Tyson Foods (NYSE:TSN) Stock Rating Reaffirmed by Pivotal Research

Tyson Foods (NYSE:TSN)‘s stock had its “sell” rating restated by stock analysts at Pivotal Research in a report released on Monday, August 6th. They presently have a $40.00 price target on the stock. Pivotal Research’s price objective points to a potential downside of 36.32% from the company’s current price.

The analysts wrote, “We are increasing our estimate to $5.70 for FY18; previously $5.55 (even while cutting our 4Q estimate). At our estimate, which it the low-end of guidance, EBIT dollars would fall 30.7% in the 4Q and EBIT margin would fall 290 BP to 6.0%. Our FY19 estimate goes to $4.10 ($3.65 previously) and we introduce a FY20 estimate of $3.75. “Short-term headwinds.” Tyson’s commentary on the current position of the business was remarkably sanguine. They acknowledged the low visibility of the outlook for trade and the importance of the export market to maintaining margins. Tyson seems to say there is nothing to see here. Similarly, analyst questions were remarkably tame – no one challenged the notion that margins should stabilize.””

A number of other equities research analysts also recently issued reports on the stock. Jefferies Financial Group reissued a “buy” rating and issued a $75.00 price target on shares of Tyson Foods in a report on Tuesday, July 31st. Barclays lowered their price target on shares of Tyson Foods from $80.00 to $73.00 and set a “buy” rating on the stock in a report on Monday, July 30th. Piper Jaffray Companies reissued a “buy” rating and issued a $70.00 price target on shares of Tyson Foods in a report on Tuesday, July 31st. ValuEngine downgraded shares of Tyson Foods from a “sell” rating to a “strong sell” rating in a report on Monday, July 30th. Finally, Stephens lowered their price target on shares of Tyson Foods to $73.00 and set an “overweight” rating on the stock in a report on Monday, July 30th. They noted that the move was a valuation call. Three research analysts have rated the stock with a sell rating, seven have given a hold rating and nine have issued a buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus price target of $75.73.

NYSE TSN traded up $0.26 during trading on Monday, hitting $62.81. 2,781,800 shares of the company’s stock traded hands, compared to its average volume of 2,369,737. Tyson Foods has a 12-month low of $56.79 and a 12-month high of $84.65. The company has a market cap of $22.86 billion, a PE ratio of 11.79, a price-to-earnings-growth ratio of 0.96 and a beta of 0.05. The company has a quick ratio of 0.66, a current ratio of 1.48 and a debt-to-equity ratio of 0.71.

Tyson Foods (NYSE:TSN) last announced its quarterly earnings results on Monday, August 6th. The company reported $1.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.33 by $0.17. Tyson Foods had a net margin of 7.17% and a return on equity of 18.84%. The firm had revenue of $10.05 billion for the quarter, compared to the consensus estimate of $10.22 billion. During the same period in the prior year, the firm posted $1.28 earnings per share. The company’s revenue for the quarter was up 2.0% on a year-over-year basis. equities research analysts anticipate that Tyson Foods will post 5.89 EPS for the current year.

In related news, CEO Thomas P. Hayes sold 20,202 shares of the firm’s stock in a transaction that occurred on Sunday, July 1st. The shares were sold at an average price of $68.85, for a total value of $1,390,907.70. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Sally Grimes sold 19,258 shares of the firm’s stock in a transaction that occurred on Sunday, July 1st. The shares were sold at an average price of $68.85, for a total transaction of $1,325,913.30. The disclosure for this sale can be found here. Insiders sold 39,610 shares of company stock worth $2,727,593 over the last ninety days. 2.65% of the stock is currently owned by insiders.

Hedge funds and other institutional investors have recently modified their holdings of the business. BerganKDV Wealth Management LLC bought a new position in Tyson Foods during the second quarter valued at approximately $103,000. Trust Department MB Financial Bank N A bought a new position in Tyson Foods during the second quarter valued at approximately $106,000. MUFG Americas Holdings Corp grew its position in Tyson Foods by 99.3% during the second quarter. MUFG Americas Holdings Corp now owns 1,722 shares of the company’s stock valued at $119,000 after acquiring an additional 858 shares during the last quarter. Fort L.P. bought a new position in Tyson Foods during the second quarter valued at approximately $119,000. Finally, Verity Asset Management Inc. bought a new position in Tyson Foods during the first quarter valued at approximately $209,000. Institutional investors and hedge funds own 70.44% 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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