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

DICK’S Sporting Goods (NYSE:DKS) declared that its Board of Directors has initiated a stock repurchase program on Tuesday, March 11th, RTT News reports. The company plans to repurchase $3.00 billion in shares. This repurchase authorization permits the sporting goods retailer to repurchase up to 18.5% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on DKS shares. Telsey Advisory Group restated an “outperform” rating and set a $260.00 target price on shares of DICK’S Sporting Goods in a research report on Friday, March 7th. Guggenheim restated a “neutral” rating on shares of DICK’S Sporting Goods in a research note on Wednesday. TD Cowen lifted their price target on DICK’S Sporting Goods from $270.00 to $294.00 and gave the company a “buy” rating in a research report on Wednesday, January 8th. Robert W. Baird lowered their price objective on DICK’S Sporting Goods from $235.00 to $230.00 and set a “neutral” rating on the stock in a research report on Wednesday. Finally, Argus raised their price objective on shares of DICK’S Sporting Goods from $255.00 to $280.00 and gave the stock a “buy” rating in a research note on Wednesday, January 29th. Nine analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $245.55.

DICK’S Sporting Goods Price Performance

DICK’S Sporting Goods stock opened at $186.69 on Friday. The company has a quick ratio of 0.56, a current ratio of 1.72 and a debt-to-equity ratio of 0.48. DICK’S Sporting Goods has a 52-week low of $182.84 and a 52-week high of $254.60. The firm has a market cap of $15.21 billion, a PE ratio of 13.34, a price-to-earnings-growth ratio of 2.47 and a beta of 1.53. The company’s 50 day moving average is $230.08 and its two-hundred day moving average 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 for the quarter, topping analysts’ consensus estimates of $3.47 by $0.15. The business had revenue of $3.89 billion for the quarter, compared to analyst estimates of $3.76 billion. DICK’S Sporting Goods had a return on equity of 42.00% and a net margin of 8.65%. The company’s revenue was up .5% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.85 earnings per share. On average, research analysts expect that DICK’S Sporting Goods will post 13.89 EPS for the current fiscal year.

DICK’S Sporting Goods Increases Dividend

The company 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 dividend of $1.2125 per share. This represents a $4.85 annualized dividend and a yield of 2.60%. The ex-dividend date of this dividend is Friday, March 28th. This is a boost from DICK’S Sporting Goods’s previous quarterly dividend of $1.10. DICK’S Sporting Goods’s payout ratio is 31.45%.

Insider Buying and Selling at DICK’S Sporting Goods

In other DICK’S Sporting Goods news, EVP Julie Lodge-Jarrett sold 5,000 shares of the company’s stock in a transaction on Friday, January 17th. The shares were sold at an average price of $227.99, for a total value of $1,139,950.00. Following the completion of the transaction, the executive vice president now owns 16,504 shares in the company, valued at $3,762,746.96. This represents a 23.25 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Chairman Edward W. Stack sold 160,600 shares of the business’s stock in a transaction dated 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 completion of the sale, the chairman now directly owns 8,362,128 shares of the company’s stock, valued at $1,917,017,844. The trade was a 1.88 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 172,933 shares of company stock valued at $39,655,456. Insiders own 32.03% of the company’s stock.

About DICK’S Sporting Goods

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.