A package of chicken meat from Tyson Foods Inc. arranged to be photographed in Tiskilwa, Illinois.
Daniel Acker | Bloomberg | beautiful pictures
Tyson Foods touched a 52-week low on Friday for the third consecutive day of declines, a sign that investors are losing confidence in the company amid growing margin pressure and operational problems. in this year.
The food processor’s stock has fallen more than 4% this week to trade around $61 a share, its lowest since November 2020 and below a 52-week high of 100.72 dollars, recorded in February. The stock is down about 30% by 2022.
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Investment firm Piper Sandler said late Wednesday that it is becoming “more cautious” towards the company as recent months have seen a drop in the company’s profits due to costs. higher livestock production and lower retail prices for meat.
Falling beef and chicken prices in recent months coupled with rising feed costs have put more pressure on the livestock industry.
According to a report, staff shortages and chick hatching problems have made it difficult for Tyson to fulfill orders. The Wall Street Journal reported in July. Tyson did not immediately respond to a request for comment.
Flute machine expects a three-year average earnings decline of 3.9% from 2023 to 2025. The company maintains a “hold” rating on the stock with a price target of $68 per share.
Tyson’s decline extended the stock’s downturn in the second half of the year.
The company posted a strong first quarter with revenue growing more than 23% to nearly $13 billion, exceeding the company’s own expectations, and nearly doubling profits.
But Piper Sandler downgraded Tyson’s stock in May, warning budget-conscious consumers will seek cheaper brands of meat as inflation pushes prices up.
Although the prices of meat, poultry, fish and eggs fell month-on-month in November, according to consumer price index inflation report, categories still increased by nearly 7% compared to last year.
Barclays and Argus Research also downgraded Tyson this year, citing similar concerns. At least seven major Wall Street companies have “hold” or “sell” ratings on the stock, according to research compiled by FactSet.
– CNBC Michael Bloom contributed to this report.
