Investment firm NEOS Investment Management LLC has significantly increased its stake in Tractor Supply Company (NASDAQ: TSCO), raising its holdings by 49.9% during the third quarter of 2023. According to its latest Form 13F filing with the Securities and Exchange Commission, NEOS now owns a total of 63,881 shares of the retailer, after acquiring an additional 21,256 shares during the quarter. The value of NEOS’s holdings in Tractor Supply is approximately $3,633,000.
This move reflects a broader trend among institutional investors. Other firms have also adjusted their positions in Tractor Supply. For instance, Invesco Ltd. raised its stake by 123.4% during the second quarter, now holding 15,079,313 shares valued at $795,735,000. Additionally, Norges Bank entered a new position worth approximately $274,959,000, while Select Equity Group L.P. increased its holdings by 41.9%, now owning 12,713,409 shares valued at $670,887,000. AXA S.A. also made headlines by boosting its holdings by an astonishing 418.2% in the same quarter.
Given these changes, institutional investors now own approximately 98.72% of Tractor Supply’s stock, indicating a strong confidence in the company’s future.
Analyst Ratings and Market Performance
Recent assessments by analysts have varied, with multiple firms providing insights into Tractor Supply’s stock performance. Wolfe Research reaffirmed an “outperform” rating, setting a target price of $57.00 per share. Conversely, TD Cowen has reduced its target from $55.00 to $53.00, maintaining a “hold” rating. On the other hand, Piper Sandler adjusted its price target down from $67.00 to $59.00, while Robert W. Baird raised its target from $65.00 to $67.00.
The consensus from analysts indicates a “Moderate Buy” rating, with a price target averaging $59.78. As of the latest trading session, Tractor Supply’s stock opened at $51.96, reflecting a 1.1% decrease. The company’s market capitalization stands at $27.46 billion, with a price-to-earnings ratio of 25.10 and a debt-to-equity ratio of 0.70.
Tractor Supply recently reported its quarterly earnings results on January 29, 2024. The company posted earnings per share (EPS) of $0.43, falling short of analysts’ expectations of $0.46. Revenue for the quarter totaled $3.90 billion, down from the consensus estimate of $4.03 billion, although this marks a 3.3% increase year-over-year.
Dividend Announcement and Insider Trading
In a positive development for shareholders, Tractor Supply announced a quarterly dividend of $0.24 per share, set to be paid on March 10, 2024. Investors on record as of February 24, 2024 will receive this dividend, which represents an annualized payout of $0.96 and a yield of 1.8%. This marks an increase from the previous quarterly dividend of $0.23, with a payout ratio currently at 44.44%.
In insider trading news, Colin Yankee, Executive Vice President, sold 11,170 shares at an average price of $55.35, totaling approximately $618,259.50. Following this transaction, Yankee holds 45,515 shares valued at around $2,519,255.25. Another executive, Robert D. Mills, sold 62,950 shares at an average price of $54.12, amounting to approximately $3,406,854.00.
In the past 90 days, insiders have sold a total of 222,348 shares worth nearly $11,959,621, representing 0.65% of the company’s stock currently held by corporate insiders.
Tractor Supply Company operates as a specialty retailer focused on products for home, farm, ranch, and outdoor needs. The company combines physical retail locations with an e-commerce platform, catering to customers with rural and suburban lifestyles. Its diverse product offerings range from animal care to outdoor power equipment, ensuring it meets a wide array of customer needs.
