Tractor Supply (NASDAQ:TSCO), a leading retailer of rural lifestyle products, is set to release its earnings results on Thursday, July 27th, before the market opens. Analysts are eagerly awaiting the announcement, with expectations for the company to report earnings of $3.98 per share for the quarter.
Investors and analysts alike have been closely following Tractor Supply’s performance, particularly as they approach their FY23 guidance range of $10.30-$10.60 EPS. This guidance sets a benchmark for the company’s financial success in the coming year and provides insights into their strategic direction.
In light of this upcoming announcement, it is worth noting recent insider trading activities within Tractor Supply. In May, EVP Robert D. Mills sold 7,982 shares of the company’s stock at an average price of $227.35 per share, totaling a transaction value of $1,814,707.70. Following this transaction, Mills now holds 14,980 shares in Tractor Supply valued at approximately $3,405,703.
Additionally, CMO Jonathan S. Estep sold 12,074 shares of Tractor Supply on May 17th at an average price of $226.20 per share, amounting to a total transaction value of $2,731,138.80. Estep now retains 7,972 shares in the company that are valued at $1,803,266.
The disclosure for these insider sales can be found in documents filed with the Securities & Exchange Commission (SEC), further highlighting transparency and compliance within Tractor Supply’s operations. It is important to note that insiders collectively sold 29,147 shares over the past 90 days with a total value of $6,612,685.
Despite these insider transactions taking place recently, shareholders have also benefitted from a quarterly dividend payment on June 13th. Shareholders who were recorded on May 30th received a dividend of $1.03 per share. This translates to an annualized dividend of $4.12 and a current yield of 1.95%. The ex-dividend date for this payment was May 26th, indicating that investors needed to hold shares before this date to qualify for the dividend.
Tractor Supply’s payout ratio currently stands at 42.43%, showcasing its commitment to providing returns to shareholders through dividends while maintaining responsible financial management. This payout ratio represents the percentage of earnings distributed as dividends relative to the company’s net income.
As Tractor Supply prepares to disclose its earnings results, investors and analysts are eager to gain insights into the company’s performance and strategic outlook moving forward. These glimpses into the inner workings of Tractor Supply not only offer transparency but also contribute to investor confidence and help shape expectations for future growth in this rapidly evolving retail sector.
Tractor Supply Company
Updated on: 01/03/2024
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
ROE: Strong Buy
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|Analyst / firm
Tractor Supply Co. Demonstrates Resilience and Growth Potential despite Earnings Shortfall
Tractor Supply Co. (TSCO), a specialty retailer, recently announced its earnings results for the quarter ending April 27th, much to the anticipation of investors and analysts alike. The company reported earnings per share of $1.65, slightly lower than the consensus estimates of $1.69, representing a shortfall of $0.04.
Despite falling short on earnings, Tractor Supply managed to generate revenue of $3.30 billion for the quarter, only marginally lower than analysts’ expectations of $3.31 billion. This modest decline in revenue can be attributed to various factors such as market dynamics and customer preferences.
However, it is worth noting that Tractor Supply saw a commendable increase in its revenue compared to the same period last year, recording a growth rate of 9.1%. This significant leap underscores the company’s ability to adapt and thrive in an ever-evolving retail landscape.
One metric that particularly stands out for Tractor Supply is its return on equity (ROE), which stands at an impressive 55.53%. This indicates that the company efficiently utilizes its shareholders’ investment to generate profit.
Furthermore, Tractor Supply achieved a net margin of 7.49%, highlighting its strong profitability even in a competitive market environment. It is evident that the company’s management has implemented effective strategies to optimize costs while maintaining a healthy bottom line.
On July 20th, TSCO stock opened at $211.16 with a market capitalization totaling $23.14 billion. With a price-to-earnings (PE) ratio of 21.75 and a beta rating of 0.81, Tractor Supply remains an attractive investment option for many discerning investors who are seeking stable returns coupled with moderate risk exposure.
In terms of technical analysis, Tractor Supply’s stock demonstrated stability over both short-term and long-term periods according to its moving averages – specifically the 50-day moving average of $219.71 and the 200-day moving average of $227.39.
Tractor Supply has experienced both highs and lows in its stock performance, with a 52-week low of $181.40 and a 52-week high of $251.17. This suggests that the company’s shares have exhibited significant volatility, creating opportunities for astute investors to profit from price fluctuations.
Analysts have recently scrutinized Tractor Supply, evaluating its potential future prospects and offering their insights on its stock performance. Notable financial institutions such as Wedbush, Truist Financial, Wells Fargo & Company, and Guggenheim have all weighed in with their views.
Wedbush notably increased their price objective on TSCO shares from $230.00 to $240.00 in their research note on April 28th, reflecting positive sentiments towards the company’s growth prospects.
Truist Financial, however, reduced their price target from $280.00 to $275.00 on July 12th, which may indicate a more cautious approach taken by some analysts based on evolving market conditions.
Wells Fargo & Company also lowered Tractor Supply’s price objective from $270.00 to $255.00 but maintained an “overweight” rating, suggesting that they still believe in the company’s long-term potential.
Similarly, Guggenheim reduced their target price from $265.00 to $245.00 on June 29th but did not downgrade their overall rating. These adjustments reflect adjustments to market expectations rather than a diminished outlook for Tractor Supply.
The consensus rating for Tractor Supply currently stands at “Moderate Buy,” according to data from Bloomberg.com. This reflects the fact that eight research analysts have rated the stock as a hold while twelve deem it as a buy option alongside one strong buy rating.
Overall, Tractor Supply has demonstrated resilience and adaptability in the face of challenges within the retail sector. The company’s ability to generate consistent revenue growth, coupled with its strong profits and solid return on equity, has positioned it as an attractive investment opportunity for many discerning investors.
While the stock has experienced some volatility, market analysts’ consensus indicates a positive outlook for Tractor Supply, with an average price target of $249.50. This suggests that the company has room for further growth and potential appreciation in its stock price.