DSW Inc. (DSW) Shares Gap Up Following Better-Than-Expected Earnings
Shares of DSW Inc. (NYSE:DSW) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $26.10, but opened at $24.90. DSW shares last traded at $24.99, with a volume of 1,138,423 shares traded.
The company reported $0.51 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.48 by $0.03. The business had revenue of $697 million for the quarter, compared to analyst estimates of $710.42 million. DSW had a return on equity of 12.51% and a net margin of 3.96%. DSW’s quarterly revenue was up 4.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.44 EPS.
The business also recently declared a quarterly dividend, which will be paid on Friday, December 30th. Investors of record on Friday, December 16th will be paid a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 3.21%. The ex-dividend date of this dividend is Wednesday, December 14th. DSW’s dividend payout ratio is 64.52%.
Several brokerages recently commented on DSW. Zacks Investment Research raised DSW from a “hold” rating to a “buy” rating and set a $23.00 price target on the stock in a research note on Tuesday, October 4th. Credit Suisse Group AG reaffirmed a “hold” rating and issued a $23.00 price target on shares of DSW in a research note on Wednesday, August 31st. B. Riley reaffirmed a “neutral” rating and issued a $26.00 price target on shares of DSW in a research note on Wednesday. Canaccord Genuity reissued a “hold” rating and issued a $23.00 price objective on shares of DSW in a research note on Wednesday, September 7th. Finally, Telsey Advisory Group boosted their price objective on DSW from $23.00 to $27.00 and gave the stock a “market perform” rating in a research note on Thursday, August 25th. Three equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating, five have given a buy rating and two have assigned a strong buy rating to the stock. DSW has a consensus rating of “Hold” and a consensus price target of $24.52.
In other news, EVP William L. Jordan sold 42,423 shares of the firm’s stock in a transaction dated Wednesday, September 7th. The stock was sold at an average price of $25.00, for a total transaction of $1,060,575.00. Following the sale, the executive vice president now owns 72,333 shares of the company’s stock, valued at $1,808,325. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Harvey L. Sonnenberg sold 8,000 shares of the firm’s stock in a transaction dated Thursday, September 1st. The stock was sold at an average price of $23.50, for a total value of $188,000.00. Following the sale, the director now directly owns 20,142 shares in the company, valued at approximately $473,337. The disclosure for this sale can be found here. Insiders own 20.30% of the company’s stock.
Several large investors have recently added to or reduced their stakes in DSW. Americafirst Capital Management LLC purchased a new position in DSW during the second quarter worth about $107,000. NEXT Financial Group Inc purchased a new position in DSW during the third quarter worth about $123,000. MSI Financial Services Inc increased its position in DSW by 2.9% in the third quarter. MSI Financial Services Inc now owns 6,703 shares of the company’s stock worth $137,000 after buying an additional 190 shares during the last quarter. PNC Financial Services Group Inc. increased its position in DSW by 100.0% in the third quarter. PNC Financial Services Group Inc. now owns 7,200 shares of the company’s stock worth $147,000 after buying an additional 3,600 shares during the last quarter. Finally, Pacad Investment Ltd. purchased a new position in DSW during the second quarter worth about $159,000. 82.29% of the stock is currently owned by institutional investors.
The stock has a market capitalization of $2.06 billion, a price-to-earnings ratio of 19.98 and a beta of 0.72. The stock has a 50-day moving average price of $21.57 and a 200-day moving average price of $22.32.
DSW Inc is a footwear retailer. The Company offers assortment of shoes, handbags and accessories for women, men and children. The Company operates through two segments: the DSW segment and the Affiliated Business Group (ABG) segment. The DSW segment includes DSW stores and dsw.com. The Company, through its ABG segment, partners with approximately three other retailers to help build and optimize their footwear businesses.
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