As of last check, share of Pilgrim’s Pride Corporation (PPC) had risen 19.71% to $27.15 in pre-market trading. PPC stock closed last session at $22.68, down -1.61% or -$0.37. Throughout the day, shares of PPC traded between $22.565 and $23.06. A total of 0.34 million shares of PPC stock traded during the session, a volume that was lower than the company’s 50-day daily volume of 0.54 million and lower than its Year-to-date volume of 0.55 million.

In the last 12 months, PPC stock has grown 38.80%, and in the last week, it has grown 7.95%. PPC stock has increased by 4.66% in the last 6 months, and over the last 3 months, it has decreased by -9.03%. Thus far this year, PPC stock is up 15.66%. PPC stock surged premarket when news breaks that a Brazilian firm plans to take PPC private.

Who is trying to take over PPC?

Around 54,700 Pilgrim’s employees work in protein processing plants and prepared foods facilities in 14 U.S. states, Puerto Rico, Mexico, the United Kingdom, and continental Europe. Retailers and foodservice distributors are PPC’s primary distribution channels.

It is estimated that the largest meatpacker in the world, JBS, is planning to bid for the remaining common shares of its US-based subsidiary Pilgrim’s Pride Corporation so that the company will be delisted on NYSE. The board of JBS, based in Brazil, has approved an offer letter to be sent to PPC to acquire the remaining shares in circulation for $26.50 each, unveiled the company in a securities filing.

Through subsidiaries, JBS already owns 80.21 percent of PPC, which processes chicken and pork sold throughout North America and Europe. 2009 saw the Brazilian firm purchase the majority stake in PPC. A special committee of PPC board members along with a majority of voting shares in the company must approve the acquisition of the remaining shares in circulation.

PPC’s quarterly performance:

Pilgrim’s Pride recently reported its financial results for the second quarter of 2021, highlights of which are as follows:

• Net Sales for PPC hit $3.64 billion, an increase of 29% from the prior year.
• According to GAAP, PPC’s consolidated Operating Income margin was (3.4)% with GAAP Operating Income margins of (10.0)% in the US, 17.5% in Mexico and 2.3% in Europe.
• Margin of adjusted US Operating Income was 7.8%.
• PPC reported a GAAP Net Loss of (166.7) million.
• For PPC, adjusted net income was $153.8 million or adjusted earnings per share of $0.63.
• In adjusted EBITDA, PPC generated $371.6 million, or a 10.2% margin, 231.2% higher than a year ago.

Improved results for recovering growth:

Pilgrim’s Pride (PPC) reported a modest increase in retail sales in the second quarter, while more foodservice locations were opened following a modest increase in store visits. While input costs and product mix issues related to continuing, though improving, labor challenges hindered PCC’s US business; it produced a solid operational performance. Commodity pricing for PPC’s big bird business has consistently remained close to or above historical average ranges.