Tyson Foods Inc. (NYSE: TSN) still held a 0.79 percent uptick despite news of a bird flu outbreak in Tennessee that have originated in a farm contracted by the chicken meat giant.
Chicken breeder flocks in a farm contracted by the company has been detected of a bird flu strain just recently with the 73,500 birds that tested positive of the highly pathogenic H7 avian influenza (HPAI) to be culled immediately so as to avoid further contamination and spread of the virus within the food system, as assured on Sunday by the US government and the officials of the company.
Also according to the US Department of Agriculture, the incident was the first confirmed case for the year that concerns commercial poultry. The state government also remarked how this was the first time a case of HPAI has been reported in Tennessee.
Tyson Foods Undaunted
Tyson Foods announced to the public that it is already in coordination with the state and federal officials to control the bird flu case by exterminating the chickens on the said farm in Lincoln County. Authorities iterated that the case was more of animal health issue than a food or human health concern which may cause anxiety to consumers.
Also, all flocks that are found within a six-mile radius of the farm will be tested and unless they test negative for the virus, these live poultry samples will not be allowed to be transported elsewhere.
Despite the news, Tyson Foods, the biggest chicken meat producer in the United States, does not worry that its chicken business may be in for a disruption. Operations are still ongoing to meet customer needs.
Although the risk of transmitting the avian flu virus to humans is relatively low, the facility where the the flock that tested positive was found was quarantined by the state’s health authorities along with 30 other poultry farms within the said six-mile radius.
So far, no other flock has been showing signs of the virus but the Tennessee Department of Health and the Department of Agriculture have agreed to check the health even of the workers on the site in case they have contracted the virus with their contact with the birds.
Tyson Foods Still Up in Trading Hours But Posed Negative After Closing Bell
Latest session for Tyson Foods saw the company still keeping its uptick with a 0.79 percent surge at 63.60 (2). However, shares dipped 1.73 percent in the after-hours trading which saw the stock price lower itself in its new position at 62.50.
The trading day saw the stock reach a high of 63.64 and a low of 62.71. It has a 52-week low of 55.72 and a 52-week high of 77.05 with a current market capitalization of $22.26 billion and an average volume of 2.82 million. The stock’s price to earnings ratio is situated at 12.63 with earnings per share of 5.04. The dividend yield is at 1.42 percent.
Tyson Foods’ 14-day Relative Strength Index sits at the median level of 50.19. Its recent Q4 reports (1) buoyed the stock amidst bird flu outbreak worries.
However, with the sudden dip in the trading after the closing bell, it may be highly likely that the onset of an outbreak will have a dragging effect on the stock for the next trading sessions to come.
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