Tractor Supply (NASDAQ:TSCO) Shares Gap Up on Better-Than-Expected Earnings

Shares of Tractor Supply Company (NASDAQ:TSCO - Get Free Report) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $59.62, but opened at $63.96. Tractor Supply shares last traded at $58.39, with a volume of 5,252,648 shares trading hands.

The specialty retailer reported $0.81 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.80 by $0.01. Tractor Supply had a net margin of 7.24% and a return on equity of 47.56%. The company had revenue of $4.44 billion during the quarter, compared to analysts' expectations of $4.40 billion. During the same period in the prior year, the company earned $3.93 earnings per share. The business's quarterly revenue was up 4.5% compared to the same quarter last year.

Tractor Supply Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 10th. Shareholders of record on Wednesday, May 28th were issued a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a yield of 1.58%. The ex-dividend date was Wednesday, May 28th. Tractor Supply's dividend payout ratio (DPR) is presently 45.77%.

Analysts Set New Price Targets

A number of research firms have recently commented on TSCO. Guggenheim reduced their price objective on shares of 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 reaffirmed an "outperform" rating and set a $60.00 price objective on shares of Tractor Supply in a report on Friday, July 18th. Raymond James Financial cut their price target on shares of Tractor Supply from $61.00 to $57.00 and set an "outperform" rating on the stock in a research note on Friday, April 25th. Robert W. Baird upped their price target on shares of Tractor Supply from $56.00 to $61.00 and gave the company an "outperform" rating in a research note on Monday. Finally, UBS Group set a $54.00 price target on shares of Tractor Supply in a research note on Friday, April 25th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $58.65.

Insider Activity at Tractor Supply

In related news, Director Denise L. Jackson sold 4,630 shares of the stock in a transaction on Monday, July 7th. The stock was sold at an average price of $55.93, for a total transaction of $258,955.90. Following the sale, the director owned 35,288 shares in the company, valued at approximately $1,973,657.84. This represents a 11.60% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, SVP Matthew L. Rubin sold 2,810 shares of the stock in a transaction on Wednesday, May 14th. The shares were sold at an average price of $51.76, for a total value of $145,445.60. Following the sale, the senior vice president owned 29,722 shares in the company, valued at $1,538,410.72. The trade was a 8.64% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 104,445 shares of company stock worth $5,669,742. 0.65% of the stock is owned by company insiders.

Institutional Trading of Tractor Supply

Hedge funds and other institutional investors have recently bought and sold shares of the business. FORA Capital LLC increased its stake in Tractor Supply by 434.1% in the fourth quarter. FORA Capital LLC now owns 35,526 shares of the specialty retailer's stock worth $1,885,000 after purchasing an additional 28,875 shares during the period. Allspring Global Investments Holdings LLC increased its stake in Tractor Supply by 7.9% in the first quarter. Allspring Global Investments Holdings LLC now owns 70,944 shares of the specialty retailer's stock worth $3,911,000 after purchasing an additional 5,184 shares during the period. Sowell Financial Services LLC grew its position in shares of Tractor Supply by 49.3% during the 1st quarter. Sowell Financial Services LLC now owns 20,029 shares of the specialty retailer's stock worth $1,104,000 after buying an additional 6,612 shares in the last quarter. Sequoia Financial Advisors LLC grew its position in shares of Tractor Supply by 9.2% during the 1st quarter. Sequoia Financial Advisors LLC now owns 112,233 shares of the specialty retailer's stock worth $6,184,000 after buying an additional 9,483 shares in the last quarter. Finally, CIBC Private Wealth Group LLC grew its position in shares of Tractor Supply by 385.8% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,089,542 shares of the specialty retailer's stock worth $59,260,000 after buying an additional 865,273 shares in the last quarter. Hedge funds and other institutional investors own 98.72% of the company's stock.

Tractor Supply Stock Down 2.1%

The company has a current ratio of 1.41, a quick ratio of 0.17 and a debt-to-equity ratio of 0.94. The business has a 50-day moving average price of $52.84 and a 200-day moving average price of $53.27. The firm has a market cap of $30.95 billion, a P/E ratio of 28.98, a P/E/G ratio of 3.18 and a beta of 0.75.

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.

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