Tyson Foods (NYSE:TSN) Reaches New 52-Week Low on Analyst Downgrade

Key Points

• Tyson Foods' stock hit a new 52-week low of $51.77 after Bank of America downgraded its price target from $59.00 to $58.00, maintaining a neutral rating.
• Recently, several analysts have downgraded Tyson Foods, with Zacks Research assigning a "strong sell" rating, while the consensus rating remains a "Hold" with an average price target of $60.92.
• Tyson Foods announced a quarterly dividend of $0.50, with an annualized yield of 3.9% and initiated a stock repurchase program allowing the buyback of 43 million shares, signaling confidence in its stock value.

Tyson Foods, Inc. (NYSE:TSN - Get Free Report)'s stock price reached a new 52-week low on Thursday after Bank of America lowered their price target on the stock from $59.00 to $58.00. Bank of America currently has a neutral rating on the stock. Tyson Foods traded as low as $51.77 and last traded at $51.80, with a volume of 1708138 shares trading hands. The stock had previously closed at $52.42.

A number of other brokerages also recently commented on TSN. Weiss Ratings restated a "hold (c)" rating on shares of Tyson Foods in a report on Wednesday. Zacks Research downgraded shares of Tyson Foods from a "hold" rating to a "strong sell" rating in a research note on Wednesday, October 1st. JP Morgan Cazenove decreased their target price on shares of Tyson Foods from $61.00 to $60.00 and set a "neutral" rating on the stock in a research report on Monday, July 7th. BMO Capital Markets reduced their price objective on Tyson Foods from $62.00 to $58.00 and set a "market perform" rating on the stock in a research note on Monday, July 28th. Finally, Stephens decreased their target price on Tyson Foods from $61.00 to $55.00 in a research report on Tuesday, July 15th. Two analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $60.92.

Institutional Trading of Tyson Foods

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its holdings in Tyson Foods by 1.5% in the second quarter. Vanguard Group Inc. now owns 36,504,921 shares of the company's stock worth $2,042,085,000 after purchasing an additional 543,513 shares during the period. State Street Corp lifted its holdings in shares of Tyson Foods by 3.2% in the second quarter. State Street Corp now owns 13,990,394 shares of the company's stock worth $782,623,000 after buying an additional 439,623 shares in the last quarter. Pzena Investment Management LLC lifted its stake in Tyson Foods by 3.4% in the 2nd quarter. Pzena Investment Management LLC now owns 13,708,700 shares of the company's stock worth $766,865,000 after purchasing an additional 444,648 shares in the last quarter. Davis Selected Advisers boosted its holdings in Tyson Foods by 91.4% in the 2nd quarter. Davis Selected Advisers now owns 8,956,466 shares of the company's stock valued at $501,025,000 after purchasing an additional 4,276,884 shares during the period. Finally, Geode Capital Management LLC grew its position in shares of Tyson Foods by 1.7% during the 2nd quarter. Geode Capital Management LLC now owns 7,388,306 shares of the company's stock valued at $411,571,000 after purchasing an additional 122,055 shares in the last quarter. Institutional investors own 67.00% of the company's stock.

Tyson Foods Price Performance

The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.78 and a current ratio of 1.73. The firm has a market capitalization of $18.41 billion, a P/E ratio of 23.53, a price-to-earnings-growth ratio of 0.71 and a beta of 0.57. The business has a 50 day simple moving average of $55.37 and a two-hundred day simple moving average of $56.51.

Tyson Foods (NYSE:TSN - Get Free Report) last released its quarterly earnings results on Monday, August 4th. The company reported $0.91 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.19. Tyson Foods had a net margin of 1.45% and a return on equity of 7.49%. The business had revenue of $13.88 billion for the quarter, compared to analysts' expectations of $13.54 billion. During the same quarter in the previous year, the business posted $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, sell-side analysts expect that Tyson Foods, Inc. will post 3.8 EPS 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 $0.50 dividend. The ex-dividend date is Monday, December 1st. This represents a $2.00 dividend on an annualized basis and a yield of 3.9%. Tyson Foods's dividend payout ratio (DPR) is presently 90.91%.

Tyson Foods declared that its Board of Directors has initiated a stock repurchase program on Thursday, August 7th that permits the company to repurchase 43,000,000 outstanding shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its shares are undervalued.

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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