Investing

Barclays Initiates Coverage of Tractor Supply With Overweight Recommendation

Fintel Staff

Published: February 9, 2023 3:44 am

Last Updated: February 9, 2023 10:47 am

On February 8, 2023, Barclays initiated coverage of Tractor Supply with a Overweight recommendation.

Analyst Price Forecast Suggests 8.80% Upside

As of February 9, 2023, the average one-year price target for Tractor Supply is $251.59. The forecasts range from a low of $212.10 to a high of $286.65. The average price target represents an increase of 8.80% from its latest reported closing price of $231.24.

The projected annual revenue for Tractor Supply is $15,389MM, an increase of 8.34%. The projected annual EPS is $10.69, an increase of 9.32%.

Tractor Supply Declares $0.92 Dividend

On November 3, 2022 the company declared a regular quarterly dividend of $0.92 per share ($3.68 annualized). Shareholders of record as of November 18, 2022 received the payment on December 6, 2022. Previously, the company paid $0.92 per share.

At the current share price of $231.24 / share, the stock’s dividend yield is 1.59%. Looking back five years and taking a sample every week, the average dividend yield has been 1.38%, the lowest has been 0.87%, and the highest has been 2.08%. The standard deviation of yields is 0.30 (n=236).

The current dividend yield is 0.72 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.37. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 1.63%, demonstrating that it has increased its dividend over time.

What are large shareholders doing?

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 3,303K shares representing 2.99% ownership of the company. In it’s prior filing, the firm reported owning 3,295K shares, representing an increase of 0.25%. The firm increased its portfolio allocation in TSCO by 0.21% over the last quarter.

VIMSX – Vanguard Mid-Cap Index Fund Investor Shares holds 2,558K shares representing 2.32% ownership of the company. In it’s prior filing, the firm reported owning 2,576K shares, representing a decrease of 0.68%. The firm decreased its portfolio allocation in TSCO by 0.42% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 2,516K shares representing 2.28% ownership of the company. In it’s prior filing, the firm reported owning 2,476K shares, representing an increase of 1.60%. The firm increased its portfolio allocation in TSCO by 0.77% over the last quarter.

Geode Capital Management holds 2,287K shares representing 2.07% ownership of the company. In it’s prior filing, the firm reported owning 2,269K shares, representing an increase of 0.81%. The firm increased its portfolio allocation in TSCO by 0.16% over the last quarter.

Select Equity Group holds 2,221K shares representing 2.01% ownership of the company. In it’s prior filing, the firm reported owning 2,263K shares, representing a decrease of 1.86%. The firm increased its portfolio allocation in TSCO by 2.52% over the last quarter.

What is the Fund Sentiment?

There are 1791 funds or institutions reporting positions in Tractor Supply. This is an increase of 13 owner(s) or 0.73% in the last quarter. Average portfolio weight of all funds dedicated to TSCO is 0.32%, an increase of 4.77%. Total shares owned by institutions increased in the last three months by 1.02% to 104,992K shares. The put/call ratio of TSCO is 1.93, indicating a bearish outlook.

Tractor Supply Background Information
(This description is provided by the company.)

Tractor Supply Company, the largest rural lifestyle retailer in the United States, has been passionate about serving its unique niche, as a one-stop shop for recreational farmers, ranchers and all those who enjoy living the rural lifestyle, for more than 80 years. Tractor Supply offers an extensive mix of products necessary to care for home, land, pets and animals with a focus on product localization, exclusive brands and legendary customer service that addresses the needs of the Out Here lifestyle. With more than 40,000 Team Members, the Company leverages its physical store assets with digital capabilities to offer customers the convenience of purchasing products they need anytime, anywhere and any way they choose at the everyday low prices they deserve. At September 26, 2020, the Company operated 1,904 Tractor Supply stores in 49 states.

This article originally appeared on Fintel