Traders Buy Large Volume of Call Options on DICK'S Sporting Goods (NYSE:DKS)

Key Points

• Unusually high options activity: Traders purchased 6,700 DICK’S Sporting Goods call options, 306% above the typical daily volume of 1,650 contracts.
• Analysts remain broadly positive: The stock has a consensus “Moderate Buy” rating and an average price target of $256.88, despite differing recent target revisions.
• Shares declined while fundamentals remained mixed: DKS fell 0.4% to $182.45, while quarterly revenue rose 62.7% year over year and earnings of $2.90 per share narrowly missed estimates.

DICK'S Sporting Goods, Inc. (NYSE:DKS - Get Free Report) was the target of unusually large options trading activity on Monday. Traders bought 6,700 call options on the company. This is an increase of 306% compared to the typical daily volume of 1,650 call options.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the stock. Truist Financial raised their price target on shares of DICK'S Sporting Goods from $252.00 to $270.00 and gave the company a "buy" rating in a report on Wednesday, May 27th. UBS Group upgraded shares of DICK'S Sporting Goods from a "buy" rating to a "positive" rating in a report on Monday, August 10th. The Goldman Sachs Group reiterated a "buy" rating on shares of DICK'S Sporting Goods in a report on Monday, August 3rd. Jefferies Financial Group upped their price objective on shares of DICK'S Sporting Goods from $210.00 to $224.00 and gave the company a "hold" rating in a research report on Wednesday, May 27th. Finally, JPMorgan Chase & Co. lowered their target price on DICK'S Sporting Goods from $270.00 to $245.00 and set an "overweight" rating for the company in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, DICK'S Sporting Goods has a consensus rating of "Moderate Buy" and an average target price of $256.88.

Institutional Investors Weigh In On DICK'S Sporting Goods

A number of institutional investors have recently modified their holdings of the stock. California State Teachers Retirement System grew its stake in DICK'S Sporting Goods by 20,961.0% in the second quarter. California State Teachers Retirement System now owns 15,878,288 shares of the sporting goods retailer's stock worth $3,601,355,000 after purchasing an additional 15,802,896 shares in the last quarter. BlackRock Inc. bought a new position in DICK'S Sporting Goods in the 2nd quarter valued at about $1,501,321,000. Bank of America Corp DE acquired a new position in DICK'S Sporting Goods during the 2nd quarter valued at about $1,024,000,000. State Street Corp increased its stake in DICK'S Sporting Goods by 17.7% during the 3rd quarter. State Street Corp now owns 2,606,541 shares of the sporting goods retailer's stock valued at $579,226,000 after buying an additional 391,694 shares during the period. Finally, Viking Global Investors LP bought a new stake in shares of DICK'S Sporting Goods during the 4th quarter worth about $509,371,000. Institutional investors and hedge funds own 89.83% of the company's stock.

DICK'S Sporting Goods Stock Down 0.4%

Shares of DICK'S Sporting Goods stock traded down $0.78 on Monday, hitting $182.45. 772,615 shares of the company's stock traded hands, compared to its average volume of 1,230,343. DICK'S Sporting Goods has a 52-week low of $176.07 and a 52-week high of $244.38. The company has a quick ratio of 0.38, a current ratio of 1.50 and a debt-to-equity ratio of 0.34. The stock has a market cap of $16.33 billion, a P/E ratio of 17.28, a PEG ratio of 1.60 and a beta of 1.21. The firm's 50-day moving average is $213.93 and its 200 day moving average is $211.41.

DICK'S Sporting Goods (NYSE:DKS - Get Free Report) last issued its quarterly earnings results on Wednesday, May 27th. The sporting goods retailer reported $2.90 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.91 by ($0.01). The company had revenue of $5.16 billion during the quarter, compared to the consensus estimate of $5.07 billion. DICK'S Sporting Goods had a return on equity of 22.22% and a net margin of 4.71%.The firm's quarterly revenue was up 62.7% on a year-over-year basis. During the same quarter last year, the firm posted $3.37 EPS. DICK'S Sporting Goods has set its FY 2026 guidance at 13.500-14.500 EPS. Equities analysts anticipate that DICK'S Sporting Goods will post 14.24 earnings per share for the current year.

DICK'S Sporting Goods Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 12th were given a $1.25 dividend. The ex-dividend date of this dividend was Friday, June 12th. This represents a $5.00 annualized dividend and a dividend yield of 2.7%. DICK'S Sporting Goods's payout ratio is presently 47.53%.

DICK'S Sporting Goods Company Profile

DICK'S Sporting Goods is a leading U.S.-based sporting goods retailer that sells a broad range of sports equipment, apparel, footwear and outdoor gear. The company operates an omnichannel business combining physical stores with digital sales, offering products for team sports, fitness, hunting and fishing, golf, and general active lifestyle categories. In addition to its flagship DICK'S stores, the company operates specialty formats such as Golf Galaxy and branded service offerings including team-sports sales and custom equipment solutions.

The company traces its roots to a single sporting goods outlet founded in 1948 and has since grown into a national retail chain serving customers across the United States.

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