This trade activity should not be overlooked: DICK’S Sporting Goods Inc. (DKS)

DICK’S Sporting Goods Inc. (NYSE: DKS) stock fell -1.76% on Friday to $106.53 against a previous-day closing price of $108.44. With 2.14 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.54 million shares. During the session, the Specialty Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $108.50 whereas the lowest price it dropped to was $105.50. The 52-week range on DKS shows that it touched its highest point at $142.78 and its lowest point at $63.45 during that stretch. It currently has a 1-year price target of $125.06. With its current market cap of 8.64 billion, DKS has annualized dividend of $1.95 while the current yield stands at 1.83%. Beta for the stock currently stands at 1.54.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DKS was down-trending over the past week, with a drop of -6.82%, but this was down by -4.15% over a month. Three-month performance surged to 36.84% while six-month performance fell -0.95%. The stock lost -20.95% in the past year, while it has lost -7.36% so far this year. A look at the trailing 12-month EPS for DKS yields 11.52 with Next year EPS estimates of 11.75. For the next quarter, that number is 2.15. This implies an EPS growth rate of 142.30% for this year and 3.46% for next year. EPS is expected to decline by -7.90% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 40.20%.

Float and Shares Shorts:

At present, 75.61 million DKS shares are outstanding with a float of 52.95 million shares on hand for trading. On Jul 14, 2022, short shares totaled 14.64 million, which was 18.18% higher than short shares on Jun 14, 2022. In addition to Mr. Edward W. Stack as the firm’s Exec. Chairman, Ms. Lauren R. Hobart serves as its Pres, CEO & Director.

Institutional Ownership:

Through their ownership of 110.86% of DKS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 7.87% of DKS, in contrast to 59.18% held by mutual funds. Shares owned by individuals account for 53.34%. As the largest shareholder in DKS with 12.13% of the stake, Fidelity Management & Research Co holds 6,744,667 shares worth 6,744,667. A second-largest stockholder of DKS, Lone Pine Capital LLC, holds 5,015,154 shares, controlling over 9.02% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in DKS, holding 4,999,183 shares or 8.99% stake. With a 4.21% stake in DKS, the Fidelity Contrafund is the largest stakeholder. A total of 2,338,116 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 3.07% of DKS stock, is the second-largest Mutual Fund holder. It holds 1,704,532 shares valued at 181.31 million. Vanguard Total Stock Market Index holds 2.88% of the stake in DKS, owning 1,599,452 shares worth 170.13 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DKS since 26 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 12 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DKS analysts setting a high price target of $160.00 and a low target of $100.00, the average target price over the next 12 months is $124.78. Based on these targets, DKS could surge 50.19% to reach the target high and fall by -6.13% to reach the target low. Reaching the average price target will result in a growth of 17.13% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DKS will report FY 2023 earnings on 03/07/2023. Analysts have provided yearly estimates in a range of $12.56 being high and $10.40 being low. For DKS, this leads to a yearly average estimate of $11.45. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. DICK’S Sporting Goods Inc. surprised analysts by $0.09 when it reported $3.68 EPS against a consensus estimate of $3.59. The surprise factor in the prior quarter was $0.33. Based on analyst estimates, the high estimate for the next quarter is $2.79 and the low estimate is $1.79. The average estimate for the next quarter is thus $2.19.

Summary of Insider Activity:

Insiders traded DKS stock several times over the past three months with 5 Buys and 8 Sells. In these transactions, 73,289 shares were bought while 83,138 shares were sold. The number of buy transactions has increased to 54 while that of sell transactions has risen to 46 over the past year. The total number of shares bought during that period was 906,682 while 3,637,817 shares were sold.

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