Hibbett Sports: A Promising Investment Opportunity in the Sporting Goods Retail Sector
Hibbett Sports, Inc. (NASDAQ: HIBB) is currently a $590.07 million company that opened on May 24, 2023 at $46.28. The sporting goods retailer has been in business since 1945 and has since grown into a well-known brand with over 1,000 locations across the United States. Hibbett has a price-to-earnings ratio of 4.82 and a PEG ratio of 0.38, making it an attractive investment opportunity for many.
Despite his successes, Hibbett has seen some ups and downs in the stock market lately. Its 12-month high was $75.38 while its low was $39.58; Currently, however, the average price of the shares over the last fifty days is $56.43 and the average price over the last two hundred days is $63.54.
A number of equity research analysts have also recently commented on Hibbett, providing insights into the company’s future valuation; Jefferies Financial Group gave the company a “Hold” rating with a $69 price target in March of this year after reporting its stock reports, while Robert W. Baird gave the company a “Outperform” rating and its $75 price target to $80 in early March based on impressive company revenue data.
Another Telsey Advisory Group analyst reiterated his optimistic outlook on Hibbett, giving an “outperform” rating, targeting a share price of $80 within about 12 months; Bank of America upgraded from buy to buy status on Tuesday with its rating change that had raised its climbable limits from a goal of just meeting the smaller fiscal appreciation targets to one of substantial confidence into reaching much greater heights near these thresholds are tougher benchmarks, all of which must be surpassed.
In related news and other updates on insider trading behavior, Director James A. Hilt sold 8,154 shares of the company, accounting for about 2.98% of the total shareholding, while Terrance G. Finley also lost a significant portion of the company’s value through the sale of 5,605 shares itself; each at relatively high price levels compared to recent trading norms as regulatory guidelines have been tightened in response to stricter disclosures and calls for greater public transparency regarding executive compensation.
Fourth quarter financial results released in March delivered earnings just below previously forecast; However, Hibbett’s overall sales rose well over a year earlier and met most expectations. This has greatly helped sustain these competitive efforts well into the future by keeping the company ahead of the competition through data-driven business decisions based on new AI models leveraging machine learning algorithms. In fact, we continuously learn and adapt over time , based on changes in market conditions or other external factors.
Institutional investors are showing interest in Hibbett Inc despite the decline in first-quarter earnings forecasts
Institutional investors are keeping a close eye on Hibbett Incorporated (NASDAQ:HIBB) as the company recently reported a decline in earnings per share estimates for the first quarter of 2024. In a research report published on May 22, M. Kummetz, an analyst at Seaport Res Ptn, stated that Hibbett is expected to report earnings of $3.00 per share for the quarter, down from the previous estimate of $3.15. dollar lies.
Despite this drop in expected earnings, institutional investors have made significant changes to their positions in the business. Fisher Asset Management LLC increased its stake in Hibbett by an impressive 816.2% in the fourth quarter of 2023 and now owns 266,691 shares of the company valued at $18,194,000 after purchasing an additional 237,583 shares during the period.
Goldman Sachs Group Inc. also increased its stake in Hibbett by 137.6% in the second quarter of 2024 and now owns 269,967 shares of the company, valued at $11,800,000, after purchasing an additional 156,334 shares during the period.
Chimera Capital Management LLC initiated a new position in Hibbett stock valued at approximately $10,215,000 during the fourth quarter of 2023.
Arrowstreet Capital Limited Partnership increased its stake in Hibbett stock by over 100% in the first quarter of 2024 and now owns over 255,563 shares worth $15,073,000
Finally, Stormborn Capital Management LLC acquired an over $8 million new interest in Hibbett during the fourth quarter.
Overall, hedge funds and other institutional investors own nearly all (97.94%) of the company’s stock, underscoring their interest in HIBB.
Seaport Res Ptn also released estimates for Hibbett’s Q2 and Q4 earnings for fiscal 2024 of $1.39 and $3.34 EPS, respectively. Their full year earnings estimate for fiscal 2024 is $9.22 per share, for fiscal 2025 $10.46 per share and for fiscal 2026 $11.43 per share.
Consensus estimate for Hibbett’s current full-year earnings remains steady at $9.61 per share despite the decline in estimates for the first quarter of 2024.
Institutions appear to have confidence in Hibbett’s future growth potential given their increased investments in the company, despite recent declines in expected earnings per share for the first quarter of 2024 and beyond. It will be interesting to see how these shifts in institutional investors translate to the value of HIBB stock over time.