The company's fiscal third-quarter earnings topped analysts' expectations
The shares of Tyson Foods, Inc (NYSE:TSN) are up 3% at $63.30 at last check, after the company's impressive fiscal third-quarter earnings beat. Though announcing revenue below estimates, Tyson Foods reported profits of $1.40 per share, higher than the 94 cents anticipated by analysts. The firm did add that it sees COVID-19 increasing operating costs and slow sales volumes into the next year. Separately, Tyson named President Dean Banks as its new CEO.
With support at its 20-day moving average since mid-July, the shares of Tyson have been trading mostly sideways, though today's pop has the equity breaking out atop recent pressure at the 120-day moving average for the first time since January. Despite today's positive price action, the equity is still down 30.8% year-to-date.
On the analyst front, three out of the eight in coverage sport a "strong buy" rating, while the remaining five stay hesitant at a "hold." Meanwhile, the 12-month consensus price target of $72.74 is an 15% premium to current levels.
The options pits have been looking bullish ahead of today's event, with 3.49 calls bought for every put during the last 10 weeks at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 84% of readings from the past year, suggesting a healthy appetite for long calls of late.
That said, speculating on TSN's next move with options could be a prudent play. The stock's Schaeffer's Volatility Index (SVI) of 44% stands higher than just 17% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment.