“Early this year, we lowered our rating on Dick’s Sporting Goods to Perform from Outperform (Feb. 21st at $49.79) upon weakening trends in the sporting goods sector and ahead of more challenging comp comparisons for the chain. In our view, the Q3 (Oct.) results and preliminary FY18 (Jan. 2019) guidance the company reported this morning further bolster our cautious stance on the shares. Management seems poised to capitalize upon competitive dislocations in the sector over time. Nearer term, further online investments and deeper promotions across the broader space should push operating margins at DKS down into the mid-single digits, well below the prior peak of 9.0% reached in FY12. We see shares remaining under pressure into 2018 and advise clients to remain on the sidelines.”
According to TipRanks.com, Nagel is a 3-star analyst with an average return of 0.8% and a 51.8% success rate. Nagel covers the Services sector, focusing on stocks such as Restoration Hardware Holdings Inc, Lululemon Athletica Inc, and Advance Auto Parts.
Currently, the analyst consensus on Dick’s Sporting Goods is Hold and the average price target is $28.53, representing a 14.6% upside.
In a report issued on November 1, Cowen & Co. also reiterated a Hold rating on the stock with a $28 price target.
The company has a one-year high of $62.80 and a one-year low of $23.88. Currently, Dick’s Sporting Goods has an average volume of 3.4M.
Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DKS in relation to earlier this year.
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Dick’s Sporting Goods, Inc. engages in the retail of extensive assortment of authentic sports equipment, apparel, footwear, and accessories through a blend of associates, in-store services, and unique specialty shop-in-shops. The company was founded by Richard T. Stack in 1948 and is headquartered in Coraopolis, PA.