Tractor Supply (NASDAQ:TSCO) Shares Gap Down After Earnings Miss

Tractor Supply (NASDAQ:TSCO)’s share price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. 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 traded.

The specialty retailer reported $0.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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. Stockholders of record on Monday, November 25th were paid a dividend of $0.22 per share. The ex-dividend date of this dividend was Monday, November 25th. This represents a $0.88 annualized dividend and a dividend yield of 1.62%. Tractor Supply’s dividend payout ratio is presently 42.80%.

Analysts Set New Price Targets

TSCO has been the topic of a number of recent analyst reports. Truist Financial lowered their price target on Tractor Supply from $65.00 to $63.40 and set a “buy” rating on the stock in a research report on Friday, October 25th. Loop Capital boosted their price target on Tractor Supply from $53.00 to $58.00 and gave the company a “hold” rating in a research note on Thursday, December 12th. Barclays lowered their price objective on Tractor Supply from $262.00 to $52.00 and set an “equal weight” rating on the stock in a research note on Monday, December 30th. Evercore ISI upgraded Tractor Supply from a “hold” rating to a “strong-buy” rating in a research report on Friday, November 15th. Finally, DA Davidson raised their price target on Tractor Supply from $60.00 to $65.00 and gave the stock a “buy” rating in a research report on Friday, October 25th. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, Tractor Supply has an average rating of “Moderate Buy” and a consensus price target of $58.58.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Sumitomo Mitsui Trust Group Inc. raised its stake in shares of Tractor Supply by 397.2% in the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,231,865 shares of the specialty retailer’s stock valued at $65,363,000 after buying an additional 984,113 shares during the period. Swedbank AB increased its holdings in Tractor Supply by 564.0% in the 4th quarter. Swedbank AB now owns 869,290 shares of the specialty retailer’s stock worth $46,125,000 after acquiring an additional 738,378 shares during the last quarter. abrdn plc raised its stake in Tractor Supply by 632.0% in the 4th quarter. abrdn plc now owns 849,432 shares of the specialty retailer’s stock valued at $44,965,000 after acquiring an additional 733,396 shares during the period. MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH lifted its holdings in Tractor Supply by 479.8% during the fourth quarter. MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH now owns 717,855 shares of the specialty retailer’s stock valued at $37,752,000 after purchasing an additional 594,045 shares during the last quarter. Finally, Stephens Investment Management Group LLC boosted its position in Tractor Supply by 349.2% during the fourth quarter. Stephens Investment Management Group LLC now owns 700,735 shares of the specialty retailer’s stock worth $37,181,000 after purchasing an additional 544,747 shares during the period. 98.72% of the stock is currently owned by hedge funds and other institutional investors.

Tractor Supply Price Performance

The firm’s 50 day moving average price is $55.29 and its two-hundred day moving average price is $55.24. The stock has a market cap of $28.97 billion, a PE ratio of 26.58, a P/E/G ratio of 3.31 and a beta of 0.84. The company has a debt-to-equity ratio of 0.81, a current ratio of 1.48 and a quick ratio of 0.17.

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.