Wesbanco Bank Inc. Makes Bold Investment in DICK’S Sporting Goods Inc. Amid Strong Quarterly Performance
Wesbanco Bank Inc. made a bold move in the financial world by purchasing 5,700 shares of DICK’S Sporting Goods, Inc. (NYSE:DKS) during the previous quarter. According to recent filings with the Securities and Exchange Commission (SEC), this new holding represents a massive $686,000 investment by the Ohio-based bank.
The move follows the release of DICK’S Sporting Goods’ earnings report on March 7, which revealed impressive earnings per share of $2.93 for the quarter — beating industry analyst forecasts by seven cents a share. The company’s revenue for the quarter also exceeded expectations, reaching $3.60 billion compared to an estimated $3.45 billion.
The company’s strong quarterly performance resulted in a return on equity of nearly 46% and a net margin of 8.43%, with revenue increasing 7.3% compared to the prior-year period, when the company reported earnings per share of $3.64 reported.
While Wesbanco Bank’s decision to invest in DICK’S Sporting Goods is certainly notable, it’s worth noting that company insiders have recently sold significant stakes of their own; CEO Lauren R. Hobart sold over 83,000 shares for over $12 million, while Chairman Edward W. Stack sold over 159,000 shares for more than $23 million.
All in all, DICK’S Sporting Goods appears to have weathered the challenges of pandemic-related closures and restrictions well, and is poised for continued success, as evidenced by Wesbanco Bank’s pivotal investment in the company’s shares — a promising move in the volatile arena of business investment — although insiders seem to be hedging their bets somewhat. Overall, however, analysts remain confident that DICK’S Sporting Goods will deliver robust earnings per share throughout the fiscal year despite the challenging environment in many industries due to COVID-related economic disruption and headwinds.
Hedge funds and institutional investors are increasing positions in DICK’S Sporting Goods
DICK’S Sporting Goods has become a popular investment among hedge funds and institutional investors, leading them to increase their positions in the sporting goods retailer. Comerica Bank increased its holding by 52.4% in the third quarter, followed by Bridgewater Associates LP with a 21.1% increase in its holdings in the second quarter. Truist Financial Corp also significantly increased its position by 46.6% in the third quarter, while Fragasso Group Inc bought about $294,000 worth of new shares in the second quarter. In addition to these increases, Eqis Capital Management Inc added a modest 5.3% increase in the most recent quarter. These hedge funds and institutional investors now own an impressive 75.08% of shares in DICK’S Sporting Goods.
DICK’S Sporting Goods showed growth for the sportswear retailer as it opened Monday at $138.42, increasing its market cap to $10.96 billion with a price-to-earnings ratio of 12.85 and a beta of 1.41. The average price of the stock over the last 50 days has been $133.78, while over the last two hundred days it has been $120.92 – showing notable improvements in both periods.
In addition, CEO Lauren R. Hobart recently sold over 80,000 shares for a recorded value of over $12 million in connection with transactions that took place on March 13, according to filings with the SEC. According to disclosure documents filed with this information on the SEC’s website, both Lauren R. Hobart and Chairman Edward W. Stack have sold sizable stock totaling millions of dollars combined, while company insiders account for about a third of the ownership.
In light of these developments, several brokerage firms commented on the performance of DICK’S Sporting Goods; Barclays raised its price target to $174 from $139, along with TD Cowen, which raised its price target from $166 to $175 per share, which strongly supported DICK’s optimism for the upside with a total of 14 buy ratings out of 24 made. Nonetheless, with all this bullishness, optimism has been offset by some analysts like Stifel Nicolaus, who believes the stock could benefit from moderate moderation at $157.
DICK’S Sporting Goods recently announced a quarterly dividend that will be paid on March 31st to shareholders of record on March 17th. DICK’S Sporting Goods increased its quarterly dividend to $1.00 per share from the previous dividend payout of $0.49 — an annual dividend of $4.00 and a yield of 2.89%. The current payout ratios remain conservative at around 37.14%.
In summary, DICK’S Sporting Goods has demonstrated significant growth with encouraging numbers and increases in hedge fund investments and institutional investor positions in the company as confidence grows both internally and externally in the company’s viability for years to come . Still, cautious investors should gauge their optimism considering that the highest recommended prices have not yet surpassed $175, while the average valuation trends remain mildly positive with a Moderate Buy rating at best.