NEOS Investment Management LLC has significantly increased its holdings in Tractor Supply Company (NASDAQ: TSCO) by 49.9% during the third quarter of 2023. According to the firm’s latest Form 13F filing with the Securities and Exchange Commission, NEOS now owns 63,881 shares of the specialty retailer, having acquired an additional 21,256 shares during the quarter. The total value of NEOS’s investment in Tractor Supply is approximately $3.63 million.
Tractor Supply has seen increased interest from various institutional investors. Notably, Invesco Ltd. raised its stake in Tractor Supply by an impressive 123.4% in the second quarter, now holding 15,079,313 shares valued at $795.74 million. Other significant investors include Norges Bank, which purchased a new position worth about $274.96 million, and Select Equity Group L.P., which increased its stake by 41.9% to now own 12,713,409 shares valued at $670.89 million.
Analysts’ Insights and Stock Performance
Research analysts have varied opinions on Tractor Supply’s stock. On January 30, 2024, Wolfe Research maintained an “outperform” rating with a target price of $57.00. Conversely, TD Cowen lowered its target from $55.00 to $53.00, suggesting a “hold” rating. Piper Sandler also adjusted its price target down from $67.00 to $59.00, while Robert W. Baird increased its target from $65.00 to $67.00, giving an “outperform” rating. The consensus among analysts indicates a “Moderate Buy” rating with an average price target of $59.78.
As of the latest trading session, TSCO stock opened at $51.96, reflecting a decline of 1.1%. The company’s financial ratios include a quick ratio of 0.16, a current ratio of 1.34, and a debt-to-equity ratio of 0.70. Tractor Supply’s market capitalization stands at $27.46 billion, with a PE ratio of 25.10 and a price-to-earnings-growth ratio of 2.63.
Quarterly Earnings and Dividends
Tractor Supply recently reported its quarterly earnings results, revealing earnings per share of $0.43, missing analysts’ expectations by $0.03. The company generated revenue of $3.90 billion, falling short of the consensus estimate of $4.03 billion. Despite this, Tractor Supply showed a year-over-year revenue increase of 3.3%.
In a positive development for investors, Tractor Supply announced a quarterly dividend of $0.24, set to be paid on March 10, 2024. This marks an increase from the previous quarterly dividend of $0.23, reflecting an annualized dividend of $0.96, which yields 1.8%. The company’s current payout ratio is 44.44%.
Insider trading activity has also been noteworthy. On February 13, 2024, Executive Vice President Colin Yankee sold 11,170 shares at an average price of $55.35, totaling approximately $618,259.50. Following the transaction, he holds 45,515 shares valued at about $2.52 million. Meanwhile, EVP Robert D. Mills sold 62,950 shares on February 11, 2024, for about $3.41 million, which represented a 33.88% decrease in his position.
Insider sales in the last 90 days reached a total of $11.96 million, with insiders currently holding 0.65% of the company’s stock.
Tractor Supply Company, publicly traded under NASDAQ: TSCO, operates as a specialty retailer providing products for homes, farms, ranches, and outdoor activities. It combines a network of physical retail locations with an e-commerce platform, targeting customers with rural and suburban lifestyles.
With its diverse product range, Tractor Supply aims to meet various customer needs, including animal care, outdoor equipment, and seasonal products. Investors and analysts alike are closely monitoring the company’s performance as it navigates the evolving retail landscape.
