Geode Capital Management LLC recently disclosed their increased position in Dick’s Sporting Goods, Inc. According to the Securities & Exchange Commission filing, Geode Capital owned 881,663 shares of the sporting goods retailer’s stock after purchasing an additional 6,374 shares during the fourth quarter. The total worth of their position was $106,366,000. The news comes after a series of insider sales from Director Mark J. Barrenechea and CEO Lauren R. Hobart.
In particular, Director Barrenechea sold 9,085 shares on May 25th for an average price of $123.54 each, amounting to a total transaction value of $1,122,360.90. Following the sale, Barrenechea now owns 2,816 shares valued at approximately $347,888.64.
Meanwhile CEO Hobart made some significant sales earlier this year when she sold 83,,392 shares on March 13th for an average price of $145.21 per share amounting to a total transaction value of $12,109,352.32. Hobart’s remaining stake in DICK’S Sporting Goods amounts to 233,269 shares valued at $33,872991.49.
Since the last two weeks alone insiders have sold 294467 shares with a total value over $42 million bringing company insiders ownership down to only around 30 percent.
Shares of NYSE:DKS were trading at $134.98 on Friday marking a particularly weak performance given that it stood as high as €152 six months ago.. Given their turbulent recent performance in terms of management changes and personnel downsizing during COVID the current scenario is not very favorable for manufacturers in this space either.
These developments mark uncertain times for Dick’s Sporting Goods and investors are advised caution while investing in any such stocks presently until we can see more stability and transparency within executive ranks contributed by long term vision and strategy.
DICK’S Sporting Goods, Inc.
DKS
Strong Buy
Updated on: 09/06/2023
DICK’S Sporting Goods Continues to Perform Strongly Despite Investor Shake-Ups
DICK’S Sporting Goods has been making waves in the investment world, with significant raises and reductions in stakes from institutional investors. Balyasny Asset Management LLC raised its holdings in DICK’S by over 6,000% in Q3 of last year, now owning 1,244,493 shares of the sporting goods retailer’s stock worth $130,224,000 after purchasing an additional 1,226,735 shares. Jefferies Financial Group gave the company a “hold” rating and a $155.00 target price on the stock while Morgan Stanley awarded DICK’S an “overweight” rating and upped their target price to $175.00. CEO Lauren R. Hobart also sold 83,392 shares of DICK’S Sporting Goods for just over $12 million in March of this year.
However, it seems that despite changes in ownership and transactions by insiders such as Hobart and Director Mark J. Barrenechea who recently sold shares at an average price of $123.54 each, DICK’S is continuing to perform strongly financially wise. In Q1 of 2023 they reported earnings per share for Q1 that beat estimates by a significant $.18 which follows on from a strong financial performance last year with revenue going up 5.3% YoY; so expectations are high for continued success for investors moving forward into next quarter.
Of interest to shareholders is the recent announcement that DICK’s is paying out another quarterly dividend: shareholders will receive one dollar per share on June 30th if they were recorded on record on Friday June 16th thereby maintaining the payout ratio at roughly around a third.
All told then it appears as if DICK’s is continuing its high flying ways even after shuffling around some investor ownership and transactions by insiders while still maintaining their impressive repayment percentage to shareholders!