Zacks Research Downgrades Tyson Foods (NYSE:TSN) to Strong Sell

Key Points

• Zacks Research downgraded Tyson Foods from “hold” to “strong sell,” while the broader analyst consensus remains “hold” with a $70.67 price target.
• Tyson’s shares opened at $57.98, near their 52-week low, after the company reported quarterly revenue of $13.87 billion—below expectations—while earnings per share matched estimates at $0.99.
• Institutional investors remain heavily invested, owning approximately 67% of Tyson Foods, with several major funds increasing their positions.

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 Thursday,Zacks.com reports.

Other equities analysts have also issued research reports about the company. Weiss Ratings lowered Tyson Foods from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, July 9th. Bank of America decreased their price target on shares of Tyson Foods from $70.00 to $68.00 and set a "neutral" rating on the stock in a report on Thursday, July 2nd. Wall Street Zen downgraded shares of Tyson Foods from a "buy" rating to a "hold" rating in a research note on Saturday, June 20th. Piper Sandler restated an "overweight" rating and issued a $78.00 target price (down from $80.00) on shares of Tyson Foods in a research report on Thursday, June 18th. Finally, BMO Capital Markets reaffirmed an "outperform" rating on shares of Tyson Foods in a research note on Tuesday, May 5th. Four analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $70.67.

Tyson Foods Stock Down 1.0%

Shares of NYSE TSN opened at $57.98 on Thursday. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.70 and a current ratio of 1.43. Tyson Foods has a 52 week low of $50.56 and a 52 week high of $69.48. The stock has a market capitalization of $20.42 billion, a P/E ratio of 35.79, a PEG ratio of 1.25 and a beta of 0.40. The stock's fifty day moving average is $57.92 and its 200 day moving average is $61.80.

Tyson Foods (NYSE:TSN - Get Free Report) last issued its quarterly earnings results on Monday, August 3rd. The company reported $0.99 earnings per share for the quarter, hitting analysts' consensus estimates of $0.99. Tyson Foods had a net margin of 1.03% and a return on equity of 7.77%. The company had revenue of $13.87 billion during the quarter, compared to the consensus estimate of $14.07 billion. During the same quarter in the prior year, the firm posted $0.91 EPS. The firm's quarterly revenue was down .1% on a year-over-year basis. Sell-side analysts forecast that Tyson Foods will post 3.95 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Tyson Foods

Institutional investors and hedge funds have recently made changes to their positions in the stock. Norges Bank acquired a new stake in shares of Tyson Foods during the fourth quarter worth $308,297,000. Davis Selected Advisers lifted its stake in shares of Tyson Foods by 28.8% in the 4th quarter. Davis Selected Advisers now owns 12,827,540 shares of the company's stock valued at $751,951,000 after purchasing an additional 2,865,413 shares during the period. Life Cycle Investment Partners Ltd bought a new stake in shares of Tyson Foods during the 4th quarter valued at about $165,220,000. Pzena Investment Management LLC increased its holdings in Tyson Foods by 12.1% in the first quarter. Pzena Investment Management LLC now owns 17,155,713 shares of the company's stock worth $1,099,167,000 after purchasing an additional 1,845,200 shares in the last quarter. Finally, AQR Capital Management LLC lifted its stake in Tyson Foods by 34.4% in the third quarter. AQR Capital Management LLC now owns 6,726,796 shares of the company's stock valued at $363,852,000 after buying an additional 1,720,009 shares during the period. Institutional investors and hedge funds own 67.00% of the company's stock.

About Tyson Foods

Tyson Foods, Inc NYSE: TSN is a multinational food company primarily engaged in the production, processing and marketing of protein-based and prepared food products. Founded in 1935 and headquartered in Springdale, Arkansas, the company is one of the world's largest processors of chicken, beef and pork. Its operations span live animal procurement and farming relationships through slaughter, further processing and distribution, supplying raw protein and value-added prepared foods to retail, foodservice and industrial customers.

The company's product portfolio covers fresh and frozen meats, branded and private-label prepared foods, and a range of value-added items such as ready-to-eat and ready-to-cook meals, snack and sandwich meats.

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