DICK'S Sporting Goods (NYSE:DKS) Hits New 12-Month Low - Time to Sell?

Key Points

• DICK’S Sporting Goods shares hit a new 52-week low of $120.16, following a sharp decline in analyst price targets and mixed ratings. The consensus rating is “Hold,” with an average target price of $167.20.
• The retailer’s latest quarterly results missed expectations, with EPS of $3.53 versus $3.74 expected and revenue of $5.59 billion versus $5.64 billion forecast, although revenue increased 53.2% year over year.
• Despite the stock pressure, the company announced a quarterly dividend of $1.25 per share, implying a 4.1% yield, while insiders purchased roughly $3.8 million of shares over the past 90 days.

Shares of DICK'S Sporting Goods, Inc. (NYSE:DKS - Get Free Report) reached a new 52-week low during trading on Monday . The stock traded as low as $120.16 and last traded at $120.98, with a volume of 213248 shares trading hands. The stock had previously closed at $121.15.

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. Bank of America lowered their price target on shares of DICK'S Sporting Goods from $245.00 to $200.00 and set a "buy" rating on the stock in a research report on Wednesday, August 26th. Robert W. Baird lowered shares of DICK'S Sporting Goods from an "outperform" rating to a "neutral" rating and set a $150.00 target price on the stock. in a research report on Monday, September 14th. Jefferies Financial Group set a $171.00 target price on shares of DICK'S Sporting Goods in a report on Tuesday, August 25th. Barclays dropped their price target on shares of DICK'S Sporting Goods from $280.00 to $150.00 and set an "overweight" rating for the company in a research report on Wednesday, August 26th. Finally, Wall Street Zen cut DICK'S Sporting Goods from a "hold" rating to a "sell" rating in a research note on Saturday, September 12th. Eleven research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $167.20.

DICK'S Sporting Goods Stock Performance

The firm has a market cap of $10.89 billion, a price-to-earnings ratio of 13.15, a P/E/G ratio of 2.29 and a beta of 1.11. The stock has a 50 day moving average of $175.83 and a 200 day moving average of $201.34. The company has a quick ratio of 0.36, a current ratio of 1.49 and a debt-to-equity ratio of 0.33.

DICK'S Sporting Goods (NYSE:DKS - Get Free Report) last posted its quarterly earnings data on Tuesday, August 25th. The sporting goods retailer reported $3.53 earnings per share for the quarter, missing the consensus estimate of $3.74 by ($0.21). DICK'S Sporting Goods had a return on equity of 19.21% and a net margin of 3.97%.The firm had revenue of $5.59 billion for the quarter, compared to the consensus estimate of $5.64 billion. During the same period in the prior year, the company earned $4.38 EPS. The company's revenue for the quarter was up 53.2% compared to the same quarter last year. DICK'S Sporting Goods has set its FY 2026 guidance at 11.000-12.000 EPS. As a group, analysts anticipate that DICK'S Sporting Goods, Inc. will post 11.7 EPS for the current fiscal year.

DICK'S Sporting Goods Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 11th will be given a dividend of $1.25 per share. This represents a $5.00 annualized dividend and a yield of 4.1%. The ex-dividend date is Friday, September 11th. DICK'S Sporting Goods's payout ratio is currently 53.71%.

Insiders Place Their Bets

In other DICK'S Sporting Goods news, Director Sandeep Mathrani bought 1,550 shares of DICK'S Sporting Goods stock in a transaction on Wednesday, August 26th. The shares were purchased at an average price of $128.89 per share, with a total value of $199,779.50. Following the acquisition, the director owned 11,136 shares in the company, valued at $1,435,319.04. This trade represents a 16.17% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director William Colombo purchased 913 shares of the firm's stock in a transaction dated Tuesday, September 1st. The stock was acquired at an average price of $133.19 per share, for a total transaction of $121,602.47. Following the purchase, the director owned 181,000 shares in the company, valued at approximately $24,107,390. The trade was a 0.51% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders bought 29,563 shares of company stock worth $3,843,882. 28.91% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. BlackRock Inc. bought a new stake in shares of DICK'S Sporting Goods during the 2nd quarter valued at approximately $1,501,321,000. Bank of America Corp DE bought a new position in shares of DICK'S Sporting Goods in the 2nd quarter valued at $1,024,000,000. Darsana Capital Partners LP lifted its stake in shares of DICK'S Sporting Goods by 9.1% in the 2nd quarter. Darsana Capital Partners LP now owns 1,500,000 shares of the sporting goods retailer's stock valued at $340,215,000 after acquiring an additional 125,000 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of DICK'S Sporting Goods by 1.3% during the 4th quarter. Geode Capital Management LLC now owns 1,226,792 shares of the sporting goods retailer's stock valued at $242,184,000 after acquiring an additional 16,051 shares in the last quarter. Finally, Sachem Head Capital Management LP boosted its holdings in shares of DICK'S Sporting Goods by 21.0% during the 4th quarter. Sachem Head Capital Management LP now owns 1,220,000 shares of the sporting goods retailer's stock valued at $241,523,000 after acquiring an additional 211,400 shares in 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 is a leading American sporting goods retailer that sells athletic equipment, apparel, footwear and accessories for a broad range of sports and outdoor activities. Its merchandise includes products for fitness, team sports, golf, running, hunting, fishing and camping, as well as casual and performance-oriented clothing and footwear.

The company operates through its DICK'S Sporting Goods stores and e-commerce platform, along with specialty and concept businesses including Golf Galaxy, Public Lands and House of Sport locations.

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