DSW Inc. (DSW) Trading 7.9% Higher After Better-Than-Expected Earnings
DSW Inc. (NYSE:DSW) shares traded up 7.9% on Tuesday following a stronger than expected earnings report. The company traded as high as $25.70 and last traded at $24.90, with a volume of 6,169,813 shares changing hands. The stock had previously closed at $23.07.
The company reported $0.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.48 by $0.03. DSW had a net margin of 3.96% and a return on equity of 12.51%. The company earned $697 million during the quarter, compared to analyst estimates of $710.42 million. During the same quarter in the prior year, the business earned $0.44 earnings per share. The business’s quarterly revenue was up 4.7% compared to the same quarter last year.
The company also recently declared a quarterly dividend, which will be paid on Friday, December 30th. Investors of record on Friday, December 16th will be issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 3.20%. The ex-dividend date is Wednesday, December 14th. DSW’s payout ratio is 64.52%.
DSW has been the subject of a number of recent analyst reports. Zacks Investment Research raised shares of DSW from a “hold” rating to a “buy” rating and set a $26.00 price target for the company in a report on Tuesday, August 2nd. Standpoint Research initiated coverage on shares of DSW in a report on Friday, November 4th. They set a “buy” rating and a $28.00 price target for the company. Canaccord Genuity reaffirmed a “hold” rating and set a $23.00 price target (up from $19.00) on shares of DSW in a report on Monday, August 29th. They noted that the move was a valuation call. Credit Suisse Group AG reaffirmed a “hold” rating and set a $23.00 price target on shares of DSW in a report on Wednesday, August 31st. Finally, Telsey Advisory Group lowered their price target on shares of DSW from $27.00 to $25.00 and set a “market perform” rating for the company in a report on Wednesday, August 31st. Three equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating, five have issued a buy rating and two have assigned a strong buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of $24.52.
In other DSW news, EVP William L. Jordan sold 42,423 shares of the firm’s stock in a transaction dated Wednesday, September 7th. The shares were sold at an average price of $25.00, for a total transaction of $1,060,575.00. Following the transaction, the executive vice president now owns 72,333 shares of the company’s stock, valued at approximately $1,808,325. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Harvey L. Sonnenberg sold 8,000 shares of the firm’s stock in a transaction dated Thursday, September 1st. The shares were sold at an average price of $23.50, for a total transaction of $188,000.00. Following the transaction, 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. Company insiders own 20.30% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the stock. Adage Capital Partners GP L.L.C. bought a new position in DSW during the third quarter valued at approximately $40,960,000. BlackRock Fund Advisors boosted its position in shares of DSW by 143.4% in the second quarter. BlackRock Fund Advisors now owns 1,647,457 shares of the company’s stock valued at $34,893,000 after buying an additional 970,513 shares in the last quarter. Point72 Asset Management L.P. boosted its position in shares of DSW by 1,165.2% in the second quarter. Point72 Asset Management L.P. now owns 846,400 shares of the company’s stock valued at $17,927,000 after buying an additional 779,500 shares in the last quarter. Morgan Stanley boosted its position in shares of DSW by 970.8% in the third quarter. Morgan Stanley now owns 762,555 shares of the company’s stock valued at $15,617,000 after buying an additional 691,340 shares in the last quarter. Finally, Citigroup Inc. boosted its position in shares of DSW by 856.5% in the second quarter. Citigroup Inc. now owns 753,222 shares of the company’s stock valued at $15,954,000 after buying an additional 674,476 shares in the last quarter. 82.29% of the stock is currently owned by hedge funds and other institutional investors.
The stock has a 50-day moving average of $21.69 and a 200 day moving average of $22.34. The firm has a market cap of $2.06 billion, a P/E ratio of 19.95 and a beta of 0.72.
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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