Federated Hermes Inc. Decreases Stock Holdings in Tractor Supply Company (NASDAQ:TSCO)

Key Points

• Federated Hermes Inc. has reduced its stake in Tractor Supply Company by 9.8%, selling 96,391 shares to own approximately 0.17% of the company, valued at about $48.7 million.
• Multiple institutional investors have significantly increased their holdings in Tractor Supply, with Capital World Investors raising its position by 403.7% to own over 19 million shares.
• Despite a recent earnings report that beat estimates, Tractor Supply's shares are currently trading down 1.3% and the company has also stated a reduction in its quarterly dividend payout.

Federated Hermes Inc. reduced its stake in shares of Tractor Supply Company (NASDAQ:TSCO - Free Report) by 9.8% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 884,691 shares of the specialty retailer's stock after selling 96,391 shares during the quarter. Federated Hermes Inc. owned about 0.17% of Tractor Supply worth $48,746,000 as of its most recent SEC filing.

Other large investors also recently added to or reduced their stakes in the company. N.E.W. Advisory Services LLC purchased a new position in shares of Tractor Supply during the first quarter valued at approximately $54,000. Meeder Advisory Services Inc. boosted its position in shares of Tractor Supply by 5.7% during the first quarter. Meeder Advisory Services Inc. now owns 9,371 shares of the specialty retailer's stock valued at $516,000 after buying an additional 504 shares during the period. Mackenzie Financial Corp boosted its position in shares of Tractor Supply by 11.8% during the first quarter. Mackenzie Financial Corp now owns 137,232 shares of the specialty retailer's stock valued at $7,561,000 after buying an additional 14,467 shares during the period. Richards Merrill & Peterson Inc. boosted its position in shares of Tractor Supply by 1.5% during the first quarter. Richards Merrill & Peterson Inc. now owns 16,305 shares of the specialty retailer's stock valued at $898,000 after buying an additional 245 shares during the period. Finally, First National Advisers LLC boosted its position in shares of Tractor Supply by 230.6% during the first quarter. First National Advisers LLC now owns 20,198 shares of the specialty retailer's stock valued at $1,113,000 after buying an additional 14,088 shares during the period. 98.72% of the stock is owned by institutional investors.

Tractor Supply Stock Performance

TSCO stock traded up $0.68 during midday trading on Friday, reaching $57.63. The stock had a trading volume of 5,505,274 shares, compared to its average volume of 6,097,455. The stock has a market cap of $30.56 billion, a PE ratio of 28.28, a P/E/G ratio of 2.93 and a beta of 0.75. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.16 and a current ratio of 1.28. The firm has a fifty day simple moving average of $53.97 and a two-hundred day simple moving average of $53.52. Tractor Supply Company has a 52-week low of $46.85 and a 52-week high of $63.99.

Tractor Supply (NASDAQ:TSCO - Get Free Report) last announced its quarterly earnings results on Thursday, July 24th. The specialty retailer reported $0.81 earnings per share for the quarter, topping the consensus estimate of $0.80 by $0.01. The company had revenue of $4.44 billion for the quarter, compared to the consensus estimate of $4.40 billion. Tractor Supply had a return on equity of 46.83% and a net margin of 7.18%. The firm's revenue for the quarter was up 4.5% compared to the same quarter last year. During the same period last year, the firm earned $3.93 EPS. As a group, equities research analysts anticipate that Tractor Supply Company will post 2.17 EPS for the current year.

Tractor Supply Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 10th. Stockholders of record on Wednesday, May 28th were given a dividend of $0.23 per share. The ex-dividend date was Wednesday, May 28th. This represents a $0.92 dividend on an annualized basis and a dividend yield of 1.6%. Tractor Supply's dividend payout ratio (DPR) is 45.10%.

Insider Activity

In other news, EVP Colin Yankee sold 6,680 shares of the firm's stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $58.40, for a total transaction of $390,112.00. Following the sale, the executive vice president directly owned 40,142 shares in the company, valued at $2,344,292.80. This trade represents a 14.27% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Kurt D. Barton sold 90,000 shares of the firm's stock in a transaction dated Thursday, July 24th. The shares were sold at an average price of $63.96, for a total value of $5,756,400.00. Following the sale, the chief financial officer owned 47,715 shares in the company, valued at $3,051,851.40. This trade represents a 65.35% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 207,490 shares of company stock worth $12,216,998. 0.65% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

A number of analysts recently issued reports on TSCO shares. Robert W. Baird boosted their price target on Tractor Supply from $56.00 to $61.00 and gave the company an "outperform" rating in a report on Monday, July 21st. Raymond James Financial reiterated an "outperform" rating and issued a $65.00 price target (up previously from $57.00) on shares of Tractor Supply in a report on Friday, July 25th. Guggenheim lowered their price target on Tractor Supply from $60.00 to $55.00 and set a "buy" rating for the company in a report on Friday, April 25th. Telsey Advisory Group set a $70.00 price target on Tractor Supply in a report on Friday, July 25th. Finally, Truist Financial boosted their price target on Tractor Supply from $60.00 to $66.00 and gave the company a "buy" rating in a report on Friday, July 25th. Nine investment analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $61.80.

Tractor Supply Company Profile

Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers various merchandise, including livestock and equine feed and equipment, poultry, fencing, and sprayers and chemicals; food, treats, and equipment for dogs, cats, and other small animals, as well as dog wellness products; seasonal and recreation products comprising tractors and riders, lawn and garden, bird feeding, power equipment, and other recreational products; truck, tool, and hardware products, such as truck accessories, trailers, generators, lubricants, batteries, and hardware and tools; and clothing, gift, and décor products consist of clothing, footwear, toys, snacks, and decorative merchandise.