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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
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

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!