Five executives of Tyson Foods Inc. recently sold off more than $29 million worth of shares in open market transactions that are tracked by the Securities and Exchange Commission.
Tyson shares closed Monday (Sept. 16) at $30.30, up 5 cents on the day. Over the past 52 weeks Tyson shares have rallied from a low price of $15.87 to a high $32.40 hit recently.
Economists predict beef processors will see tighter margins through next year amid a shrinking supply of cattle and tepid beef demand. Tyson is a multiple protein processor but beef still accounts for a major part of the company’s total profits in a year’s time.
At the same time chicken supplies are increasing rapidly, which is expected to have a dampening effect on wholesale prices for processors, according to analysts.
Ken Kimbo, chief human resource officer at Tyson Foods, got the ball rolling early last month when he sold 10,000 shares of Tyson stock at $30.77 in the open market. Gross proceeds totaled $307,700.
CEO Donnie Smith then cashed in 5,780 shares of Tyson Foods stock for $31.90 on Aug. 14. This transaction totaled $184,383 in gross proceeds, according to the federal filing.
Donnie King, senior VP of poultry and prepared foods at Tyson, sold a total of 14,295 shares of company stock for $30 on Sept. 11. King’s proceeds grossed $428,850.
Jim Lochner, chief operating officer at Tyson, sold 864,001 shares of Tyson Foods on Sept. 11. The proceeds grossed $25.9 million with a per share price of $30.02.
Noel White, senior VP of fresh meats at Tyson, sold 75,000 shares of Tyson Foods stock on Sept. 12. White garnered $2.265 million in his open market sale.
The Tyson Limited Partnership, operated by the estate the Don Tyson, disposed of 1 million shares of Tyson Foods Class A stock last week. The shares were not sold into the open market, according to the filing. The Tyson Limited Partnership still owns 2 million shares of Class A stock and 70 million shares of Class B, restricted stock.