DICK’S Sporting Goods, Inc. (DKS) Becomes The Target of Investors’ Wrath

On November 29, 2019, DICK’S Sporting Goods, Inc. (NYSE:DKS) shares lost -0.17% or -0.08 points to close at $45.81 with a thin trading volume of 1.779 million shares. It opened the trading session at $45.57, the shares rose to $46.3462 and dropped to $45.15, the range by which the price of stock traded the whole day. The company now has a market cap of $4.23 billion and currently has 92.35 million outstanding shares. DICK’S Sporting Goods, Inc. (DKS) stock has accumulated 16.24 percent of market value in 21 trading days.

DKS stock’s trailing 3-year beta is 0.56, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $3.33 share in the trailing 52 weeks. The stock’s value surged 46.83 percent year to date (YTD) compared to a rise of 22.95 percent in 52 week’s period. The firm’s shares are still trading -4.14 percent below its 1-year high of $47.79 and 54.29 percent up from 52-week low of $29.69. The average consensus ranking on the company is 2.8, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

DICK’S Sporting Goods, Inc. (DKS) is most likely going to rise -13.32 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $60-month high price target. This represents a whopping 30.98 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $47.5, which means a return possibility of 3.69 percent in comparison with the closing price of the stock of $45.81 on November 29. The lowest price set for the stock is $42 — just above -8.32 percent from DKS share price now.

Past records have indicated that shares in DICK’S Sporting Goods, Inc. declined on 21 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of DKS’s Q4 earnings on March 11. Analysts are predicting revenue to climb 3 percent to $2.57B in the financial fourth quarter, while EPS will soar by about 12.15 percent to $1.2 per share. In the last quarter, it earnings of $1.26 per share came better than the $1.2194, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $2.49B, topping the $2.48B analysts had expected. Earnings are seen to rise by 7.5 percent this year, 4.35 percent in the coming year and the trend continues by 5 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at DICK’S Sporting Goods, Inc. (NYSE:DKS) and observe the pattern. The earliest insider trade happened on 09/24/2019. STONE LARRY D gathered a total of 0.41 thousand shares of the firm at average share price of $38.55. The total amount for the purchase was set at $15.61 thousand. On completing this exchange, the Director account balance was 128.26 thousand shares. The stock grew 18.83 percent from that insider purchase. On 08/22/2017, COLOMBO WILLIAM J, Director, did a purchase of 20 thousand shares at a price of $26.25 per share. This increased 525 thousand shares to the insider’s fortune and the stock experienced a 74.51 percent rally in price since the news became public. This exchange saw 334.02 thousand shares get into the Director account.

On 03/14/2017, Chairman and CEO, 10% Owner STACK EDWARD W recorded a sale transaction valued at $15.82 million. The sale at $47.47 a share has eliminated 333.34 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -3.5 percent decrease since the transaction reporting date. The company insider is left with 7.05 million shares remaining in the account. CHIRICO EMANUEL, who works as Director at the company, performed a sale of 20 thousand shares in a transaction worth $974.6 thousand. The disposal recorded on 03/10/2017 was priced at $48.73 per share. The stock price plunged -5.99 percent since the transaction. CHIRICO EMANUEL currently holds a stake of 99.17 thousand in DKS stock which is worth $4.54 million after the insider selling.

The stock is lingering around the initial support level of $45.19. After this, the following support is at the zone of $44.57. Up until the time the DKS stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 69.42 on the daily chart, and this may be a cause for concern. In case the price goes below $44.57 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $46.39 level may cause a pull-back move approaching $46.96 mark.

DICK’S Sporting Goods, Inc. (DKS) shares are trading at a P/E ratio of 12.8 times earnings posted in the trailing 12 months. The industry DKS deals with has an average P/E of 26.4. Its P/B ratio is standing at 2.4X compared to the 6 industry average. It is additionally sporting a 0.5 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.8. DICK’S Sporting Goods, Inc. has a 28.8% gross profit margin, with its operating margin around 5%. Alongside this, the company’s net profit margin currently stands at 3.6%.