Tyson Stock Unpredictable

The ongoing lawsuit by hog farmers against Tyson Foods Inc. and the misfortune of one of Tyson’s competitors has had shares of the Springdale company bouncing up and down over the last two months.

Shares of Tyson Foods closed at $12.95 on Sept. 17, less than a week after 80 hog farmers filed suit. Shares dipped steadily, reaching $9.27 on Oct. 10.

But on Oct. 13, Pilgrim’s Pride Corp. of Pittsburgh, Texas, issued the largest meat recall in United States history and shares of Tyson Foods began climbing. Pilgrim’s Pride is the the second biggest poultry producer in the nation behind Tyson Foods. Pilgrim’s Pride voluntarily recalled 27.4 million pounds pounds of fresh and frozen ready-to-eat turkey and chicken products over concerns about possible listeria contamination. The nationwide recall covers meat processed at a plant in Franconia, Pa.

The recall came as federal officials investigated a listeria outbreak that has caused at least 23 deaths and 120 illnesses in eight Northeastern states.

Shares of Tyson Foods opened Oct. 14 at $10, but climbed $1.30 to $11.30 in the week following the Pilgrim’s Pride recall.