Today: The Zacks Investment Research lowers the Stock rating of Dick’s Sporting Goods Inc. (DKS)

Today: The Zacks Investment Research lowers the Stock rating of Dick’s Sporting Goods Inc. (DKS)

Dick’s Sporting Goods Inc. (NYSE:DKS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday.

According to Zacks, “Scoring a hat trick with earnings beat, DICK’S Sporting posted solid third-quarter fiscal 2016 results, driven by robust comps, gross margin expansion and tough inventory management. Further, the company is gaining from bankruptcy declared by major rivals like the Sports Authority, which is also expected to benefit its ongoing performance. Based on the robust results and expectations of market share gains in the future, the company’s management raised its fiscal 2016 view. However, the company’s guidance for the fourth quarter remained bleak, hinting at a weaker-than-expected holiday season – toning down investors’ optimism. Also, the company remains prone to macroeconomic challenges and stiff competition, which remain threats. Nonetheless, DICK’S Sporting’s constant shareholder-friendly moves, as well as focus on store expansion and undertaking investments in omni-channel business, bode well.”

A number of other equities analysts have also recently commented on DKS. Vetr cut Dick’s Sporting Goods from a “buy” rating to a “hold” rating and set a $53.33 target price on the stock. in a report on Monday, August 1st. Citigroup Inc. raised their target price on Dick’s Sporting Goods from $50.00 to $58.00 and gave the stock a “buy” rating in a report on Tuesday, August 2nd. Goldman Sachs Group Inc. raised their target price on Dick’s Sporting Goods from $53.00 to $56.00 and gave the stock a “buy” rating in a report on Wednesday, August 3rd. Cleveland Research raised Dick’s Sporting Goods from a “neutral” rating to a “buy” rating and set a $59.00 target price on the stock in a report on Friday, August 5th. Finally, Wolfe Research raised Dick’s Sporting Goods from a “peer perform” rating to an “outperform” rating in a report on Tuesday, August 9th. One research analyst has rated the stock with a sell rating, ten have given a hold rating and twenty-two have assigned a buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average price target of $61.26.

Shares of Dick’s Sporting Goods (NYSE:DKS) traded down 1.16% during midday trading on Monday, reaching $59.53. The company’s stock had a trading volume of 907,807 shares. The company’s 50-day moving average price is $57.33 and its 200-day moving average price is $52.16. The company has a market cap of $6.58 billion, a PE ratio of 20.61 and a beta of 0.71. Dick’s Sporting Goods has a 12 month low of $33.44 and a 12 month high of $62.88.

Dick’s Sporting Goods (NYSE:DKS) last announced its earnings results on Tuesday, November 15th. The sporting goods retailer reported $0.48 EPS for the quarter, topping the Zacks’ consensus estimate of $0.42 by $0.06. Dick’s Sporting Goods had a return on equity of 18.15% and a net margin of 4.25%. The company had revenue of $1.87 billion for the quarter, compared to analysts’ expectations of $1.77 billion. During the same period last year, the firm earned $0.45 EPS. Dick’s Sporting Goods’s revenue for the quarter was up 10.2% compared to the same quarter last year. On average, equities analysts anticipate that Dick’s Sporting Goods will post $3.10 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 30th. Investors of record on Friday, December 9th will be issued a dividend of $0.1513 per share. This represents a $0.61 annualized dividend and a yield of 1.00%. The ex-dividend date is Wednesday, December 7th. Dick’s Sporting Goods’s payout ratio is 21.11%.

In related news, CFO Lee J. Belitsky sold 15,000 shares of Dick’s Sporting Goods stock in a transaction that occurred on Thursday, November 17th. The shares were sold at an average price of $58.50, for a total transaction of $877,500.00. Following the transaction, the chief financial officer now directly owns 131,623 shares of the company’s stock, valued at $7,699,945.50. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Lauren R. Hobart sold 24,015 shares of Dick’s Sporting Goods stock in a transaction that occurred on Friday, November 18th. The shares were sold at an average price of $58.45, for a total transaction of $1,403,676.75. Following the transaction, the executive vice president now directly owns 57,930 shares in the company, valued at $3,386,008.50. The disclosure for this sale can be found here. Corporate insiders own 22.96% of the company’s stock.

Institutional investors have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD raised its position in Dick’s Sporting Goods by 2,269.5% in the third quarter. Price T Rowe Associates Inc. MD now owns 4,808,507 shares of the sporting goods retailer’s stock valued at $272,739,000 after buying an additional 4,605,573 shares in the last quarter. PNC Financial Services Group Inc. raised its position in Dick’s Sporting Goods by 2,970.6% in the third quarter. PNC Financial Services Group Inc. now owns 873,055 shares of the sporting goods retailer’s stock valued at $49,519,000 after buying an additional 844,622 shares in the last quarter. TimesSquare Capital Management LLC purchased a new position in Dick’s Sporting Goods during the second quarter valued at about $23,666,000. GLG Partners LP purchased a new position in Dick’s Sporting Goods during the second quarter valued at about $19,853,000. Finally, Peregrine Capital Management LLC purchased a new position in Dick’s Sporting Goods during the third quarter valued at about $24,156,000. 70.79% of the stock is currently owned by institutional investors.

Dick’s Sporting Goods Company Profile

DICK’S Sporting Goods, Inc is an omni-channel sporting goods retailer offering an assortment of sports equipment, apparel, footwear and accessories in its specialty retail stores in the eastern United States. The Company also owns and operates Golf Galaxy, Field & Stream and other specialty concept stores, as well as e-commerce Websites at www.DICKS.com, www.golfgalaxy.com, www.fieldandstreamshop.com and www.caliastudio.com.

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