Tyson Foods (NYSE:TSN) Downgraded to "Strong Sell" Rating by Zacks Research

Key Points

• Tyson Foods has been downgraded by Zacks Research from a "hold" rating to a "strong sell" rating.
• JP Morgan Cazenove lowered their price target for Tyson Foods from $61.00 to $60.00, while Sanford C. Bernstein also downgraded their rating and set a target of $59.00.
• The company's board has authorized a stock repurchase program to buy back 43 million shares, a move often seen as a sign of undervaluation.

Tyson Foods (NYSE:TSN - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Wednesday,Zacks.com reports.

A number of other research firms also recently weighed in on TSN. JP Morgan Cazenove decreased their price objective on Tyson Foods from $61.00 to $60.00 and set a "neutral" rating on the stock in a report on Monday, July 7th. The Goldman Sachs Group initiated coverage on Tyson Foods in a report on Monday, June 23rd. They set a "buy" rating and a $67.00 price objective on the stock. Sanford C. Bernstein downgraded Tyson Foods from an "outperform" rating to a "market perform" rating and decreased their price objective for the company from $74.00 to $59.00 in a report on Wednesday, July 23rd. BMO Capital Markets decreased their price objective on Tyson Foods from $62.00 to $58.00 and set a "market perform" rating on the stock in a report on Monday, July 28th. Finally, Bernstein Bank cut shares of Tyson Foods to a "market perform" rating and cut their target price for the company from $74.00 to $59.00 in a research note on Wednesday, July 23rd. Two equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Tyson Foods presently has a consensus rating of "Hold" and an average price target of $61.25.

Tyson Foods Stock Down 0.1%

TSN stock opened at $54.44 on Wednesday. Tyson Foods has a twelve month low of $51.85 and a twelve month high of $65.95. The company has a market cap of $19.37 billion, a PE ratio of 24.74, a price-to-earnings-growth ratio of 0.71 and a beta of 0.57. The business's 50-day simple moving average is $55.34 and its 200 day simple moving average is $56.70. The company has a quick ratio of 0.78, a current ratio of 1.73 and a debt-to-equity ratio of 0.44.

Tyson Foods (NYSE:TSN - Get Free Report) last released its earnings results on Monday, August 4th. The company reported $0.91 earnings per share for the quarter, topping 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 business had revenue of $13.88 billion for the quarter, compared to the consensus estimate of $13.54 billion. During the same period last year, the business earned $0.87 earnings per share. The firm'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. On average, research analysts anticipate that Tyson Foods will post 3.8 earnings per share for the current year.

Tyson Foods declared that its board has authorized a stock repurchase program on Thursday, August 7th that authorizes the company to repurchase 43,000,000 shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of TSN. Norges Bank bought a new position in Tyson Foods in the 2nd quarter worth approximately $246,055,000. Davis Selected Advisers grew its holdings in Tyson Foods by 91.4% during the 2nd quarter. Davis Selected Advisers now owns 8,956,466 shares of the company's stock worth $501,025,000 after acquiring an additional 4,276,884 shares during the period. AQR Capital Management LLC grew its holdings in Tyson Foods by 776.8% during the 1st quarter. AQR Capital Management LLC now owns 2,842,627 shares of the company's stock worth $180,933,000 after acquiring an additional 2,518,416 shares during the period. Pacer Advisors Inc. grew its holdings in Tyson Foods by 4,207.2% during the 1st quarter. Pacer Advisors Inc. now owns 1,635,237 shares of the company's stock worth $104,344,000 after acquiring an additional 1,597,272 shares during the period. Finally, Invesco Ltd. grew its holdings in Tyson Foods by 36.0% during the 2nd quarter. Invesco Ltd. now owns 5,864,131 shares of the company's stock worth $328,039,000 after acquiring an additional 1,550,812 shares during the period. Institutional investors own 67.00% of the company's stock.

Tyson Foods Company 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.