Nordstrom Inc. (JWN) Upgraded by Zacks Investment Research to Buy
Nordstrom Inc. (NYSE:JWN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Monday. The firm currently has a $66.00 price objective on the stock. Zacks Investment Research’s price objective points to a potential upside of 12.40% from the company’s current price.
According to Zacks, “Nordstrom posted solid results for third-quarter fiscal 2016, wherein the bottom line marked its second consecutive beat and the top line crushed estimates after four straight misses. While earnings were driven by strong sales, solid inventory alignment and operational efficiencies, the top line was fuelled by favorable shift of the company’s grand Anniversary Sale event. Further, gross margin expansion and SG&A expense leverage largely aided the quarterly performance. All these factors encouraged management to raise its fiscal 2016 earnings outlook, which in turned pushed estimates upward. Also, Nordstrom’s strong brand image, amendments to its operating model to generate cost savings, and constant store expansion efforts remain driving factors. However, stiff competition from other departmental retailers remains a threat for the company. Sluggishness in consumer traffic also poses a concern.”
JWN has been the subject of several other research reports. Cowen and Company reaffirmed an “outperform” rating and set a $55.00 price target on shares of Nordstrom in a report on Monday, August 29th. Vetr raised Nordstrom from a “hold” rating to a “buy” rating and set a $47.50 price target for the company in a report on Tuesday, July 26th. RBC Capital Markets reaffirmed a “sector perform” rating and set a $47.00 price target (up previously from $38.00) on shares of Nordstrom in a report on Monday, August 15th. Stifel Nicolaus set a $62.00 price target on Nordstrom and gave the company a “buy” rating in a report on Friday. Finally, Telsey Advisory Group raised their price target on Nordstrom from $40.00 to $53.00 and gave the company a “market perform” rating in a report on Friday, August 12th. Seven investment analysts have rated the stock with a sell rating, eighteen have assigned a hold rating and eight have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus price target of $49.16.
Shares of Nordstrom (NYSE:JWN) opened at 58.72 on Monday. The stock has a 50 day moving average of $52.93 and a 200 day moving average of $46.42. The company has a market cap of $10.18 billion, a price-to-earnings ratio of 25.02 and a beta of 1.02. Nordstrom has a 12-month low of $35.01 and a 12-month high of $59.37.
Nordstrom (NYSE:JWN) last announced its quarterly earnings results on Thursday, November 10th. The company reported $0.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.52 by $0.32. Nordstrom had a return on equity of 58.85% and a net margin of 2.28%. The business earned $3.47 billion during the quarter, compared to the consensus estimate of $3.49 billion. During the same quarter last year, the firm posted $0.57 EPS. The company’s quarterly revenue was up 7.2% on a year-over-year basis. On average, equities analysts expect that Nordstrom will post $2.73 earnings per share for the current fiscal year.
In other Nordstrom news, insider Daniel F. Little sold 5,270 shares of the business’s stock in a transaction that occurred on Friday, September 23rd. The stock was sold at an average price of $52.00, for a total value of $274,040.00. Following the transaction, the insider now directly owns 68,088 shares of the company’s stock, valued at $3,540,576. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Daniel F. Little sold 5,277 shares of the business’s stock in a transaction that occurred on Friday, October 7th. The shares were sold at an average price of $55.00, for a total value of $290,235.00. Following the completion of the transaction, the insider now directly owns 68,223 shares in the company, valued at $3,752,265. The disclosure for this sale can be found here. 7.03% of the stock is owned by company insiders.
A number of institutional investors have recently modified their holdings of the stock. Bank of Montreal Can acquired a new position in shares of Nordstrom during the second quarter valued at about $111,916,000. Skandinaviska Enskilda Banken AB publ raised its position in shares of Nordstrom by 20,761.0% in the third quarter. Skandinaviska Enskilda Banken AB publ now owns 2,731,326 shares of the company’s stock valued at $141,701,000 after buying an additional 2,718,233 shares during the period. Vanguard Group Inc. raised its position in shares of Nordstrom by 16.4% in the second quarter. Vanguard Group Inc. now owns 13,840,222 shares of the company’s stock valued at $526,621,000 after buying an additional 1,945,151 shares during the period. Smith Asset Management Group LP acquired a new position in shares of Nordstrom during the third quarter valued at about $62,974,000. Finally, Hotchkis & Wiley Capital Management LLC raised its position in shares of Nordstrom by 34.9% in the second quarter. Hotchkis & Wiley Capital Management LLC now owns 3,594,094 shares of the company’s stock valued at $136,755,000 after buying an additional 929,597 shares during the period. 66.50% of the stock is currently owned by hedge funds and other institutional investors.
Nordstrom Company Profile
Nordstrom, Inc is a fashion specialty retailer in the United States. The company operates through two segments: Retail and Credit. The Retail segment includes approximately 115 Nordstrom branded full-line stores in the United States and Nordstrom.com, approximately 167 off-price Nordstrom Rack stores, two Canada full-line stores, Nordstromrack.com and HauteLook, and other retail channels, including five Trunk Club showrooms and TrunkClub.com, its two Jeffrey boutiques and one clearance store that operates under the name Last Chance.
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