Jensen Investment Management Inc. Trims Stock Position in Tractor Supply Company (NASDAQ:TSCO)

Key Points

• Jensen Investment Management Inc. reduced its stake in Tractor Supply by 15.7%, owning 106,390 shares worth approximately $5.86 million after selling 19,760 shares in the 1st quarter.
• Tractor Supply recently reported $4.44 billion in revenue for the quarter, exceeding expectations, with $0.81 earnings per share that slightly surpassed the consensus estimate of $0.80.
• Several institutional investors have significantly increased their holdings in Tractor Supply, with hedge funds now owning 98.72% of the stock.

Jensen Investment Management Inc. cut its stake in shares of Tractor Supply Company (NASDAQ:TSCO - Free Report) by 15.7% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 106,390 shares of the specialty retailer's stock after selling 19,760 shares during the period. Jensen Investment Management Inc.'s holdings in Tractor Supply were worth $5,862,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in TSCO. Coppell Advisory Solutions LLC raised its stake in shares of Tractor Supply by 944.4% during the 4th quarter. Coppell Advisory Solutions LLC now owns 470 shares of the specialty retailer's stock worth $25,000 after buying an additional 425 shares in the last quarter. GW&K Investment Management LLC raised its stake in shares of Tractor Supply by 89.3% during the 1st quarter. GW&K Investment Management LLC now owns 479 shares of the specialty retailer's stock worth $26,000 after buying an additional 226 shares in the last quarter. Dunhill Financial LLC raised its stake in shares of Tractor Supply by 325.8% during the 4th quarter. Dunhill Financial LLC now owns 511 shares of the specialty retailer's stock worth $27,000 after buying an additional 391 shares in the last quarter. Pacific Center for Financial Services raised its stake in shares of Tractor Supply by 400.0% during the 4th quarter. Pacific Center for Financial Services now owns 550 shares of the specialty retailer's stock worth $29,000 after buying an additional 440 shares in the last quarter. Finally, LRI Investments LLC raised its stake in shares of Tractor Supply by 400.0% during the 4th quarter. LRI Investments LLC now owns 615 shares of the specialty retailer's stock worth $33,000 after buying an additional 492 shares in the last quarter. 98.72% of the stock is owned by hedge funds and other institutional investors.

Tractor Supply Price Performance

TSCO stock opened at $59.77 on Wednesday. Tractor Supply Company has a 52-week low of $46.85 and a 52-week high of $63.99. The stock's fifty day simple moving average is $54.36 and its 200-day simple moving average is $53.60. The company has a quick ratio of 0.16, a current ratio of 1.28 and a debt-to-equity ratio of 0.68. The stock has a market capitalization of $31.69 billion, a price-to-earnings ratio of 29.33, a price-to-earnings-growth ratio of 3.06 and a beta of 0.75.

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

Tractor Supply Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 10th. Investors of record on Wednesday, May 28th were given a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend was Wednesday, May 28th. Tractor Supply's dividend payout ratio (DPR) is 45.10%.

Analyst Upgrades and Downgrades

TSCO has been the subject of a number of analyst reports. Robert W. Baird increased their target price on Tractor Supply from $56.00 to $61.00 and gave the stock an "outperform" rating in a research note on Monday, July 21st. Truist Financial upped their price target on Tractor Supply from $60.00 to $66.00 and gave the stock a "buy" rating in a report on Friday, July 25th. Wall Street Zen upgraded Tractor Supply from a "sell" rating to a "hold" rating in a report on Saturday, July 26th. Wells Fargo & Company upped their price target on Tractor Supply from $63.00 to $65.00 and gave the stock an "overweight" rating in a report on Friday, July 25th. Finally, Bank of America upgraded Tractor Supply from an "underperform" rating to a "buy" rating and set a $70.00 price target on the stock in a report on Thursday, July 24th. 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.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $61.80.

Insiders Place Their Bets

In related news, SVP Noni L. Ellison sold 5,200 shares of the stock in a transaction on Thursday, July 24th. The stock was sold at an average price of $63.96, for a total value of $332,592.00. Following the transaction, the senior vice president directly owned 28,639 shares of the company's stock, valued at approximately $1,831,750.44. This trade represents a 15.37% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Jonathan S. Estep sold 56,630 shares of the stock in a transaction on Monday, June 23rd. The stock was sold at an average price of $53.00, for a total value of $3,001,390.00. Following the completion of the transaction, the executive vice president directly owned 74,605 shares in the company, valued at $3,954,065. This trade represents a 43.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 207,490 shares of company stock worth $12,216,998. Corporate insiders own 0.65% of the company's stock.

About Tractor Supply

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.

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