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

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

Analysts Set New Price Targets

A number of brokerages recently issued reports on DKS. Truist Financial set a $245.00 target price on shares of DICK’S Sporting Goods in a research report on Tuesday, March 11th. Morgan Stanley boosted their price objective on shares of DICK’S Sporting Goods from $245.00 to $255.00 and gave the stock an “overweight” rating in a report on Tuesday, January 21st. Citigroup reiterated a “neutral” rating and issued a $220.00 target price (down previously from $230.00) on shares of DICK’S Sporting Goods in a research note on Wednesday, March 12th. Stifel Nicolaus lowered their price target on DICK’S Sporting Goods from $240.00 to $226.00 and set a “hold” rating on the stock in a research note on Wednesday, March 12th. Finally, Guggenheim reiterated a “neutral” rating on shares of DICK’S Sporting Goods in a research report on Wednesday, March 12th. Nine research analysts have rated the stock with a hold rating and twelve have given a buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $245.50.

DICK’S Sporting Goods Stock Performance

The stock has a 50 day moving average price of $219.03 and a two-hundred day moving average price of $216.03. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.72 and a quick ratio of 0.56. The company has a market capitalization of $14.88 billion, a price-to-earnings ratio of 13.05, a price-to-earnings-growth ratio of 2.47 and a beta of 1.53.

DICK’S Sporting Goods (NYSE:DKS) last posted its quarterly earnings data on Tuesday, March 11th. The sporting goods retailer reported $3.62 earnings per share 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 during the quarter, compared to analysts’ expectations of $3.76 billion. During the same quarter last year, the company posted $3.85 EPS. The company’s quarterly revenue was up .5% compared to the same quarter last year. On average, analysts predict that DICK’S Sporting Goods, Inc. will post 13.89 EPS for the current fiscal year.

DICK’S Sporting Goods Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, April 11th. Shareholders of record on Friday, March 28th will be given a $1.2125 dividend. This represents a $4.85 dividend on an annualized basis and a yield of 2.66%. This is a positive change from DICK’S Sporting Goods’s previous quarterly dividend of $1.10. The ex-dividend date of this dividend is Friday, March 28th. DICK’S Sporting Goods’s dividend payout ratio (DPR) is presently 34.54%.

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

Insider Activity

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

Institutional Investors Weigh In On DICK’S Sporting Goods

A number of institutional investors have recently made changes to their positions in the stock. Greenleaf Trust boosted its holdings in DICK’S Sporting Goods by 3.0% during the fourth quarter. Greenleaf Trust now owns 1,721 shares of the sporting goods retailer’s stock worth $394,000 after buying an additional 50 shares during the last quarter. Independent Advisor Alliance boosted its stake in DICK’S Sporting Goods by 5.4% during the 4th quarter. Independent Advisor Alliance now owns 1,026 shares of the sporting goods retailer’s stock worth $235,000 after acquiring an additional 53 shares during the last quarter. Atria Wealth Solutions Inc. boosted its stake in DICK’S Sporting Goods by 2.2% during the 4th quarter. Atria Wealth Solutions Inc. now owns 2,521 shares of the sporting goods retailer’s stock worth $577,000 after acquiring an additional 54 shares during the last quarter. EP Wealth Advisors LLC grew its holdings in DICK’S Sporting Goods by 5.9% during the fourth quarter. EP Wealth Advisors LLC now owns 1,016 shares of the sporting goods retailer’s stock valued at $232,000 after purchasing an additional 57 shares during the period. Finally, Stonegate Investment Group LLC increased its stake in DICK’S Sporting Goods by 2.9% in the fourth quarter. Stonegate Investment Group LLC now owns 2,066 shares of the sporting goods retailer’s stock valued at $473,000 after purchasing an additional 58 shares in the last quarter. 89.83% of the stock is owned by institutional investors and hedge funds.

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.