Insider Trading Report: Tyson Foods (TSN)

Wes Morris, a Group President at Tyson Foods (TSN), recently bought 10,362 shares. The buy increased his holdings by 31 percent, and came to a total cost of $499,431.

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  • He was joined by another Group President who bought 2,040 shares, paying just over $99,700 to do so. These buys are the first insider buys at the company over the past two years. Generally, company executives have been slight sellers of shares, usually following the exercise of stock options.

    Overall, company insiders own 2.3 percent of shares.

    The livestock and poultry producer has seen shares drop nearly in half over the past year. Revenues have been flat, and profit margins have dropped to under 3 percent.

    The most recent earnings miss last week took the stock to not just to 52-week lows, but to prices last seen in 2015.

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  • Action to take: The recent insider buying is promising. And shares are discounting future growth at less than 8 times earnings. However, shares may still not be done selling off yet. Investors may want to buy a small stake now, and grab a 3.9 percent dividend, while using further drops to add to the position.

    For traders, the trend is still down. The October $45 puts, last going for about $1.95, offer mid-double-digit returns if shares continue their current trend.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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