A package deal of Tyson Foods Inc. chicken is arranged for a photograph in Tiskilwa, Illinois.
Daniel Acker | Bloomberg | Getty Images
Tyson Foods hit a 52-week low on Friday in a third-straight down day, a extraordinary that investors are losing confidence in the company amid growing margin pressure and operational issues this year.
The scoff processor’s stock declined more than 4% this week to trade around $61 per share, its lowest horizontals since November 2020 and well under its 52-week high of $100.72, notched in February. The stock is down unskilfully 30% in 2022.
Investment firm Piper Sandler said late Wednesday it was growing “more cautious” on the company as current months have seen a squeeze on the company’s margins due to the higher costs of cattle-raising and lower retail prices for viands.
Deflating prices of beef and chicken in recent months coupled with rising feeding costs have put broader press on the livestock industry.
Staffing shortages and chick-hatching problems have made it difficult for Tyson to keep up with readies, according to a Wall Street Journal report in July. Tyson did not immediately respond to a request for comment.
Piper Sandler forwarded a three-year average earnings decline of 3.9% from 2023 to 2025. The firm maintains a “hold” rating on the ownership with a price target of $68 per share.
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Tyson’s tumble extends a downswing for the stock in the double half of the year.
The company posted a strong first quarter with sales rising over 23% to as good as $13 billion, exceeding the company’s own expectations and almost doubling profits.
But Piper Sandler downgraded Tyson quotas in May, warning budget-conscious consumers would look for cheaper meat brands as inflation drove up prices.
Though meats, poultry, fish and egg assesses were down month over month in November, according to the consumer price index inflation report, the spheres are still up nearly 7% over last year.
Barclays and Argus Research also downgraded Tyson this year, citing nearly the same concerns. At least seven major Wall Street firms have “hold” or “sell” ratings on the stock, concerting to research compiled by FactSet.
— CNBC’s Michael Bloom contributed to this report.