Tractor Supply Company (TSCO) Downgraded to “Sell” at Zacks Investment Research
Tractor Supply Company (NASDAQ:TSCO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday.
According to Zacks, “Tractor Supply has underperformed the industry year to date, mainly on the back of an unsatisfactory first-half 2017 performance. Notably, the company lagged both top and bottom lines in second-quarter, following in line earnings in the first quarter. Further, margins remained pressurized mainly due to higher freight expenses and increased SG&A costs. These factors led management to lower its forecast for 2017. Moreover, the challenging economic backdrop at the agricultural and energy sectors has been taking a toll on consumer spending, which is hurting Tractor Supply’s performance. Nevertheless, the company witnessed positive trends in early third quarter, thanks to favorable weather conditions. We also commend Tractor Supply’s store base expansion and omni-channel efforts, which are likely to boost top line. Evidently, the company’s Buy Online Pick Up in Store program contributed 55% to online sales in the second quarter.”
TSCO has been the subject of a number of other research reports. BMO Capital Markets set a $57.00 target price on shares of Tractor Supply and gave the stock a “hold” rating in a research note on Tuesday, July 11th. Deutsche Bank AG restated a “hold” rating and set a $54.00 target price (down previously from $69.00) on shares of Tractor Supply in a research note on Thursday, July 27th. Wedbush restated an “outperform” rating and set a $72.00 target price (up previously from $65.00) on shares of Tractor Supply in a research note on Tuesday, October 3rd. Bank of America Corp restated a “buy” rating and set a $69.00 target price on shares of Tractor Supply in a research note on Tuesday, September 5th. Finally, Piper Jaffray Companies reiterated a “hold” rating and issued a $57.00 price objective on shares of Tractor Supply in a research note on Friday, September 29th. One analyst has rated the stock with a sell rating, fifteen have issued a hold rating and eight have given a buy rating to the company. The company has an average rating of “Hold” and an average target price of $70.35.
Tractor Supply (TSCO) traded down 0.31% on Monday, hitting $58.64. 1,437,851 shares of the stock traded hands. The firm’s 50 day moving average is $61.06 and its 200 day moving average is $58.48. Tractor Supply has a 52 week low of $49.87 and a 52 week high of $78.25. The stock has a market cap of $7.43 billion, a price-to-earnings ratio of 17.72 and a beta of 1.30.
Tractor Supply (NASDAQ:TSCO) last posted its earnings results on Wednesday, July 26th. The specialty retailer reported $1.25 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.27 by ($0.02). The company had revenue of $2.02 billion for the quarter, compared to analyst estimates of $2.02 billion. Tractor Supply had a return on equity of 30.56% and a net margin of 6.16%. The business’s quarterly revenue was up 8.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.16 EPS. Equities analysts anticipate that Tractor Supply will post $3.25 earnings per share for the current year.
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Several institutional investors have recently made changes to their positions in the stock. New Amsterdam Partners LLC NY grew its holdings in shares of Tractor Supply by 0.7% during the 2nd quarter. New Amsterdam Partners LLC NY now owns 6,893 shares of the specialty retailer’s stock valued at $374,000 after purchasing an additional 50 shares during the last quarter. Mount Vernon Associates Inc. MD grew its holdings in shares of Tractor Supply by 0.4% during the 2nd quarter. Mount Vernon Associates Inc. MD now owns 17,380 shares of the specialty retailer’s stock valued at $942,000 after purchasing an additional 75 shares during the last quarter. Cullen Frost Bankers Inc. grew its holdings in shares of Tractor Supply by 3.7% during the 2nd quarter. Cullen Frost Bankers Inc. now owns 5,664 shares of the specialty retailer’s stock valued at $307,000 after purchasing an additional 200 shares during the last quarter. Virginia Retirement Systems ET AL grew its holdings in shares of Tractor Supply by 4.9% during the 2nd quarter. Virginia Retirement Systems ET AL now owns 4,300 shares of the specialty retailer’s stock valued at $233,000 after purchasing an additional 200 shares during the last quarter. Finally, Allegis Investment Advisors LLC grew its holdings in shares of Tractor Supply by 1.7% during the 2nd quarter. Allegis Investment Advisors LLC now owns 12,942 shares of the specialty retailer’s stock valued at $702,000 after purchasing an additional 216 shares during the last quarter. 91.97% of the stock is currently owned by institutional investors.
Tractor Supply Company Profile
Tractor Supply Company is an operator of rural lifestyle retail stores in the United States. The Company is focused on supplying the needs of recreational farmers and ranchers and others, as well as tradesmen and small businesses. It is engaged in the retail sale of products that support the rural lifestyle.
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