SPRINGDALE, Ark.—Noel W. White, a director at Tyson Foods , Inc. (NYSE:TSN), recently sold 30,000 shares of the company's Class A Common Stock. The shares were sold at an average price of $64.8883 per share, with transactions occurring on November 18, 2024, at prices ranging from $64.71 to $65.17. The total value of the sale amounted to approximately $1.95 million.
Following this transaction, White holds 1,115 shares indirectly through the White Charitable Trust. Additionally, he directly owns 36,178.909 shares, which include shares acquired through Tyson Foods' dividend reinvestment plan.
In other recent news, Tyson Foods Inc (NYSE:TSN). has witnessed a series of price target adjustments following its Q4 2024 earnings. Piper Sandler raised its price target from $50.00 to $58.00, maintaining an Underweight rating due to concerns about the near-term outlook for cattle costs. BMO Capital Markets also increased its price target from $60.00 to $62.00, retaining a Market Perform rating despite Tyson's strong earnings, due to lingering risks for chicken margins beyond the first quarter of FY 2025. Stephens raised its target to $60, citing strong chicken sales, while Barclays (LON:BARC) reaffirmed an Overweight rating, maintaining a $76.00 target.
The revisions were prompted by Tyson's Q4 earnings, which surpassed expectations, primarily due to better-than-anticipated margins in its Beef and Chicken segments. Tyson's FY 2025 guidance projects positive volume in both Chicken and Prepared Foods segments, despite potential challenges in the beef segment. Piper Sandler and BMO Capital have revised their EPS estimates for Tyson, reflecting the company's performance and outlook.
Moreover, Tyson recently opened a new fully cooked plant in Danville, Virginia, indicating strong demand for prepared foods. Barclays slightly reduced its adjusted operating income forecast for Tyson in 2025 due to an anticipated $100 million investment in advertising and marketing. However, its projections remain higher than Tyson's guidance, especially for the Chicken segment, suggesting potential for Tyson to exceed these expectations. These developments mark recent shifts in the investment landscape for Tyson Foods.
InvestingPro Insights
As Noel W. White reduces his stake in Tyson Foods, investors may find value in examining the company's current financial position and market performance. According to InvestingPro data, Tyson Foods boasts a market capitalization of $22.62 billion and a P/E ratio of 28.12, suggesting a premium valuation compared to some industry peers.
Despite the recent insider sale, Tyson Foods has demonstrated its commitment to shareholder returns. An InvestingPro Tip highlights that the company has raised its dividend for 11 consecutive years, with a current dividend yield of 3.1%. This consistent dividend growth may appeal to income-focused investors.
Another InvestingPro Tip indicates that Tyson Foods is trading at a low P/E ratio relative to its near-term earnings growth, potentially signaling an attractive entry point for value investors. However, it's worth noting that the company's gross profit margin stands at a modest 7.42%, which could be a point of concern for those analyzing operational efficiency.
For a more comprehensive analysis, InvestingPro offers additional insights, with 7 more tips available for Tyson Foods. These tips could provide valuable context for investors considering the stock's potential in light of recent insider activity and market conditions.
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