Tractor Supply (NASDAQ:TSCO) Hits New 1-Year Low - Should You Sell?

Key Points

• Shares hit a new 52-week low — TSCO traded as low as $43.23 (last $43.62) and was down about 3.9% on the day with heavy volume, trading below its 50- and 200-day moving averages.
• Q4 results disappointed — The company missed revenue ($3.90B vs. $4.03B) and EPS ($0.43 vs. $0.46) as discretionary categories softened, which is the primary near-term pressure on the stock.
• Mixed analyst outlook and income signal — Wall Street’s consensus is a “Moderate Buy” with a $58.78 price target, but several firms have trimmed targets and BofA gave a Neutral rating; Tractor Supply also raised its quarterly dividend to $0.24 (2.2% yield), while insiders have sold material positions recently.

Shares of Tractor Supply Company (NASDAQ:TSCO - Get Free Report) hit a new 52-week low during trading on Tuesday . The stock traded as low as $43.23 and last traded at $43.6210, with a volume of 3225320 shares. The stock had previously closed at $45.39.

Tractor Supply News Summary

Here are the key news stories impacting Tractor Supply this week:

• Positive Sentiment: Analysts and value screens are flagging TSCO as a potential rebound candidate because the shares are trading near their 52-week low, the dividend is intact and some research notes see upside once discretionary spending stabilizes. This frames TSCO as a beaten-down, defensive retail name with longer-term recovery potential. 3 Discounted Stocks With Strong Rebound Potential (TSCO)
• Neutral Sentiment: Bank of America reinstated coverage on TSCO with a Neutral rating and a $47 price target — the PT implies modest upside from current levels but the Neutral call signals limited near-term upside, so this is unlikely to spark a large rally. Tractor Supply Reinstated at Neutral by BofA as Discretionary Headwinds Limit Upside
• Neutral Sentiment: Tractor Supply launched an FFA-exclusive tote design contest tied to its Harvest Fest event, a PR/marketing initiative that supports community engagement and brand loyalty but is unlikely to move near-term revenue or profits materially. Tractor Supply Invites FFA Members Nationwide to Highlight “Life Out Here” in Harvest Fest Tote Bag Design Competition
• Negative Sentiment: Recent Q4 results showed TSCO missed top- and bottom-line estimates and discretionary categories were weak — that earnings miss and softer sales mix are the primary near-term catalyst pressuring the stock as investors worry about consumer discretionary spending trends. Q4 rundown: Tractor Supply NASDAQ: TSCO vs other specialty retail stocks

Wall Street Analyst Weigh In

Several brokerages recently commented on TSCO. Citigroup reaffirmed a "buy" rating and set a $61.00 target price (down from $66.00) on shares of Tractor Supply in a report on Friday, January 16th. Gordon Haskett downgraded shares of Tractor Supply from an "accumulate" rating to a "hold" rating and cut their price objective for the company from $57.00 to $50.00 in a report on Thursday, January 8th. Piper Sandler cut their price objective on shares of Tractor Supply from $67.00 to $59.00 and set an "overweight" rating for the company in a report on Friday, January 30th. Argus cut their price objective on shares of Tractor Supply from $67.00 to $64.00 and set a "buy" rating for the company in a report on Monday, February 2nd. Finally, Mizuho cut their price objective on shares of Tractor Supply from $65.00 to $58.00 and set an "outperform" rating for the company in a report on Friday, January 30th. Fourteen analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Tractor Supply currently has an average rating of "Moderate Buy" and a consensus price target of $58.78.

Tractor Supply Stock Down 3.9%

The company has a debt-to-equity ratio of 0.70, a quick ratio of 0.16 and a current ratio of 1.34. The stock has a market cap of $22.94 billion, a P/E ratio of 21.07, a P/E/G ratio of 2.19 and a beta of 0.75. The stock's fifty day simple moving average is $50.30 and its 200-day simple moving average is $52.51.

Tractor Supply (NASDAQ:TSCO - Get Free Report) last posted its quarterly earnings data on Thursday, January 29th. The specialty retailer reported $0.43 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.46 by ($0.03). Tractor Supply had a net margin of 7.06% and a return on equity of 44.36%. The business had revenue of $3.90 billion during the quarter, compared to the consensus estimate of $4.03 billion. During the same period in the prior year, the firm earned $0.44 EPS. The business's revenue for the quarter was up 3.3% on a year-over-year basis. As a group, research analysts forecast that Tractor Supply Company will post 2.17 earnings per share for the current fiscal year.

Tractor Supply Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Stockholders of record on Tuesday, February 24th were issued a dividend of $0.24 per share. This is a boost from Tractor Supply's previous quarterly dividend of $0.23. The ex-dividend date of this dividend was Tuesday, February 24th. This represents a $0.96 dividend on an annualized basis and a dividend yield of 2.2%. Tractor Supply's payout ratio is currently 46.38%.

Insider Activity at Tractor Supply

In other news, EVP Robert D. Mills sold 62,950 shares of the company's stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $54.12, for a total transaction of $3,406,854.00. Following the completion of the sale, the executive vice president owned 122,834 shares of the company's stock, valued at approximately $6,647,776.08. This represents a 33.88% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Colin Yankee sold 11,170 shares of the company's stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $55.35, for a total transaction of $618,259.50. Following the sale, the executive vice president directly owned 45,515 shares of the company's stock, valued at approximately $2,519,255.25. This trade represents a 19.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 222,348 shares of company stock worth $11,959,621 in the last 90 days. Corporate insiders own 0.65% of the company's stock.

Institutional Trading of Tractor Supply

A number of institutional investors and hedge funds have recently made changes to their positions in TSCO. Delos Wealth Advisors LLC acquired a new position in Tractor Supply during the 2nd quarter worth approximately $26,000. JPL Wealth Management LLC acquired a new position in Tractor Supply during the 3rd quarter worth approximately $28,000. Garner Asset Management Corp acquired a new position in Tractor Supply during the 4th quarter worth approximately $25,000. Reflection Asset Management acquired a new position in Tractor Supply during the 4th quarter worth approximately $26,000. Finally, Core Wealth Advisors LLC acquired a new position in Tractor Supply during the 4th quarter worth approximately $27,000. Institutional investors own 98.72% of the company's stock.

About Tractor Supply

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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