024. Total company sales are projected to be relatively flat in fiscal 2024 versus fiscal 2023.Top 3 PicksVital Farms Inc. (VITL Quick QuoteVITL - Free Report) offers a range of produced pasture-raised foods. It currently sports a Zacks Rank #1 (Strong Buy). VITL has a trailing four-quarter average earnings surprise of 102.1%. The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings suggests growth of 22.5% and 59.3%, respectively, from the year-ago reported numbers.The J. M. Smucker Company (SJM Quick QuoteSJM - Free Report) , a branded food and beverage product company, currently carries a Zacks Rank #2 (Buy). SJM has a trailing four-quarter earnings surprise of 7.6%, on average.The Zacks Consensus Estimate for J. M. Smucker’s current fiscal year earnings indicates growth of 7.6% from the year-ago reported figure.Utz Brands Inc. (UTZ Quick QuoteUTZ - Free Report) manufactures a diverse portfolio of salty snacks, currently carrying a Zacks Rank #2. UTZ has a trailing four-quarter earnings surprise of 2% on average.The Zacks Consensus Estimate for Utz Brands’ current financial-year earnings suggests growth of 24.6% from the year-ago reported numbers. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>
