Zacks Investment Research downgraded shares of Dicks Sporting Goods (NYSE:DKS) from a buy rating to a hold rating in a report released on Tuesday, Zacks.com reports. They currently have $36.00 target price on the sporting goods retailer’s stock.
According to Zacks, “DICK’S Sporting has outperformed the industry year to date on the back of a robust earnings surprise trend and the stock's sound fundamentals. Notably, the company has reported positive earnings surprise in seven of the last eight quarters, with a beat in the second-quarter fiscal 2019. Moreover, the company’s merchandising strategy and omni-channel efforts bode well. It is also poised to gain from the removal of the hunting category from its stores, which is likely to boost comps. Driven by these efforts, the company raised its earnings outlook for fiscal 2019. However, higher shipping and fulfillment costs stemming from strong e-commerce growth, as well as increased freight costs, remain a threat to margins. Further, rise in tariffs on imports from China is likely to hurt profitability in the near term.”
Several other brokerages have also recently issued reports on DKS. ValuEngine cut Dicks Sporting Goods from a sell rating to a strong sell rating in a report on Thursday, August 1st. Morgan Stanley set a $36.00 price objective on Dicks Sporting Goods and gave the stock a hold rating in a report on Thursday, August 22nd. UBS Group lifted their price objective on Dicks Sporting Goods from $36.00 to $37.00 and gave the stock a neutral rating in a report on Friday, August 23rd. Goldman Sachs Group initiated coverage on Dicks Sporting Goods in a research report on Thursday, July 11th. They set a neutral rating and a $38.00 price target for the company. Finally, Citigroup set a $37.00 price target on Dicks Sporting Goods and gave the stock a hold rating in a research report on Friday, August 23rd. One analyst has rated the stock with a sell rating, eleven have assigned a hold rating and three have issued a buy rating to the stock. The stock presently has an average rating of Hold and an average price target of $39.92.
Dicks Sporting Goods (NYSE:DKS) last issued its quarterly earnings data on Thursday, August 22nd. The sporting goods retailer reported $1.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.21 by $0.05. The firm had revenue of $2.26 billion during the quarter, compared to analysts’ expectations of $2.21 billion. Dicks Sporting Goods had a return on equity of 16.96% and a net margin of 3.64%. Dicks Sporting Goods’s revenue was up 3.8% on a year-over-year basis. During the same period in the previous year, the firm posted $1.20 earnings per share. As a group, equities research analysts predict that Dicks Sporting Goods will post 3.39 earnings per share for the current year.
The business also recently declared a quarterly dividend, which will be paid on Friday, September 27th. Shareholders of record on Friday, September 13th will be given a dividend of $0.275 per share. This represents a $1.10 annualized dividend and a yield of 3.23%. The ex-dividend date is Thursday, September 12th. Dicks Sporting Goods’s payout ratio is 33.95%.
A number of institutional investors have recently added to or reduced their stakes in DKS. HS Management Partners LLC purchased a new stake in shares of Dicks Sporting Goods in the second quarter valued at $70,242,000. D. E. Shaw & Co. Inc. grew its position in shares of Dicks Sporting Goods by 77.8% in the second quarter. D. E. Shaw & Co. Inc. now owns 2,198,994 shares of the sporting goods retailer’s stock valued at $76,151,000 after purchasing an additional 962,473 shares during the period. Nuveen Asset Management LLC grew its position in shares of Dicks Sporting Goods by 394.8% in the second quarter. Nuveen Asset Management LLC now owns 740,262 shares of the sporting goods retailer’s stock valued at $25,636,000 after purchasing an additional 590,644 shares during the period. William Blair Investment Management LLC purchased a new stake in shares of Dicks Sporting Goods in the first quarter valued at $18,376,000. Finally, Dimensional Fund Advisors LP grew its position in shares of Dicks Sporting Goods by 10.0% in the fourth quarter. Dimensional Fund Advisors LP now owns 4,810,276 shares of the sporting goods retailer’s stock valued at $150,081,000 after purchasing an additional 437,629 shares during the period. 79.35% of the stock is owned by institutional investors.
About Dicks Sporting Goods
Dick's Sporting Goods, Inc operates as a sporting goods retailer primarily in the eastern United States. It provides hardlines, including sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear products; apparel; and footwear and accessories. The company also owns and operates Golf Galaxy, Field & Stream, and other specialty concept stores; and e-commerce Websites, as well as Dick's Team Sports HQ, a youth sports digital platform that offers free league management services, mobile apps, free league management services, communications and live scorekeeping, custom uniforms and fan wear, and access to donations and sponsorships.
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