Zacks Investment Research upgraded shares of Nordstrom (NYSE:JWN) from a hold rating to a buy rating in a research report released on Tuesday. The brokerage currently has $55.00 price objective on the specialty retailer’s stock.
According to Zacks, “Nordstrom outperformed the industry in the past six months driven by the smooth execution of customer strategy along with disciplined inventory and expense management. Also, the company seems to be enhancing market share via persistent store expansion and strengthening capabilities through further investments, particularly in digital growth. Moreover, it has been gaining from comps growth, solid sales at Nordstrom Rack and sturdy e-commerce business. Also, the company’s decision to turn down the Nordstrom family’s buyout offer to safeguard the interest of shareholders has been aiding stock. However, investments toward occupancy, technology, supply chain and marketing expenses are weighing upon its margin performance. Also, it lagged earnings estimate in the last quarter after six straight quarters of earnings beat. Nevertheless, estimates have been largely stable ahead of first-quarter fiscal 2018 earnings release.”
Several other equities analysts also recently issued reports on JWN. William Blair downgraded shares of Nordstrom from an outperform rating to a market perform rating in a research note on Tuesday, January 23rd. Piper Jaffray set a $48.00 price target on shares of Nordstrom and gave the company a hold rating in a research note on Thursday, March 1st. Robert W. Baird set a $53.00 price target on shares of Nordstrom and gave the company a hold rating in a research note on Thursday, March 1st. Royal Bank of Canada set a $49.00 price target on shares of Nordstrom and gave the company a hold rating in a research note on Friday, March 2nd. Finally, BMO Capital Markets raised their price target on shares of Nordstrom from $50.00 to $55.00 and gave the company a market perform rating in a research note on Monday, March 5th. Three equities research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and four have given a buy rating to the stock. Nordstrom currently has a consensus rating of Hold and a consensus target price of $48.32.
Nordstrom (NYSE:JWN) last issued its quarterly earnings data on Thursday, March 1st. The specialty retailer reported $1.20 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $1.24 by ($0.04). The company had revenue of $4.60 billion during the quarter, compared to the consensus estimate of $4.57 billion. Nordstrom had a net margin of 2.86% and a return on equity of 60.72%. Nordstrom’s revenue for the quarter was up 8.4% on a year-over-year basis. During the same period in the previous year, the company earned $1.27 EPS. research analysts forecast that Nordstrom will post 3.42 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 4th. Stockholders of record on Friday, May 18th will be given a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a dividend yield of 2.97%. The ex-dividend date is Thursday, May 17th. Nordstrom’s dividend payout ratio (DPR) is presently 50.00%.
In other news, insider Ken Worzel sold 13,703 shares of the stock in a transaction on Wednesday, April 11th. The shares were sold at an average price of $48.97, for a total transaction of $671,035.91. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CMO Scott A. Meden sold 10,000 shares of the stock in a transaction on Thursday, April 12th. The stock was sold at an average price of $49.02, for a total transaction of $490,200.00. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 36,428 shares of company stock valued at $1,793,068. 7.05% of the stock is currently owned by corporate insiders.
A number of large investors have recently bought and sold shares of the business. Bank of New York Mellon Corp grew its holdings in Nordstrom by 11.8% in the fourth quarter. Bank of New York Mellon Corp now owns 10,245,078 shares of the specialty retailer’s stock worth $485,413,000 after purchasing an additional 1,078,880 shares during the period. BlackRock Inc. grew its holdings in Nordstrom by 3.4% in the fourth quarter. BlackRock Inc. now owns 8,343,411 shares of the specialty retailer’s stock worth $395,312,000 after purchasing an additional 275,344 shares during the period. Disciplined Growth Investors Inc. MN grew its holdings in Nordstrom by 60.6% in the fourth quarter. Disciplined Growth Investors Inc. MN now owns 1,428,767 shares of the specialty retailer’s stock worth $67,695,000 after purchasing an additional 539,040 shares during the period. Geode Capital Management LLC grew its holdings in Nordstrom by 4.1% in the fourth quarter. Geode Capital Management LLC now owns 1,402,334 shares of the specialty retailer’s stock worth $66,320,000 after purchasing an additional 55,820 shares during the period. Finally, Ariel Investments LLC grew its holdings in Nordstrom by 9.2% in the fourth quarter. Ariel Investments LLC now owns 1,303,102 shares of the specialty retailer’s stock worth $61,741,000 after purchasing an additional 109,753 shares during the period. Institutional investors and hedge funds own 59.26% of the company’s stock.
Nordstrom Company Profile
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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