Credit Suisse Keeps Their Hold Rating on Dick’s Sporting Goods

By Jason Carr

In a report released today, Seth Sigman from Credit Suisse reiterated a Hold rating on Dick’s Sporting Goods (NYSE: DKS), with a price target of $55. The company’s shares opened today at $40.17, close to its 52-week high of $62.88.

Sigman noted:

“We hosted meetings with DKS management: We believe the company is doing some very positive things to transition its model, add new layers of differentiation, add new growth drivers, and leverage its power in the industry. That said, it’s difficult to see the stock working until, first, it clears the difficult 2H comparison hurdle, and second, like many other retailers, it provides better visibility on the investment outlook (which should be forthcoming) and EPS growth trajectory past 2017. Our key question looking to next year is whether the multiple margin drivers DKS has will be powerful enough to offset continued investments: Management appeared optimistic about the benefits from vendor restructuring, improving online economics by transitioning the platform in house, and recent cost reductions.”

According to TipRanks.com, Sigman is ranked 0 out of 5 stars with an average return of -4.2% and a 43.6% success rate. Sigman covers the Services sector, focusing on stocks such as Floor & Decor Holdings Inc, Camping World Holdings, and Cinemark Holdings Inc.

Dick’s Sporting Goods has an analyst consensus of Moderate Buy, with a price target consensus of $53.11.

Dick’s Sporting Goods’ market cap is currently $4.44B and has a P/E ratio of 15.51. The company has a book value ratio of 2.2642.

Based on the recent corporate insider activity of 34 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. Earlier this month, Jacqualyn Fouse, a Director at DKS bought 20,000 shares for a total of $542,600.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

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.