Share Buyback Program Declared by Tyson Foods (NYSE:TSN)

Key Points

• Tyson Foods has approved a stock repurchase plan to buy back 43 million shares, signaling the management believes the shares are currently undervalued.
• The company recently reported quarterly earnings of $0.91 EPS, exceeding analyst expectations of $0.72 and marking a 4% year-over-year revenue increase to $13.88 billion.
• Tyson Foods will pay a quarterly dividend of $0.50 per share on December 15th, representing a 3.6% yield and a payout ratio of 90.91%.

Tyson Foods (NYSE:TSN - Get Free Report) announced that its Board of Directors has approved a stock repurchase plan on Thursday, August 7th, RTT News reports. The company plans to repurchase 43,000,000 outstanding shares. This repurchase authorization permits the company to reacquire shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Tyson Foods Trading Up 0.4%

NYSE TSN traded up $0.22 on Thursday, hitting $56.29. 2,407,225 shares of the company were exchanged, compared to its average volume of 2,824,607. Tyson Foods has a twelve month low of $51.85 and a twelve month high of $66.88. The company's 50 day moving average price is $54.86 and its 200-day moving average price is $57.55. The firm has a market capitalization of $20.05 billion, a P/E ratio of 25.59, a price-to-earnings-growth ratio of 0.77 and a beta of 0.59. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.73 and a quick ratio of 0.69.

Tyson Foods (NYSE:TSN - Get Free Report) last posted its quarterly earnings data on Monday, August 4th. The company reported $0.91 EPS for the quarter, topping analysts' consensus estimates of $0.72 by $0.19. Tyson Foods had a net margin of 1.45% and a return on equity of 7.49%. The firm had revenue of $13.88 billion during the quarter, compared to analyst estimates of $13.54 billion. During the same quarter last year, the business posted $0.87 EPS. The company's revenue was up 4.0% on a year-over-year basis. Analysts predict that Tyson Foods will post 3.8 earnings per share for the current fiscal year.

Tyson Foods Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Shareholders of record on Monday, December 1st will be paid a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 3.6%. Tyson Foods's dividend payout ratio (DPR) is presently 90.91%.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the company. Stephens decreased their price objective on Tyson Foods from $61.00 to $55.00 in a report on Tuesday, July 15th. Sanford C. Bernstein cut shares of Tyson Foods from an "outperform" rating to a "market perform" rating and cut their price objective for the company from $74.00 to $59.00 in a research note on Wednesday, July 23rd. JPMorgan Chase & Co. lowered their target price on shares of Tyson Foods from $63.00 to $61.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 6th. Wall Street Zen lowered shares of Tyson Foods from a "buy" rating to a "hold" rating in a research note on Tuesday, May 6th. Finally, JP Morgan Cazenove dropped their target price on Tyson Foods from $61.00 to $60.00 and set a "neutral" rating on the stock in a report on Monday, July 7th. Thirteen investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, Tyson Foods presently has an average rating of "Hold" and an average price target of $61.33.

About Tyson Foods

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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