Nordstrom, Inc. (JWN) Rating Lowered to Sell at Zacks Investment Research
Nordstrom, Inc. (NYSE:JWN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “Nordstrom has underperformed the industry in the last three months. Though the company’s growth strategy bodes well, investments toward occupancy, technology, supply chain and marketing are likely to weigh upon its cost and margin performance. The company’s merchandise margin was hurt by higher occupancy expenses related to new Rack and Canada stores in the fiscal third quarter, leading to lower gross margin. Moreover, SG&A expenses increased in the quarter due to higher technology and supply chain expenses. Additionally, the company expects these hurdles to continue hurting results in fiscal 2017. However, third-quarter fiscal 2017 marked sixth straight quarter of earnings beat, while sales topped estimates for the second consecutive quarter. Results gained from the smooth execution of customer strategy along with disciplined inventory and expense management. Sales growth in Nordstrom Rack and solid e-commerce sales also aided results.”
Several other brokerages also recently weighed in on JWN. Robert W. Baird lowered their price objective on Nordstrom from $50.00 to $43.00 and set a “neutral” rating for the company in a research report on Friday. Cowen and Company reiterated an “outperform” rating and issued a $53.00 price objective (up previously from $49.00) on shares of Nordstrom in a research report on Wednesday, September 13th. KeyCorp set a $55.00 price objective on Nordstrom and gave the company a “buy” rating in a research report on Wednesday, October 11th. BidaskClub downgraded Nordstrom from a “buy” rating to a “hold” rating in a research report on Saturday, August 12th. Finally, Bank of America Corporation lowered their price objective on Nordstrom from $40.00 to $35.00 and set an “underperform” rating for the company in a research report on Friday. Five analysts have rated the stock with a sell rating, sixteen have assigned a hold rating and seven have issued a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $45.33.
Nordstrom (NYSE JWN) traded down $1.31 during trading hours on Tuesday, reaching $38.72. The company had a trading volume of 2,871,800 shares, compared to its average volume of 2,928,584. The company has a market cap of $6,669.00, a P/E ratio of 12.83, a price-to-earnings-growth ratio of 2.26 and a beta of 0.84. Nordstrom has a one year low of $37.79 and a one year high of $62.82. The company has a quick ratio of 0.30, a current ratio of 1.00 and a debt-to-equity ratio of 3.14.
Nordstrom (NYSE:JWN) last announced its quarterly earnings data on Thursday, November 9th. The specialty retailer reported $0.67 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.63 by $0.04. Nordstrom had a return on equity of 67.44% and a net margin of 3.25%. The firm had revenue of $3.54 billion during the quarter, compared to the consensus estimate of $3.50 billion. During the same quarter in the previous year, the company posted $0.84 earnings per share. The business’s revenue was up 2.0% on a year-over-year basis. research analysts anticipate that Nordstrom will post 2.95 EPS for the current fiscal year.
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Institutional investors have recently added to or reduced their stakes in the business. San Francisco Sentry Investment Group CA lifted its holdings in shares of Nordstrom by 1,752.0% during the third quarter. San Francisco Sentry Investment Group CA now owns 2,315 shares of the specialty retailer’s stock valued at $109,000 after purchasing an additional 2,190 shares in the last quarter. Sei Investments Co. lifted its holdings in shares of Nordstrom by 32.0% during the second quarter. Sei Investments Co. now owns 3,177 shares of the specialty retailer’s stock valued at $152,000 after purchasing an additional 771 shares in the last quarter. Mosaic Family Wealth LLC lifted its holdings in shares of Nordstrom by 8.2% during the second quarter. Mosaic Family Wealth LLC now owns 3,195 shares of the specialty retailer’s stock valued at $153,000 after purchasing an additional 242 shares in the last quarter. James Investment Research Inc. bought a new position in shares of Nordstrom during the second quarter valued at $156,000. Finally, Exane Derivatives bought a new position in shares of Nordstrom during the second quarter valued at $162,000. 62.35% of the stock is currently owned by institutional investors and hedge funds.
Nordstrom Company Profile
Nordstrom, Inc is a fashion specialty retailer in the United States. The Company’s segments include Retail and Credit. As of March 20, 2017, the Company operated 344 the United States stores located in 40 states as well as an e-commerce business. The Company also offers its customers a variety of payment products and services, including credit and debit cards.
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