Wells Fargo Believes Tractor Supply (NASDAQ: TSCO) Still Has Room to Grow

By Ryan Adsit

Wells Fargo analyst Zachary Fadem maintained a Buy rating on Tractor Supply (TSCOResearch Report) today and set a price target of $102. The company’s shares closed on Friday at $92.32, close to its 52-week high of $97.65.

Fadem wrote:

“We’re hosting investor meetings with TSCO CEO Greg Sandfort and CFO Wednesday (2/13). Since TSCO’s Q4 print (1/31) shares have recovered, yet the investor debate remains more mixed, with bears citing lack of Q4 profit flow-through (EBIT margin -96bps) despite a +5.7% comp; increasingly tough comparisons in FY19; and 2H weighted FY19 guidance (including Q1 EBIT decline). Bulls, on the other hand, see an achievable FY19 outlook (particularly in 1H), healthy comp trends (starting with ~4% in Q1), and potential EBIT margin inflection as early as Q2.”

According to TipRanks.com, Fadem is a 4-star analyst with an average return of 4.5% and a 59.0% success rate. Fadem covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Floor & Decor Holdings Inc, and Advance Auto Parts.

Tractor Supply has an analyst consensus of Moderate Buy, with a price target consensus of $98.71.

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The company has a one-year high of $97.65 and a one-year low of $58.27. Currently, Tractor Supply has an average volume of 1.56M.

Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. Most recently, in November 2018, Robert D. Mills, the EVP Chief Technology Officer of TSCO sold 20,278 shares for a total of $1,968,994.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Tractor Supply Co. engages in the retail sale of farm and ranch products. It operates retail farm & ranch stores and focuses on supplying the lifestyle needs of recreational farmers and ranchers, as well as tradesmen and small businesses. The firm operates the retail stores under the names: Tractor Supply Company, Del’s Feed & Farm Supply, and Petsense.