Shares of Tyson Foods, Inc. (NYSE:TSN) are up big this morning after the company reported better than expected earnings for the first quarter and also increased their forecasts for 2016 as a whole. Even though sales of chicken fell by about 5 percent on the quarter, the company’s operating margin rose from 12.6 percent to 13.6 percent. The company attributes this to a $60 million drop in feed costs. While this was all good news, the company didn’t report just all positive results.
For example, revenue fell in the first quarter, and it missed analysts’ estimates. Tyson Foods, Inc. (NYSE:TSN) also reduced their sales forecast for the year from $41 billion ot just $37 billion. However, the company raised their full-year earnings forecast from $3.50 to $3.65 per share up to $3.85 to $3.95 per share. Additionally profit was reported of $461 million, equating to $1.15 per share, a large increase year-over-year. Last year saw just $309 million ($0.74 per share).
The stock is up 12.24% or $6.36 following the news, hitting $58.31 per share. About 4.62M shares traded hands or up 12.68% from the average. TSN has risen 20.93% since July 1, 2015 and is currently uptrending. It has outperformed the S&P500 by 28.23%.
From a total of 4 analysts covering Tyson Foods Inc. (NYSE:TSN) stock, 2 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 50% of the ratings are positive. The highest target price is $53 while the lowest target price is $45. The mean of all analyst targets is $51 which is -12.54% below today’s ($58.31) stock price. Tyson Foods Inc. was the topic of 11 analyst reports since August 5, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets downgraded shares on January 5 to a “Sector Perform” rating. Credit Suisse maintained TSN stock in a recent report from November 24 with a “Neutral” rating.
The institutional sentiment decreased to 1.13 in Q2 2015. It’s down 0.01, from 1.14 in 2015Q2. The ratio is negative, as 63 funds sold all their Tyson Foods, Inc. shares they owned while 184 reduced their positions. 58 funds bought stakes while 220 increased their total positions. Institutions now own 254.26 million shares which is 4.09% less than the previous share count of 265.10 million in 2015Q2.
Tpg holds 11.79% of its total portfolio in Tyson Foods, Inc., equating to 3.53 million shares. Mountain Lake Investment Management Llc owns 240,000 shares representing 8.33% of their total US portfolio. Moreover, Seminole Management Co. Inc. has 7.11% of their total portfolio invested in the company, equating to 3.69 million shares. The New York-based Lomas Capital Management Llc has a total of 6.22% of their portfolio invested in the stock. Caerus Global Investors Llc, a New York-based fund reported 49,497 shares owned.
Tyson Foods, Inc., is a food production company. The company has a market cap of $19.05 billion. The Company’s activities are conducted in five divisions: Chicken, Beef, Pork, Prepared Foods and International. It has 19.78 P/E ratio. Chicken, includes domestic activities related of raising and processing live chickens into fresh, frozen and value-added chicken products, and sales of allied products.