DICK’S Sporting Goods (NYSE:DKS) Trading Down 15.4% – What’s Next?

DICK’S Sporting Goods, Inc. (NYSE:DKS) shares were down 15.4% during mid-day trading on Thursday . The stock traded as low as $178.85 and last traded at $178.70. Approximately 547,273 shares traded hands during mid-day trading, a decline of 51% from the average daily volume of 1,112,806 shares. The stock had previously closed at $211.32.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on DKS shares. Telsey Advisory Group reissued an “outperform” rating and issued a $250.00 price objective on shares of DICK’S Sporting Goods in a report on Friday, March 14th. Argus upped their price objective on shares of DICK’S Sporting Goods from $255.00 to $280.00 and gave the stock a “buy” rating in a research report on Wednesday, January 29th. Truist Financial set a $245.00 price objective on DICK’S Sporting Goods in a report on Tuesday, March 11th. TD Cowen upped their price objective on shares of DICK’S Sporting Goods from $270.00 to $294.00 and gave the company a “buy” rating in a research note on Wednesday, January 8th. Finally, Robert W. Baird dropped their target price on shares of DICK’S Sporting Goods from $235.00 to $230.00 and set a “neutral” rating on the stock in a research report on Wednesday, March 12th. Nine investment analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $245.50.

DICK’S Sporting Goods Trading Down 12.7 %

The stock has a 50-day moving average price of $221.61 and a two-hundred day moving average price of $216.45. The stock has a market capitalization of $15.02 billion, a PE ratio of 13.18, a PEG ratio of 2.47 and a beta of 1.53. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.56 and a current ratio of 1.72.

DICK’S Sporting Goods (NYSE:DKS) last released its quarterly earnings data on Tuesday, March 11th. The sporting goods retailer reported $3.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.47 by $0.15. DICK’S Sporting Goods had a net margin of 8.65% and a return on equity of 42.00%. The firm had revenue of $3.89 billion for the quarter, compared to analysts’ expectations of $3.76 billion. During the same quarter last year, the business posted $3.85 earnings per share. The company’s revenue for the quarter was up .5% compared to the same quarter last year. As a group, equities analysts forecast that DICK’S Sporting Goods, Inc. will post 13.89 earnings per share for the current year.

DICK’S Sporting Goods Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, April 11th. Investors of record on Friday, March 28th will be given a dividend of $1.2125 per share. This is a boost from DICK’S Sporting Goods’s previous quarterly dividend of $1.10. The ex-dividend date is Friday, March 28th. This represents a $4.85 dividend on an annualized basis and a yield of 2.63%. DICK’S Sporting Goods’s dividend payout ratio is presently 34.54%.

DICK’S Sporting Goods announced that its Board of Directors has authorized a share buyback program on Tuesday, March 11th that allows the company to buyback $3.00 billion in outstanding shares. This buyback authorization allows the sporting goods retailer to reacquire up to 18.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In other news, Chairman Edward W. Stack sold 160,600 shares of the business’s stock in a transaction that occurred on Monday, January 6th. The stock was sold at an average price of $229.25, for a total transaction of $36,817,550.00. Following the transaction, the chairman now directly owns 8,362,128 shares in the company, valued at $1,917,017,844. The trade was a 1.88 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Julie Lodge-Jarrett sold 5,000 shares of the firm’s stock in a transaction dated Friday, January 17th. The stock was sold at an average price of $227.99, for a total transaction of $1,139,950.00. Following the sale, the executive vice president now owns 16,504 shares of the company’s stock, valued at approximately $3,762,746.96. The trade was a 23.25 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 32.03% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. MassMutual Private Wealth & Trust FSB raised its holdings in shares of DICK’S Sporting Goods by 42.5% in the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 255 shares of the sporting goods retailer’s stock valued at $51,000 after buying an additional 76 shares during the period. California State Teachers Retirement System grew its stake in DICK’S Sporting Goods by 2.2% during the 4th quarter. California State Teachers Retirement System now owns 76,354 shares of the sporting goods retailer’s stock worth $17,473,000 after purchasing an additional 1,631 shares in the last quarter. Wealth Enhancement Advisory Services LLC increased its stake in shares of DICK’S Sporting Goods by 11.1% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 9,688 shares of the sporting goods retailer’s stock worth $2,217,000 after buying an additional 970 shares during the period. Wood Tarver Financial Group LLC acquired a new stake in shares of DICK’S Sporting Goods in the 4th quarter valued at $114,000. Finally, Siemens Fonds Invest GmbH purchased a new stake in DICK’S Sporting Goods during the 4th quarter worth about $3,384,000. Hedge funds and other institutional investors own 89.83% of the company’s stock.

About DICK’S Sporting Goods

Dick’s Sporting Goods, Inc engages in the retailing of an extensive assortment of authentic sports equipment, apparel, footwear, and accessories. It also offers its products both online and through mobile applications. The company was founded by Richard T. Stack in 1948 and is headquartered in Coraopolis, PA.