Tractor Supply Company Shares Plummet After Two Downgrades

By Markets MarketWatch Pulse

Shares of Tractor Supply Company dropped 13% in premarket trade Thursday after two downgrades of the company's stock. The downgrades came after the company cut its 2016 outlook Wednesday afternoon and issued third-quarter net sales guidance of $1.54 billion to $1.55 billion, below the FactSet consensus of $1.57 billion. The company said the lowered guidance was partly due to weak sales in energy producing regions. Wedbush analysts downgraded the stock to neutral from outperform and cut the price target to $72, saying the company is suffering from these macro trends but also from "limited sales drivers" recently. Credit Suisse also downgraded the stock to neutral from outperform based on the guidance and expected near-term pressure on the stock. Year to date, shares have fallen 2%, compared to the S&P 500's gain of 7%.

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