Tractor Supply (NASDAQ:TSCO) Hits New 12-Month Low - What's Next?

Key Points

• Tractor Supply hit a new 52-week low, trading as low as $44.44 and last at $45.47, below its 50-day ($51.76) and 200-day ($53.53) moving averages on heavy volume (~1.01M shares).
• The company missed quarterly estimates—EPS $0.43 vs. $0.46 and revenue $3.90B vs. $4.03B—and although several analysts cut targets, the consensus rating is a “Moderate Buy” with an average target of $59.78.
• Insiders have been net sellers (222,348 shares sold, ~$11.96M in the last 90 days) even as Tractor Supply raised its quarterly dividend to $0.24 (annualized $0.96, ~2.1% yield).

Tractor Supply Company (NASDAQ:TSCO - Get Free Report)'s share price hit a new 52-week low on Tuesday . The company traded as low as $44.44 and last traded at $45.47, with a volume of 1012024 shares trading hands. The stock had previously closed at $45.67.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. TD Cowen reduced their target price on shares of Tractor Supply from $55.00 to $53.00 and set a "hold" rating for the company in a research report on Friday, January 30th. Argus lowered their price objective on shares of Tractor Supply from $67.00 to $64.00 and set a "buy" rating for the company in a research report on Monday, February 2nd. JPMorgan Chase & Co. lowered their price objective on shares of Tractor Supply from $62.00 to $59.00 and set a "neutral" rating for the company in a research note on Friday, January 30th. Zacks Research cut Tractor Supply from a "hold" rating to a "strong sell" rating in a research note on Monday, February 2nd. Finally, DA Davidson reissued a "buy" rating and issued a $60.00 price objective on shares of Tractor Supply in a research report on Friday, January 30th. Fifteen equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $59.78.

Tractor Supply Stock Performance

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's 50-day simple moving average is $51.76 and its 200 day simple moving average is $53.53. The company has a market cap of $24.06 billion, a PE ratio of 22.07, a P/E/G ratio of 2.29 and a beta of 0.72.

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

Tractor Supply Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Tuesday, February 24th were issued a $0.24 dividend. The ex-dividend date was Tuesday, February 24th. This is a positive change from Tractor Supply's previous quarterly dividend of $0.23. This represents a $0.96 dividend on an annualized basis and a yield of 2.1%. Tractor Supply's payout ratio is presently 46.38%.

Insider Buying and Selling

In other news, EVP Jonathan S. Estep sold 59,745 shares of the business's stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $54.03, for a total transaction of $3,228,022.35. Following the completion of the sale, the executive vice president directly owned 80,931 shares of the company's stock, valued at $4,372,701.93. The trade was a 42.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Kurt D. Barton sold 1,929 shares of Tractor Supply stock in a transaction on Friday, February 6th. The shares were sold at an average price of $53.94, for a total value of $104,050.26. Following the completion of the transaction, the chief financial officer owned 44,736 shares in the company, valued at $2,413,059.84. The trade was a 4.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 222,348 shares of company stock worth $11,959,621 over the last 90 days. Company insiders own 0.65% of the company's stock.

Institutional Investors Weigh In On Tractor Supply

Hedge funds have recently modified their holdings of the stock. Financial Network Wealth Advisors LLC lifted its position in shares of Tractor Supply by 8.0% during the third quarter. Financial Network Wealth Advisors LLC now owns 2,465 shares of the specialty retailer's stock worth $140,000 after purchasing an additional 182 shares in the last quarter. Advyzon Investment Management LLC lifted its stake in shares of Tractor Supply by 4.3% in the fourth quarter. Advyzon Investment Management LLC now owns 4,462 shares of the specialty retailer's stock worth $223,000 after acquiring an additional 183 shares in the last quarter. Perigon Wealth Management LLC boosted its holdings in Tractor Supply by 0.6% in the third quarter. Perigon Wealth Management LLC now owns 34,036 shares of the specialty retailer's stock valued at $1,936,000 after purchasing an additional 200 shares during the last quarter. Field & Main Bank grew its stake in Tractor Supply by 1.1% during the 4th quarter. Field & Main Bank now owns 18,835 shares of the specialty retailer's stock valued at $942,000 after purchasing an additional 200 shares in the last quarter. Finally, Colonial Trust Advisors increased its holdings in Tractor Supply by 1.3% during the 2nd quarter. Colonial Trust Advisors now owns 16,489 shares of the specialty retailer's stock worth $870,000 after purchasing an additional 214 shares during the last quarter. 98.72% of the stock is currently owned by hedge funds and other institutional investors.

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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