Investment Firm Shows Confidence in DICK’S Sporting Goods Amidst Insider Sales

As we enter the second quarter of 2023, DICK’S Sporting Goods (NYSE:DKS) is a company that has been making headlines lately. Legato Capital Management LLC, a well-known investment management company, made an interesting move by purchasing 2,053 shares of DICK’S Sporting Goods during the fourth quarter. This bold initiative by Legato Capital Management LLC shows confidence in the sporting goods retailer and underscores its potential for growth.

Quarterly earnings data released March 7 by DICK’S Sporting Goods further supports this notion. The company reported earnings per share of $2.93 for the quarter, beating the consensus estimate of $2.86 by $0.07. Additionally, as a group, equities analysts are forecasting that DICK’s Sporting Goods is likely to report 13.5 earnings per share this year.

But it wasn’t just Legato Capital Management LLC’s investment in the sports retail giant that caused a stir; News of senior vice presidents selling shares also caught the attention of investors and analysts alike. On April 11 alone, SVP Julie Lodge-Jarrett sold 8,560 shares of DICK’S Sporting Goods while SVP John Edward Hayes III sold 6,592 shares for approximately $1.2 million or $909,696 over the past several months.

Interestingly, this selling could set off some alarm bells for those worried about market volatility; Other insiders have been buying shares recently, which could potentially signal increased confidence in DICK’S Sporting Goods rather than anything more worrisome.

With all of this current happenings surrounding this company, it’s clear that investors are watching its every move closely — a clear indication that sports wearables are a good investment choice despite potential challenges companies face in their operations.

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Bottom Line: If you are looking to invest in a growth sector with exceptional value creation opportunities in a fluid but lucrative market that is expanding daily, look no further than DICK’S Sporting Goods. Because Legato Capital Management LLC shows confidence in the retailer and insider buying stocks, it seems like a smart choice for those looking to rake in hefty dividends.

Investment management firms make significant changes to DICK’s sporting goods stock holdings in Q1 2023

According to recent reports, investment management firms made significant changes to their holdings of DICK’s Sporting Goods (DKS) stock in the first quarter of 2023. Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its stake in the company by 7.2%, while Great West Life Assurance Co. Can increased its stake by 14.5%. Yousif Capital Management LLC also increased its stake by 0.6%, while Sei Investments Co increased its stake by 20.3%. The Canada Pension Plan Investment Board increased its holdings in DKS stock by a staggering 34.4%. As a result, more than three quarters of all DICK’S Sporting Goods stock is owned by hedge funds and other institutional investors.

DKS opened at $142.56 on Wednesday morning, with updates showing a 50-day moving average price of $137.49 and a 200-day moving average of $124.26 per share, giving the company an upside ratio of 13.24 to $12.21 billion worth makes a beta rating of 1.44.

In April alone, SVPs Julie Lodge-Jarrett and John Edward Hayes III sold thousands of shares of DICK’s Sporting Goods, valued at over $1 million each, leading to insiders recently selling over 41% of the company’s stock in just three months million dollars sold.

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The company recently gave shareholders cause for celebration when it announced it would increase its quarterly dividend payment to $1 per share from $0.49 per share it paid last month.

While several equity analysts issued buy recommendations for the sports retailer, including TD Cowen, who gave them an Outperform rating after raising their price target on DKS to $175 per share from $166 per share; Citigroup restrained its enthusiasm as it felt it necessary to evaluate its performance before deciding whether buying shares of DICK’s Sporting Goods would be a wise move. Overall, Bloomberg rates DICK’s Sporting Goods as a “moderate buy” with an average price target of $156.61 per share.

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