A Tyson Board Member Is Bullish On Meats

Page 1 of 2

According to a filing with the SEC, Jim Kever directly purchased 10,000 shares of Tyson Foods, Inc. (NYSE:TSN) on February 6th at an average price of $23.37 per share. This gives Kever, who sits on Tyson’s Board of Directors, almost 68,000 shares held directly (his spouse and children own a small number of shares) so this recent buy represents a significant percentage increase in his holdings. We track insider purchases because on average stocks bought by insiders tend to outperform the market (read our analysis of studies on insider trading). The effect isn’t very large, but we still think that it is worthwhile to treat insider purchases similarly to the results of a stock screen: don’t follow them blindly but review the stock and do more research if it seems like a good prospect.

Tyson’s stock price is up 17% year to date following an earnings beat for the quarter ending December 2012. During that quarter, increased only slightly but improved operating margins and lower interest expenses helped the company in experiencing an 11% rise in net income. On a segment basis, poor performance in pork was offset by strong improvements in chicken and higher margins on beef. During the quarter, beef, chicken, and pork were responsible for 41%, 35%, and 16% of revenue respectively with the balance of sales coming from prepared foods.

Tyson’s trailing P/E is 14, which we’d say is an attractive earnings multiple for a company which just reported a double-digit earnings growth rate. Wall Street analysts expect lighter growth this year, and then an acceleration for the fiscal year ending in September 2014 resulting in a forward P/E of 10. With the trailing EBITDA multiple also looking good (at 5.5x), we would say that Tyson Foods, Inc. may be worth considering as a value stock given its decent multiple and its moderate growth over the last year.

David Harding

Cliff Asness’s AQR Capital Management increased its stake in Tyson Foods, Inc. by 43% during the third quarter of 2012, reporting a position of 3.8 million shares in its 13F filing for the quarter (see more stock picks from Cliff Asness). Winton Capital Management, which is managed by David Harding, was also buying shares and closed September with 1.5 million shares in its portfolio (find Harding’s favorite stocks). Adage Capital Management had a small position at the beginning of July and increased it to 3.7 million shares by the end of the quarter (check out more stocks Adage was buying); that fund is co-managed by Phil Gross and Robert Atchinson, who had previously worked at Harvard Management.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!