Dick’s Sporting Goods Inc. (DKS) Lifted to Buy at Zacks Investment Research
Dick’s Sporting Goods Inc. (NYSE:DKS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday. The firm presently has a $63.00 price target on the sporting goods retailer’s stock. Zacks Investment Research’s target price would indicate a potential upside of 9.17% from the stock’s previous close.
According to Zacks, “DICK's Sporting has been gaining from the expansion of its omni-channel network, and powerful marketing and merchandising strategies. Also, the company's customer-oriented strategies, store growth plan and healthy financial status bode well. This is particularly reflected by its regular dividend payouts and constant share buybacks. With these plans underway, the company remains on track to reach its long-term revenue and store growth targets. However, the company expects to witness some near-term pressure, owing to the major liquidation going on in the sporting goods space. Stiff competition also remains a threat. Nonetheless, the company's raised fiscal 2016 earnings and comps outlook ushers in confidence about its future prospects. Estimates have been largely stable going into the third-quarter earnings release. The company has a mixed record of earnings surprises in recent quarters.”
DKS has been the topic of several other reports. Goldman Sachs Group Inc. downgraded shares of Dick’s Sporting Goods from a “buy” rating to a “neutral” rating and upped their price target for the company from $56.00 to $61.00 in a research note on Wednesday, August 17th. They noted that the move was a valuation call. B. Riley restated a “buy” rating and issued a $61.00 price target on shares of Dick’s Sporting Goods in a research note on Friday, August 12th. Credit Suisse Group AG restated a “hold” rating and issued a $48.00 price target on shares of Dick’s Sporting Goods in a research note on Monday, July 11th. TheStreet upgraded shares of Dick’s Sporting Goods from a “hold” rating to a “buy” rating in a research note on Friday, July 29th. Finally, Forward View set a $64.00 price target on shares of Dick’s Sporting Goods and gave the company a “buy” rating in a research note on Thursday, August 18th. One equities research analyst has rated the stock with a sell rating, eleven have given a hold rating and twenty-two have issued a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and a consensus price target of $59.38.
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Shares of Dick’s Sporting Goods (NYSE:DKS) opened at 57.71 on Tuesday. Dick’s Sporting Goods has a 12 month low of $33.42 and a 12 month high of $61.94. The stock’s 50 day moving average is $58.98 and its 200 day moving average is $49.46. The firm has a market capitalization of $6.52 billion, a price-to-earnings ratio of 20.21 and a beta of 0.85.
Dick’s Sporting Goods (NYSE:DKS) last issued its quarterly earnings data on Tuesday, August 16th. The sporting goods retailer reported $0.82 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.69 by $0.13. The company had revenue of $2 billion for the quarter, compared to analyst estimates of $1.88 billion. Dick’s Sporting Goods had a net margin of 4.32% and a return on equity of 18.43%. The company’s revenue was up 8.0% on a year-over-year basis. During the same period in the prior year, the firm earned $0.77 earnings per share. Equities research analysts forecast that Dick’s Sporting Goods will post $3.06 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Friday, September 30th. Shareholders of record on Friday, September 9th were issued a dividend of $0.1513 per share. This represents a $0.61 dividend on an annualized basis and a yield of 1.05%. The ex-dividend date of this dividend was Wednesday, September 7th. Dick’s Sporting Goods’s dividend payout ratio is 21.33%.
In other news, EVP Michele Willoughby sold 36,737 shares of Dick’s Sporting Goods stock in a transaction on Thursday, August 25th. The stock was sold at an average price of $58.78, for a total transaction of $2,159,400.86. Following the sale, the executive vice president now directly owns 98,923 shares in the company, valued at approximately $5,814,693.94. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 22.96% of the company’s stock.
Several large investors have recently added to or reduced their stakes in the company. Wellington Management Group LLP acquired a new stake in Dick’s Sporting Goods during the first quarter worth approximately $103,767,000. AMP Capital Investors Ltd boosted its stake in Dick’s Sporting Goods by 167.9% in the first quarter. AMP Capital Investors Ltd now owns 62,306 shares of the sporting goods retailer’s stock worth $2,929,000 after buying an additional 39,048 shares during the last quarter. Creative Planning boosted its stake in Dick’s Sporting Goods by 84.3% in the second quarter. Creative Planning now owns 3,072 shares of the sporting goods retailer’s stock worth $138,000 after buying an additional 1,405 shares during the last quarter. W.G. Shaheen & Associates DBA Whitney & Co boosted its stake in Dick’s Sporting Goods by 3.8% in the second quarter. W.G. Shaheen & Associates DBA Whitney & Co now owns 100,704 shares of the sporting goods retailer’s stock worth $4,538,000 after buying an additional 3,679 shares during the last quarter. Finally, Johnston Asset Management LLC boosted its stake in Dick’s Sporting Goods by 35.3% in the second quarter. Johnston Asset Management LLC now owns 393,205 shares of the sporting goods retailer’s stock worth $17,718,000 after buying an additional 102,695 shares during the last quarter. Institutional investors own 72.16% of the company’s stock.
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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