Prepare Yourself for Liftoff: Nordstrom Inc. (JWN)

Nordstrom Inc. (NYSE: JWN) stock jumped 7.21% on Monday to $18.73 against a previous-day closing price of $17.47. With 8.75 million shares changed hands, the volume of the stock remained heavier than its average volume of 5.21 million shares. During the session, the Department Stores company that operates in wider Consumer Cyclical sector, reached to the highest price of $19.09 whereas the lowest price it dropped to was $17.48. The 52-week range on JWN shows that it touched its highest point at $29.59 and its lowest point at $15.52 during that stretch. It currently has a 1-year price target of $17.69. With its current market cap of 2.99 billion, JWN has annualized dividend of $0.76 while the current yield stands at 4.06%. Beta for the stock currently stands at 2.21.

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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 JWN was up-trending over the past week, with a rise of 5.58%, but this was up by 13.65% over a month. Three-month performance dropped to -3.50% while six-month performance fell -20.43%. The stock lost -10.38% in the past year, while it has gained 16.05% so far this year. A look at the trailing 12-month EPS for JWN yields 1.93 with Next year EPS estimates of 2.03. For the next quarter, that number is 0.72. This implies an EPS growth rate of 125.00% for this year and 14.30% for next year. EPS is expected to grow by 16.53% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -11.50%.

Float and Shares Shorts:

At present, 159.50 million JWN shares are outstanding with a float of 97.30 million shares on hand for trading. On Oct 13, 2022, short shares totaled 22.2 million, which was 13.95% higher than short shares on Sep 14, 2022. In addition to Mr. Erik B. Nordstrom as the firm’s CEO & Director, Mr. Peter E. Nordstrom serves as its Pres, Director & Chief Brand Officer.


Institutional Ownership:

Through their ownership of 61.04% of JWN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.90% of JWN, in contrast to 32.66% held by mutual funds. Shares owned by individuals account for 25.41%. As the largest shareholder in JWN with 6.44% of the stake, The Vanguard Group, Inc. holds 10,304,224 shares worth 10,304,224. A second-largest stockholder of JWN, BlackRock Fund Advisors, holds 8,590,875 shares, controlling over 5.37% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in JWN, holding 5,008,300 shares or 3.13% stake. With a 2.15% stake in JWN, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 3,436,683 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.82% of JWN stock, is the second-largest Mutual Fund holder. It holds 2,913,929 shares valued at 47.03 million. Vanguard Small Cap Index Fund holds 1.54% of the stake in JWN, owning 2,468,653 shares worth 39.84 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for JWN since 21 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 4 suggest SELL ratings. Of the remaining analysts, 11 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 3 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With JWN analysts setting a high price target of $22.00 and a low target of $12.00, the average target price over the next 12 months is $17.44. Based on these targets, JWN could surge 17.46% to reach the target high and fall by -35.93% to reach the target low. Reaching the average price target will result in a decline of -6.89% 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. JWN will report FY 2023 earnings on 03/02/2023. Analysts have provided yearly estimates in a range of $2.32 being high and $1.53 being low. For JWN, this leads to a yearly average estimate of $1.70. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Nordstrom Inc. surprised analysts by $0.05 when it reported $0.20 EPS against a consensus estimate of $0.15. The surprise factor in the prior quarter was $0.00. Based on analyst estimates, the high estimate for the next quarter is $1.38 and the low estimate is $0.57. The average estimate for the next quarter is thus $0.70.

Summary of Insider Activity:

Insiders traded JWN stock several times over the past three months with 4 Buys and 5 Sells. In these transactions, 1,870 shares were bought while 2,711 shares were sold. The number of buy transactions has increased to 24 while that of sell transactions has risen to 27 over the past year. The total number of shares bought during that period was 214,843 while 163,439 shares were sold.

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