RNC Capital Management LLC Decreases Position in Tyson Foods, Inc. $TSN

Key Points

• RNC Capital Management LLC reduced its stake in Tyson Foods, Inc. by 92.8%, now holding only 37,831 shares after selling 488,428 shares.
• Tyson Foods recently faced a downgrade from several analysts, with Bernstein cutting their target price from $74.00 to $59.00 and Stephens reducing theirs from $61.00 to $55.00.
• The company declared a quarterly dividend of $0.50 and initiated a share buyback plan to repurchase up to 43 million shares, signaling management’s belief in the stock's value.

RNC Capital Management LLC lessened its holdings in shares of Tyson Foods, Inc. (NYSE:TSN - Free Report) by 92.8% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 37,831 shares of the company's stock after selling 488,428 shares during the period. RNC Capital Management LLC's holdings in Tyson Foods were worth $2,414,000 at the end of the most recent quarter.

Other hedge funds have also recently made changes to their positions in the company. Park Square Financial Group LLC acquired a new position in shares of Tyson Foods in the 4th quarter valued at $25,000. Curat Global LLC acquired a new position in shares of Tyson Foods in the 1st quarter valued at $28,000. Zions Bancorporation National Association UT acquired a new position in shares of Tyson Foods in the 1st quarter valued at $28,000. Rossby Financial LCC acquired a new position in shares of Tyson Foods in the 1st quarter valued at $53,000. Finally, Siemens Fonds Invest GmbH acquired a new position in shares of Tyson Foods in the 4th quarter valued at $65,000. 67.00% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on TSN shares. Bernstein Bank downgraded Tyson Foods to a "market perform" rating and cut their target price for the company from $74.00 to $59.00 in a research report on Wednesday, July 23rd. Sanford C. Bernstein downgraded Tyson Foods from an "outperform" rating to a "market perform" rating and cut their price target for the stock from $74.00 to $59.00 in a research report on Wednesday, July 23rd. Stephens cut their price target on Tyson Foods from $61.00 to $55.00 in a research report on Tuesday, July 15th. The Goldman Sachs Group assumed coverage on Tyson Foods in a research report on Monday, June 23rd. They set a "buy" rating and a $67.00 price target on the stock. Finally, JPMorgan Chase & Co. initiated coverage on Tyson Foods in a research report on Wednesday, August 20th. They set a "neutral" rating and a $60.00 price target on the stock. Two analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat, Tyson Foods presently has an average rating of "Hold" and a consensus target price of $61.25.

Tyson Foods Price Performance

NYSE:TSN opened at $56.15 on Monday. Tyson Foods, Inc. has a 52 week low of $51.85 and a 52 week high of $66.88. The company has a quick ratio of 0.78, a current ratio of 1.73 and a debt-to-equity ratio of 0.44. The stock has a market capitalization of $19.98 billion, a PE ratio of 25.52, a price-to-earnings-growth ratio of 0.77 and a beta of 0.59. The stock's 50-day moving average price is $55.52 and its 200-day moving average price is $57.48.

Tyson Foods (NYSE:TSN - Get Free Report) last posted its earnings results 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 for the quarter, compared to analysts' expectations of $13.54 billion. During the same period last year, the firm earned $0.87 EPS. The company's quarterly revenue was up 4.0% on a year-over-year basis. Tyson Foods has set its FY 2025 guidance at EPS. As a group, equities analysts expect that Tyson Foods, Inc. will post 3.8 EPS for the current fiscal year.

Tyson Foods Dividend Announcement

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

Tyson Foods declared that its Board of Directors 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 repurchase shares of its stock through open market purchases. Shares repurchase plans are generally a sign that the company's management believes its stock is undervalued.

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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