Key Takeaways
- Baird has maintained an Outperform recommendation for Tractor Supply (TSCO).
- The average one-year price target for TSCO is $251.97, suggesting potential upside.
- Tractor Supply recently declared a quarterly dividend of $1.03 per share.
- Institutional ownership and fund sentiment show mixed but generally increasing interest.
Analyst Recommendations and Price Forecasts
Fintel reports that on April 19, 2023, Baird maintained its Outperform recommendation for Tractor Supply (NASDAQ:TSCO).
Analyst Price Forecast Suggests 2.76% Upside
As of April 6, 2023, the average one-year price target for Tractor Supply stands at $251.97. The price forecasts range from a low of $212.10 to a high of $286.65. This average price target represents a potential increase of 2.76% from its latest reported closing price of $245.21.
💡 The projected annual revenue for Tractor Supply is $15,389 million, representing an increase of 8.34%.
📊 The projected annual non-GAAP EPS is $10.69.
Dividend Information
Tractor Supply Declares $1.03 Dividend
On February 8, 2023, Tractor Supply declared a regular quarterly dividend of $1.03 per share, which annualizes to $4.12 per share. Shareholders of record as of February 27, 2023, received this payment on March 14, 2023. Previously, the company paid a dividend of $0.92 per share.
At the current share price of $245.21, the stock’s dividend yield is 1.68%.
Looking back over the past five years, using weekly samples, the average dividend yield has been 1.38%. The lowest recorded yield was 0.87%, and the highest was 2.08%. The standard deviation of these yields is 0.30 over 236 data points.
⚡ The current dividend yield is 1.01 standard deviations above the historical average.
📍 Additionally, the company’s dividend payout ratio is 0.42. This ratio indicates that 42% of the company’s income is paid out in dividends. A payout ratio of 1.0 would mean 100% of income is distributed. Payout ratios greater than 1.0 can suggest a company is using savings to maintain its dividend. Companies with limited growth prospects typically have higher payout ratios (0.5 to 1.0), while those with strong growth potential are expected to retain earnings for investment, resulting in lower payout ratios (0 to 0.5).
📌 The company’s 3-year dividend growth rate is 1.94%, demonstrating a consistent increase in its dividend payments over time.
Institutional Investor Activity
What are Other Shareholders Doing?
RWGFX – RiverPark holds 8K shares, representing 0.01% ownership of the company. In its prior filing, the firm reported owning 8K shares, a decrease of 5.04%. However, the firm increased its portfolio allocation in TSCO by 21.01% over the last quarter.
Advisory Services Network holds 14K shares, also representing 0.01% ownership. In its previous filing, the firm reported owning 11K shares, an increase of 16.72%. Over the last quarter, this firm increased its portfolio allocation in TSCO by 26.11%.
Hendershot Investments holds 47K shares, representing 0.04% ownership. Its prior filing showed ownership of 46K shares, an increase of 3.68%. Interestingly, the firm decreased its portfolio allocation in TSCO by 99.89% over the last quarter.
Colony Group holds 3K shares, representing 0.00% ownership. In its previous filing, the firm reported owning 1K shares, an increase of 48.69%. The firm significantly increased its portfolio allocation in TSCO by 87.82% over the last quarter.
GSRAX – Goldman Sachs Rising Dividend Growth Fund holds 18K shares, representing 0.02% ownership. In its prior filing, the firm reported owning 18K shares, an increase of 1.12%. The firm increased its portfolio allocation in TSCO by 2.32% over the last quarter.
Fund Sentiment Overview
What is the Fund Sentiment?
A total of 1833 funds or institutions are reporting positions in Tractor Supply. This represents an increase of 75 owner entities, or 4.27%, in the last quarter.
📊 The average portfolio weight dedicated to TSCO by all funds is 0.32%, an increase of 2.44%.
📍 Total shares owned by institutions have decreased by 0.16% over the last three months, amounting to 105,382K shares.
The put/call ratio for TSCO stands at 1.58, indicating a bearish outlook among options traders.
Tractor Supply Company Background
Tractor Supply Company, the largest rural lifestyle retailer in the United States, has dedicated over 80 years to serving its unique niche. It functions as a one-stop shop for recreational farmers, ranchers, and individuals who embrace the rural lifestyle. Tractor Supply offers a diverse mix of products essential for home, land, pets, and animals, emphasizing product localization, exclusive brands, and exceptional customer service tailored to the Out Here lifestyle.
With more than 40,000 Team Members, the Company integrates its physical store assets with digital capabilities to provide customers with convenient purchasing options anytime, anywhere, and in any way they choose, all at everyday low prices. As of September 26, 2020, Tractor Supply operated 1,904 stores across 49 states.
Expert Summary
Baird has reaffirmed its Outperform rating for Tractor Supply (TSCO), citing analyst price targets that suggest potential upside. The company continues to demonstrate financial health with a recent dividend increase and a reasonable payout ratio, alongside consistent dividend growth over three years. While institutional sentiment shows fluctuations, overall fund interest has increased, though options trading indicates a bearish short-term outlook.