DICK’S Sporting Goods (NYSE:DKS) to Repurchase $3.00 billion in Shares

DICK’S Sporting Goods (NYSE:DKS) declared that its board has authorized a share buyback program on Tuesday, March 11th, RTT News reports. The company plans to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the sporting goods retailer to purchase up to 18.5% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its stock is undervalued.

Analysts Set New Price Targets

A number of analysts recently commented on the stock. TD Cowen boosted their price objective on shares of DICK’S Sporting Goods from $270.00 to $294.00 and gave the stock a “buy” rating in a report on Wednesday, January 8th. Citigroup reissued a “neutral” rating and set a $220.00 price target (down previously from $230.00) on shares of DICK’S Sporting Goods in a research note on Wednesday. DA Davidson dropped their price objective on DICK’S Sporting Goods from $280.00 to $273.00 and set a “buy” rating for the company in a research note on Wednesday. Morgan Stanley lifted their price objective on DICK’S Sporting Goods from $245.00 to $255.00 and gave the stock an “overweight” rating in a report on Tuesday, January 21st. Finally, Telsey Advisory Group reissued an “outperform” rating and issued a $260.00 target price on shares of DICK’S Sporting Goods in a report on Friday, March 7th. Nine research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $245.55.

DICK’S Sporting Goods Stock Down 4.3 %

Shares of NYSE DKS opened at $186.69 on Friday. The firm has a market cap of $15.21 billion, a P/E ratio of 13.34, a price-to-earnings-growth ratio of 2.47 and a beta of 1.53. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.56 and a current ratio of 1.72. DICK’S Sporting Goods has a 1 year low of $182.84 and a 1 year high of $254.60. The firm’s 50 day moving average price is $230.08 and its 200 day moving average price is $218.77.

DICK’S Sporting Goods (NYSE:DKS) last posted its quarterly earnings data on Tuesday, March 11th. The sporting goods retailer reported $3.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.47 by $0.15. The business had revenue of $3.89 billion for the quarter, compared to analysts’ expectations of $3.76 billion. DICK’S Sporting Goods had a return on equity of 42.00% and a net margin of 8.65%. The business’s revenue was up .5% on a year-over-year basis. During the same quarter last year, the firm earned $3.85 earnings per share. As a group, sell-side analysts anticipate that DICK’S Sporting Goods will post 13.89 earnings per share for the current year.

DICK’S Sporting Goods Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, April 11th. Shareholders of record on Friday, March 28th will be issued a $1.2125 dividend. This is a boost from DICK’S Sporting Goods’s previous quarterly dividend of $1.10. The ex-dividend date is Friday, March 28th. This represents a $4.85 annualized dividend and a yield of 2.60%. DICK’S Sporting Goods’s payout ratio is 31.45%.

Insider Activity

In other DICK’S Sporting Goods news, Chairman Edward W. Stack sold 160,600 shares of DICK’S Sporting Goods stock in a transaction on Monday, January 6th. The shares were sold at an average price of $229.25, for a total value of $36,817,550.00. Following the transaction, the chairman now owns 8,362,128 shares in the company, valued at $1,917,017,844. This trade represents a 1.88 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Julie Lodge-Jarrett sold 5,000 shares of the company’s stock in a transaction on Friday, January 17th. The stock was sold at an average price of $227.99, for a total value of $1,139,950.00. Following the sale, the executive vice president now owns 16,504 shares of the company’s stock, valued at approximately $3,762,746.96. The trade was a 23.25 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 172,933 shares of company stock valued at $39,655,456 in the last 90 days. 32.03% of the stock is currently owned by insiders.

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.