Zacks Investment Research upgraded shares of Nordstrom (NYSE:JWN) from a hold rating to a buy rating in a research report released on Friday. Zacks Investment Research currently has $57.00 price target on the specialty retailer’s stock.
According to Zacks, “Nordstrom outpaced the industry in the past year backed by a robust surprise history, courtesy of smooth execution of its customer strategy. Earnings surpassed estimates in nine of the last 10 quarters, while it delivered positive sales surprise in five of the last six quarters. Results gained from higher sales, lower tax rate, comps growth and solid execution across both full-price and off-price businesses. Its focus on store expansion, loyalty program and investments in digital growth remain noteworthy. Despite an otherwise strong third-quarter fiscal 2018, the company’s credit-card interest-related error has hurt investor sentiments. The company estimates to refund less than 4% of its cardholders amounts less than $100. Further, higher cost of investments for occupancy, technology, supply chain and marketing initiatives are denting margins. Higher SG&A expense may also weigh on profitability.”
A number of other analysts also recently issued reports on the stock. Goldman Sachs Group reiterated a sell rating on shares of Nordstrom in a report on Tuesday, September 4th. Telsey Advisory Group lifted their price objective on shares of Nordstrom from $65.00 to $72.00 and gave the company an outperform rating in a report on Monday, September 10th. Morgan Stanley lifted their price objective on shares of Nordstrom from $47.00 to $50.00 and gave the company an underweight rating in a report on Monday, September 17th. ValuEngine upgraded shares of Nordstrom from a hold rating to a buy rating in a report on Thursday, October 11th. Finally, Deutsche Bank lifted their price objective on shares of Nordstrom from $56.00 to $61.00 and gave the company a buy rating in a report on Friday, August 17th. One equities research analyst has rated the stock with a sell rating, fourteen have given a hold rating and seven have assigned a buy rating to the stock. The company has a consensus rating of Hold and an average price target of $57.71.
Shares of NYSE JWN traded down $1.33 during midday trading on Friday, reaching $49.36. The company’s stock had a trading volume of 2,757,036 shares, compared to its average volume of 3,375,204. The company has a quick ratio of 0.44, a current ratio of 1.12 and a debt-to-equity ratio of 2.23. Nordstrom has a fifty-two week low of $44.68 and a fifty-two week high of $67.75. The company has a market capitalization of $8.54 billion, a PE ratio of 16.68, a price-to-earnings-growth ratio of 2.35 and a beta of 0.54.
Nordstrom (NYSE:JWN) last posted its quarterly earnings data on Thursday, November 15th. The specialty retailer reported $0.67 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.64 by $0.03. Nordstrom had a net margin of 2.92% and a return on equity of 51.66%. The company had revenue of $3.75 billion for the quarter, compared to the consensus estimate of $3.68 billion. As a group, sell-side analysts expect that Nordstrom will post 3.6 EPS for the current year.
The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 11th. Investors of record on Monday, November 26th will be issued a dividend of $0.37 per share. The ex-dividend date is Friday, November 23rd. This represents a $1.48 dividend on an annualized basis and a yield of 3.00%. Nordstrom’s payout ratio is 50.00%.
Nordstrom declared that its Board of Directors has authorized a share buyback program on Wednesday, August 22nd that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the specialty retailer to repurchase up to 14.4% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its shares are undervalued.
In related news, insider Blake W. Nordstrom sold 127,251 shares of the business’s stock in a transaction on Thursday, September 20th. The shares were sold at an average price of $61.51, for a total transaction of $7,827,209.01. Following the transaction, the insider now directly owns 2,519,436 shares in the company, valued at $154,970,508.36. The sale was disclosed in a filing with the SEC, which is available through this link. Also, VP Robert Sari sold 53,024 shares of the business’s stock in a transaction on Monday, September 10th. The stock was sold at an average price of $65.72, for a total transaction of $3,484,737.28. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 200,604 shares of company stock worth $12,621,378. 7.05% of the stock is owned by corporate insiders.
A number of institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. boosted its position in Nordstrom by 10.5% during the third quarter. BlackRock Inc. now owns 9,865,556 shares of the specialty retailer’s stock worth $590,062,000 after purchasing an additional 933,720 shares during the period. United Services Automobile Association boosted its position in Nordstrom by 1,958.0% during the second quarter. United Services Automobile Association now owns 889,797 shares of the specialty retailer’s stock worth $46,074,000 after purchasing an additional 846,560 shares during the period. TIAA CREF Investment Management LLC boosted its position in Nordstrom by 92.5% during the third quarter. TIAA CREF Investment Management LLC now owns 1,358,979 shares of the specialty retailer’s stock worth $81,281,000 after purchasing an additional 653,173 shares during the period. Millennium Management LLC boosted its position in Nordstrom by 199.1% during the second quarter. Millennium Management LLC now owns 945,422 shares of the specialty retailer’s stock worth $48,954,000 after purchasing an additional 629,307 shares during the period. Finally, Smith Asset Management Group LP boosted its position in Nordstrom by 3,553.2% during the third quarter. Smith Asset Management Group LP now owns 544,330 shares of the specialty retailer’s stock worth $32,588,000 after purchasing an additional 529,430 shares during the period. Institutional investors and hedge funds own 60.44% of the company’s stock.
Nordstrom, Inc, a fashion retailer, provides apparel, shoes, cosmetics, and accessories for women, men, young adults, and children in the United States and Canada. The company operates in two segments, Retail and Credit. The Retail segment offers a range of brand name and private label merchandise through various channels, including Nordstrom branded full-line stores and online store at Nordstrom.com; Nordstrom Rack stores; Nordstromrack.com and HauteLook; Trunk Club clubhouses and TrunkClub.com; Jeffrey boutiques; and clearance stores that operate under the Last Chance name.
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