DICK'S Sporting Goods (NYSE:DKS) Shares Gap Up - Time to Buy?

DICK'S Sporting Goods, Inc. (NYSE:DKS - Get Free Report)'s share price gapped up prior to trading on Wednesday . The stock had previously closed at $174.22, but opened at $184.55. DICK'S Sporting Goods shares last traded at $177.56, with a volume of 1,323,800 shares trading hands.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the company. Argus raised their price target on DICK'S Sporting Goods from $255.00 to $280.00 and gave the company a "buy" rating in a research note on Wednesday, January 29th. Stifel Nicolaus dropped their price objective on DICK'S Sporting Goods from $226.00 to $192.00 and set a "hold" rating on the stock in a report on Thursday, April 10th. Truist Financial set a $245.00 price objective on DICK'S Sporting Goods in a report on Tuesday, March 11th. Citigroup reaffirmed a "neutral" rating and set a $220.00 price objective (down previously from $230.00) on shares of DICK'S Sporting Goods in a report on Wednesday, March 12th. Finally, Loop Capital dropped their price objective on DICK'S Sporting Goods from $195.00 to $180.00 and set a "hold" rating on the stock in a report on Friday, May 16th. One equities research analyst has rated the stock with a sell rating, ten have given a hold rating and ten have issued a buy rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $227.89.

DICK'S Sporting Goods Stock Performance

The company has a quick ratio of 0.56, a current ratio of 1.72 and a debt-to-equity ratio of 0.48. The firm has a fifty day moving average of $189.33 and a 200-day moving average of $210.28. The stock has a market capitalization of $14.22 billion, a price-to-earnings ratio of 12.72, a PEG ratio of 2.47 and a beta of 1.16.

DICK'S Sporting Goods (NYSE:DKS - Get Free Report) last released its quarterly earnings results on Wednesday, May 28th. The sporting goods retailer reported $3.37 earnings per share for the quarter, hitting the consensus estimate of $3.37. The company had revenue of $3.16 billion during the quarter, compared to the consensus estimate of $3.12 billion. DICK'S Sporting Goods had a return on equity of 42.00% and a net margin of 8.65%. As a group, sell-side analysts anticipate that DICK'S Sporting Goods, Inc. will post 13.89 EPS for the current year.

DICK'S Sporting Goods Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, April 11th. Shareholders of record on Friday, March 28th were given a dividend of $1.2125 per share. This represents a $4.85 dividend on an annualized basis and a yield of 2.72%. The ex-dividend date was Friday, March 28th. This is an increase from DICK'S Sporting Goods's previous quarterly dividend of $1.10. DICK'S Sporting Goods's payout ratio is 34.54%.

DICK'S Sporting Goods announced that its board has initiated a share buyback plan 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 shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Wealthfront Advisers LLC acquired a new stake in DICK'S Sporting Goods during the fourth quarter valued at approximately $1,893,210,000. Wellington Management Group LLP grew its holdings in DICK'S Sporting Goods by 416.9% in the 1st quarter. Wellington Management Group LLP now owns 2,829,780 shares of the sporting goods retailer's stock worth $570,370,000 after buying an additional 2,282,300 shares in the last quarter. Norges Bank bought a new position in DICK'S Sporting Goods in the 4th quarter worth approximately $221,693,000. Westfield Capital Management Co. LP lifted its position in DICK'S Sporting Goods by 1,899.2% in the first quarter. Westfield Capital Management Co. LP now owns 630,566 shares of the sporting goods retailer's stock worth $127,097,000 after purchasing an additional 599,025 shares during the period. Finally, Vanguard Group Inc. lifted its position in shares of DICK'S Sporting Goods by 8.8% during the 1st quarter. Vanguard Group Inc. now owns 5,850,223 shares of the sporting goods retailer's stock valued at $1,179,171,000 after acquiring an additional 471,217 shares during the last quarter. Institutional investors and hedge funds own 89.83% of the company's stock.

DICK'S Sporting Goods Company Profile

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.

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