Caxton Associates LLP Makes New Investment in Tyson Foods, Inc. $TSN

Key Points

• Caxton Associates LLP purchased 9,012 shares of Tyson Foods, valued at approximately $575,000, as part of a broader investment strategy that saw multiple hedge funds increase their stakes in the company during the first quarter.
• Tyson Foods recently announced a quarterly dividend of $0.50 per share, representing an annual yield of 3.6%, with a share buyback plan authorizing the repurchase of 43 million shares, reflecting confidence in the company's valuation.
• The company beat analysts' earnings estimates by reporting $0.91 EPS for the quarter on revenue of $13.88 billion, marking a 4% increase from the same quarter last year.

Caxton Associates LLP purchased a new position in shares of Tyson Foods, Inc. (NYSE:TSN - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 9,012 shares of the company's stock, valued at approximately $575,000.

A number of other hedge funds have also modified their holdings of the company. UniSuper Management Pty Ltd grew its holdings in shares of Tyson Foods by 4.3% during the first quarter. UniSuper Management Pty Ltd now owns 38,899 shares of the company's stock worth $2,482,000 after buying an additional 1,600 shares in the last quarter. Scientech Research LLC bought a new position in Tyson Foods in the first quarter valued at approximately $833,000. Parallax Volatility Advisers L.P. bought a new position in shares of Tyson Foods during the 1st quarter worth approximately $320,000. PharVision Advisers LLC bought a new position in shares of Tyson Foods during the 1st quarter worth approximately $376,000. Finally, NFJ Investment Group LLC boosted its stake in shares of Tyson Foods by 10.1% during the 1st quarter. NFJ Investment Group LLC now owns 600,246 shares of the company's stock worth $38,302,000 after acquiring an additional 55,301 shares during the period. 67.00% of the stock is currently owned by institutional investors.

Tyson Foods Price Performance

TSN stock opened at $56.09 on Friday. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.73 and a quick ratio of 0.78. Tyson Foods, Inc. has a 1 year low of $51.85 and a 1 year high of $65.95. The company's 50-day moving average is $55.43 and its 200-day moving average is $57.39. The stock has a market capitalization of $19.96 billion, a PE ratio of 25.50, a price-to-earnings-growth ratio of 0.75 and a beta of 0.59.

Tyson Foods (NYSE:TSN - Get Free Report) last announced its quarterly earnings data on Monday, August 4th. The company reported $0.91 EPS for the quarter, beating analysts' consensus estimates of $0.72 by $0.19. Tyson Foods had a return on equity of 7.49% and a net margin of 1.45%.The firm had revenue of $13.88 billion during the quarter, compared to analysts' expectations of $13.54 billion. During the same quarter last year, the firm posted $0.87 earnings per share. The company's revenue for the quarter was up 4.0% compared to the same quarter last year. Tyson Foods has set its FY 2025 guidance at EPS. Equities research analysts expect that Tyson Foods, Inc. will post 3.8 EPS for the current fiscal year.

Tyson Foods declared that its board has authorized a share buyback plan on Thursday, August 7th that authorizes the company to repurchase 43,000,000 outstanding shares. This repurchase authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Tyson Foods Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 15th. Shareholders of record on Monday, December 1st will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date of this dividend is Monday, December 1st. Tyson Foods's dividend payout ratio (DPR) is 90.91%.

Analyst Upgrades and Downgrades

TSN has been the subject of several recent research reports. BMO Capital Markets reduced their price target on Tyson Foods from $62.00 to $58.00 and set a "market perform" rating for the company in a research note on Monday, July 28th. Bernstein Bank cut Tyson Foods to a "market perform" rating and lowered their price target for the stock from $74.00 to $59.00 in a report on Wednesday, July 23rd. JPMorgan Chase & Co. assumed coverage on Tyson Foods in a report on Wednesday, August 20th. They set a "neutral" rating and a $60.00 price target for the company. The Goldman Sachs Group started coverage on Tyson Foods in a report on Monday, June 23rd. They issued a "buy" rating and a $67.00 target price for the company. Finally, JP Morgan Cazenove decreased their price target on Tyson Foods from $61.00 to $60.00 and set a "neutral" rating for the company in a research note on Monday, July 7th. Two analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to data from MarketBeat, Tyson Foods currently has a consensus rating of "Hold" and an average target price of $61.25.

Tyson Foods Profile

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.

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