Bank of America Corp. Downgrades Tyson Foods to Neutral (TSN)
Tyson Foods (NYSE:TSN) was downgraded by analysts at Bank of America Corp. from a “buy” rating to a “neutral” rating in a research report issued to clients and investors on Monday, TheFlyOnTheWall.com reports. They currently have a $32.00 price target on the stock, down from their previous price target of $33.00. Bank of America Corp.’s target price would indicate a potential upside of 1.65% from the company’s current price.
The analysts wrote, “In our view, this is likely to cause industry margins to peak sooner than we expected. Recent supply indicators including pullet placements (9-month supply indicator) and egg sets (10-week indicator) have increased faster than expected, with pullet placements increasing 8% y/y in July, following a 3% increase in June. This will result in a significant increase in production in spring and summer 2014. The industry does not appear to be making its seasonal cuts for fall when demand declines either, as egg sets have increased 5% y/y over the last 2 weeks and averaged 3.5% y/y increase over the last 10 weeks. While chicken producers are expected to benefit from a significant decrease in grain costs following a large US harvest, the increased production will weigh on pricing and limit upside to margins, in our view.”
TSN has been the subject of a number of other recent research reports. Analysts at DA Davidson reiterated a “buy” rating on shares of Tyson Foods in a research note to investors on Monday, August 19th. They now have a $40.00 price target on the stock. Separately, analysts at BMO Capital Markets raised their price target on shares of Tyson Foods from $31.00 to $34.00 in a research note to investors on Tuesday, August 6th. They now have an “outperform” rating on the stock. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Tyson Foods in a research note to investors on Tuesday, August 6th. They now have a $31.00 price target on the stock.
One analyst has rated the stock with a sell rating, six have assigned a hold rating and eight have given a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus target price of $31.00.
Tyson Foods (NYSE:TSN) traded down 6.04% during mid-day trading on Monday, hitting $29.58. 5,656,072 shares of the company’s stock traded hands. Tyson Foods has a one year low of $14.91 and a one year high of $32.40. The stock’s 50-day moving average is $28.86 and its 200-day moving average is $25.58. The company has a market cap of $10.418 billion and a price-to-earnings ratio of 16.27.
Tyson Foods (NYSE:TSN) last released its earnings data on Monday, August 5th. The company reported $0.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.60 by $0.09. The company had revenue of $8.73 billion for the quarter, compared to the consensus estimate of $8.65 billion. During the same quarter in the previous year, the company posted $0.50 earnings per share. The company’s revenue for the quarter was up 5.7% on a year-over-year basis. Analysts expect that Tyson Foods will post $2.22 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Friday, December 13th. Stockholders of record on Friday, November 29th will be given a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a yield of 0.64%. The ex-dividend date of this dividend is Tuesday, November 26th.
In other Tyson Foods news, VP Donnie King unloaded 25,705 shares of the company’s stock in a transaction dated Tuesday, August 20th. The shares were sold at an average price of $32.02, for a total transaction of $823,074.10. Following the sale, the vice president now directly owns 60,469 shares in the company. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.
Tyson Foods, Inc and its subsidiaries is a meat protein companies and food production company. The Company produces, distributes and markets chicken, beefs, pork, prepared foods and related allied products.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.