Tyson Insiders Bought Up the Beaten-Down Stock

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Tyson

Foods stock dove earlier this month to multiyear lows after the big meat supplier reported a disappointing fiscal second quarter and cut guidance. Tyson insiders, led by President and CEO Donnie King, bought $2.3 million of the beaten-down shares on the open market, the first insider purchases since December 2018.

Tyson (ticker: TSN) is facing headwinds in chicken, beef, and pork. “While the current protein market is challenging, we…are bullish on our long-term outlook,” King said in the earnings release.

Underlining that bullishness, King paid $500,422 on May 11 for 10,350 Tyson shares, an average price of $48.35 each. He now owns 195,478 Tyson shares in a personal account and another 7,688 shares through an employee stock-purchase plan, according to a form King filed with the Securities and Exchange Commission.

Tyson didn’t respond to a request to make King or the other executives available for comment on their stock purchases.

Vice Chairman Kevin McNamara paid $1 million on May 12 for 20,500 Tyson shares, at an average price of $48.92 each. He now owns 115,670 shares.

Another significant buyer, Wes Morris, group president of poultry, paid $451,061 on May 10 for 9,362 Tyson shares, at an average price of $48.18 each. He now owns 42,759 shares.

Johanna Söderström, Tyson’s chief people officer, paid $246,109 on May 12 for 5,000 shares. She now owns 32,847 Tyson shares.

Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.