Stock Traders Purchase High Volume of Tractor Supply Call Options (NASDAQ:TSCO)

Key Points

• Tractor Supply saw unusual options activity as traders bought 17,595 call options, about 101% above its average daily call volume.
• The stock fell on the day and has weakened sharply, closing at $29.68 and trading well below its 50-day and 200-day moving averages.
• Analysts are cautious overall, with a consensus rating of Hold and a $40.88 average price target, despite some firms still rating the stock a Buy.

Tractor Supply Company (NASDAQ:TSCO - Get Free Report) was the recipient of some unusual options trading activity on Tuesday. Traders bought 17,595 call options on the stock. This represents an increase of approximately 101% compared to the average daily volume of 8,757 call options.

Tractor Supply Stock Performance

TSCO traded down $0.62 on Tuesday, hitting $29.68. The company's stock had a trading volume of 2,523,415 shares, compared to its average volume of 9,614,064. The firm has a market cap of $15.57 billion, a P/E ratio of 14.54, a price-to-earnings-growth ratio of 2.35 and a beta of 0.46. Tractor Supply has a 12 month low of $28.36 and a 12 month high of $63.99. The company has a quick ratio of 0.16, a current ratio of 1.38 and a debt-to-equity ratio of 0.86. The company's 50 day simple moving average is $30.66 and its 200-day simple moving average is $41.74.

Tractor Supply (NASDAQ:TSCO - Get Free Report) last released its quarterly earnings data on Tuesday, April 21st. The specialty retailer reported $0.31 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.35 by ($0.04). The company had revenue of $3.59 billion for the quarter, compared to the consensus estimate of $3.64 billion. Tractor Supply had a net margin of 6.91% and a return on equity of 42.58%. The business's revenue for the quarter was up 3.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.34 earnings per share. Analysts forecast that Tractor Supply will post 2.08 EPS for the current year.

Tractor Supply Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 9th. Investors of record on Wednesday, May 27th were paid a dividend of $0.24 per share. The ex-dividend date of this dividend was Wednesday, May 27th. This represents a $0.96 annualized dividend and a yield of 3.2%. Tractor Supply's payout ratio is currently 47.06%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of TSCO. Bison Wealth LLC grew its position in Tractor Supply by 356.1% during the fourth quarter. Bison Wealth LLC now owns 6,426 shares of the specialty retailer's stock worth $341,000 after buying an additional 5,017 shares in the last quarter. Woodline Partners LP boosted its position in shares of Tractor Supply by 40.7% during the 1st quarter. Woodline Partners LP now owns 45,132 shares of the specialty retailer's stock valued at $2,487,000 after acquiring an additional 13,051 shares during the last quarter. Intech Investment Management LLC boosted its position in shares of Tractor Supply by 26.9% during the 1st quarter. Intech Investment Management LLC now owns 26,162 shares of the specialty retailer's stock valued at $1,442,000 after acquiring an additional 5,542 shares during the last quarter. Sei Investments Co. grew its holdings in shares of Tractor Supply by 1.2% during the second quarter. Sei Investments Co. now owns 316,009 shares of the specialty retailer's stock worth $16,676,000 after purchasing an additional 3,631 shares in the last quarter. Finally, Glenview Trust co grew its holdings in shares of Tractor Supply by 36.0% during the second quarter. Glenview Trust co now owns 19,627 shares of the specialty retailer's stock worth $1,036,000 after purchasing an additional 5,194 shares in the last quarter. 98.72% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on TSCO shares. Guggenheim reaffirmed a "buy" rating and issued a $50.00 target price (down from $60.00) on shares of Tractor Supply in a report on Friday, June 5th. Morgan Stanley cut their price target on shares of Tractor Supply from $57.00 to $45.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 22nd. Jefferies Financial Group restated a "buy" rating and set a $51.00 price target on shares of Tractor Supply in a research report on Tuesday, April 21st. Loop Capital decreased their price objective on shares of Tractor Supply from $41.00 to $35.00 and set a "hold" rating for the company in a report on Tuesday, June 16th. Finally, Daiwa Securities Group lowered their price objective on shares of Tractor Supply from $52.00 to $41.00 and set a "neutral" rating on the stock in a research report on Thursday, April 23rd. Thirteen analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $40.88.

Tractor Supply Company Profile

Tractor Supply Company NASDAQ: TSCO is a specialty retailer focused on products for the home, farm, ranch and outdoors. The company operates a network of physical retail locations complemented by an e-commerce platform, offering a one-stop source of supplies and equipment for customers with rural and suburban lifestyles. Its merchandise assortment targets a range of needs, from animal and livestock care to maintenance, outdoor power equipment, and seasonal products.

Product categories include animal feed and supplies, pet products, fencing and fencing supplies, equine equipment, lawn and garden tools, work clothing and footwear, and small agricultural and outdoor power equipment.

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