Dicks Sporting Goods (NYSE:DKS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “DICK’S Sporting outperformed the industry in the last three months, driven by progress on strategic initiatives. The company’s investments in e-commerce, technology, store payroll, Team Sports HQ and private brands bode well. The company reported earnings beat for fourth-quarter fiscal 2017, marking its second straight positive earnings surprise. Moreover, earnings topped estimates for the sixth time in the last eight quarters. Alongside solid e-commerce growth, results gained from strength in Team Sports, footwear, outdoor equipment and private brands. However, top line lagged estimates in the quarter due to softness in hunting and electronic categories while margins continued to be strained. While innovations and growth of private brands are likely to ease margin pressures in fiscal 2018, the company still anticipates margins to be negative. Additionally, hunting and electronics businesses are expected remain headwinds in fiscal 2018.”
Several other equities research analysts also recently weighed in on DKS. Canaccord Genuity set a $33.00 price target on Dicks Sporting Goods and gave the stock a “hold” rating in a research report on Friday, March 9th. Wedbush reaffirmed a “neutral” rating and set a $32.00 price target (up from $28.00) on shares of Dicks Sporting Goods in a research report on Wednesday, March 7th. Credit Suisse Group set a $24.00 price target on Dicks Sporting Goods and gave the stock a “hold” rating in a research report on Tuesday. BMO Capital Markets set a $40.00 price target on Dicks Sporting Goods and gave the stock a “buy” rating in a research report on Thursday, January 11th. Finally, MKM Partners cut their price target on Dicks Sporting Goods from $30.00 to $25.00 and set an “overweight” rating on the stock in a research report on Wednesday, November 15th. Three investment analysts have rated the stock with a sell rating, seventeen have issued a hold rating and thirteen have given a buy rating to the company. Dicks Sporting Goods currently has an average rating of “Hold” and an average target price of $33.96.
Dicks Sporting Goods (NYSE:DKS) last released its earnings results on Tuesday, March 13th. The sporting goods retailer reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.20 by $0.02. Dicks Sporting Goods had a return on equity of 17.95% and a net margin of 3.54%. The firm had revenue of $2.64 billion for the quarter, compared to the consensus estimate of $2.73 billion. During the same period in the prior year, the firm earned $1.32 EPS. The firm’s revenue was up 6.5% on a year-over-year basis. sell-side analysts predict that Dicks Sporting Goods will post 3 earnings per share for the current year.
A number of institutional investors have recently modified their holdings of DKS. Cerebellum GP LLC purchased a new position in Dicks Sporting Goods in the 4th quarter valued at about $122,000. Toronto Dominion Bank lifted its stake in Dicks Sporting Goods by 169.2% in the 3rd quarter. Toronto Dominion Bank now owns 4,657 shares of the sporting goods retailer’s stock valued at $126,000 after buying an additional 2,927 shares in the last quarter. Valeo Financial Advisors LLC purchased a new position in Dicks Sporting Goods in the 3rd quarter valued at about $132,000. Delpha Capital Management LLC purchased a new position in Dicks Sporting Goods in the 4th quarter valued at about $132,000. Finally, State of Alaska Department of Revenue purchased a new position in Dicks Sporting Goods in the 4th quarter valued at about $188,000. 71.27% of the stock is currently owned by hedge funds and other institutional investors.
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About Dicks Sporting Goods
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 primarily in the eastern United States. The Company also owns and operates Golf Galaxy, Field & Stream and other specialty concept stores, and Dick’s Team Sports HQ, an all-in-one youth sports digital platform offering free league management services, mobile applications for scheduling, communications and live scorekeeping, custom uniforms and FanWear and access to donations and sponsorships.
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