Tractor Supply (NASDAQ:TSCO) Shares Gap Down Following Weak Earnings

Tractor Supply (NASDAQ:TSCO)’s stock price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $57.16, but opened at $54.04. Tractor Supply shares last traded at $54.83, with a volume of 1,445,016 shares trading hands.

The specialty retailer reported $0.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.28 by ($1.84). Tractor Supply had a return on equity of 50.19% and a net margin of 7.53%.

Tractor Supply Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, December 10th. Shareholders of record on Monday, November 25th were given a $0.22 dividend. The ex-dividend date was Monday, November 25th. This represents a $0.88 dividend on an annualized basis and a dividend yield of 1.62%. Tractor Supply’s dividend payout ratio is currently 42.72%.

Wall Street Analyst Weigh In

A number of brokerages recently commented on TSCO. Guggenheim restated a “buy” rating and issued a $60.00 target price on shares of Tractor Supply in a research note on Friday. Wells Fargo & Company decreased their target price on shares of Tractor Supply from $65.00 to $64.00 and set an “overweight” rating on the stock in a research report on Monday, November 25th. DA Davidson increased their price target on shares of Tractor Supply from $60.00 to $65.00 and gave the stock a “buy” rating in a research report on Friday, October 25th. Piper Sandler lifted their price objective on Tractor Supply from $60.00 to $66.40 and gave the company an “overweight” rating in a report on Monday, October 14th. Finally, Citigroup cut Tractor Supply from a “strong-buy” rating to a “hold” rating in a report on Thursday, October 17th. Two analysts have rated the stock with a sell rating, six have issued a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $58.90.

Institutional Trading of Tractor Supply

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Meridiem Investment Management Ltd. grew its position in shares of Tractor Supply by 398.9% during the 4th quarter. Meridiem Investment Management Ltd. now owns 5,118,785 shares of the specialty retailer’s stock worth $271,674,000 after buying an additional 4,092,808 shares during the period. Provident Trust Co. raised its position in shares of Tractor Supply by 397.4% during the 4th quarter. Provident Trust Co. now owns 3,380,905 shares of the specialty retailer’s stock valued at $179,391,000 after acquiring an additional 2,701,204 shares during the last quarter. Principal Financial Group Inc. lifted its stake in shares of Tractor Supply by 345.2% in the 4th quarter. Principal Financial Group Inc. now owns 1,402,070 shares of the specialty retailer’s stock valued at $74,394,000 after purchasing an additional 1,087,112 shares during the period. Sumitomo Mitsui Trust Group Inc. boosted its position in shares of Tractor Supply by 397.2% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,231,865 shares of the specialty retailer’s stock worth $65,363,000 after purchasing an additional 984,113 shares during the last quarter. Finally, Rhumbline Advisers grew its stake in shares of Tractor Supply by 387.4% during the fourth quarter. Rhumbline Advisers now owns 1,166,820 shares of the specialty retailer’s stock worth $61,911,000 after purchasing an additional 927,406 shares during the period. 98.72% of the stock is currently owned by institutional investors and hedge funds.

Tractor Supply Stock Up 0.1 %

The business has a fifty day moving average of $55.24 and a 200 day moving average of $55.23. The company has a quick ratio of 0.17, a current ratio of 1.48 and a debt-to-equity ratio of 0.81. The firm has a market cap of $29.04 billion, a P/E ratio of 26.44, a P/E/G ratio of 3.29 and a beta of 0.84.

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.