On Friday, Truist Securities made an adjustment to the price target for Tractor Supply Company (NASDAQ:TSCO), setting it at $63.00, a slight decrease from the previous target of $63.40. This change follows the announcement of a 5:1 stock split by the company. Despite the alteration in the price target, the firm has maintained a Buy rating on the stock. According to InvestingPro data, TSCO shares have experienced a 7.5% decline over the past week, with the stock currently trading at a P/E ratio of 26.2.
The price target adjustment comes as a direct result of the stock split, which effectively reduces the price per share while increasing the number of shares outstanding. Consequently, the new price target reflects the post-split valuation. Tractor Supply Company's shares began trading on a post-split basis starting on Friday, December 20, 2024. InvestingPro analysis reveals the company maintains a strong financial health score of 2.52, labeled as 'GOOD', with notable achievements including 15 consecutive years of dividend increases.
The analyst from Truist Securities clarified that the adjustment in the price target to $63.00 from the pre-split target of $317.00 is solely due to the stock split. This implies that the intrinsic value assessment of Tractor Supply Company by the analyst remains consistent with the earlier evaluation.
It is important to note that the analyst has confirmed that their estimates for the company are unchanged. This statement underscores that the fundamentals of Tractor Supply Company, as assessed by Truist Securities, have not been affected by the stock split.
In other recent news, Tractor Supply Co. has announced a 5-for-1 forward stock split, increasing the number of authorized shares from 400 million to 2 billion. This strategic decision is part of the company's ongoing efforts to manage its capital structure and reflects confidence in its long-term growth prospects.
In terms of earnings, Tractor Supply's Q3 results exceeded estimates, and the company has adjusted its 2024 earnings guidance to project net sales between $14.85 billion and $15 billion, with a diluted EPS between $10.10 and $10.40.
In the analyst world, Telsey Advisory Group has maintained an Outperform rating on Tractor Supply, highlighting the potential for long-term growth. Similarly, Benchmark has kept a Buy rating, while UBS and Barclays (LON:BARC) maintain neutral ratings. KeyBanc Capital Markets also held a "Sector Weight" rating, acknowledging the company's potential for growth despite potential economic challenges.
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