Nordstrom (JWN) Upgraded by Zacks Investment Research to Buy

Zacks Investment Research upgraded shares of Nordstrom (NYSE:JWN) from a hold rating to a buy rating in a report released on Friday. The brokerage currently has $57.00 price objective on the specialty retailer’s stock.

According to Zacks, “Nordstrom outpaced the industry in the past year backed by a robust surprise history, courtesy of smooth execution of its customer strategy. Earnings surpassed estimates in nine of the last 10 quarters, while it delivered positive sales surprise in five of the last six quarters. Results gained from higher sales, lower tax rate, comps growth and solid execution across both full-price and off-price businesses. Its focus on store expansion, loyalty program and investments in digital growth remain noteworthy. Despite an otherwise strong third-quarter fiscal 2018, the company’s credit-card interest-related error has hurt investor sentiments. The company estimates to refund less than 4% of its cardholders amounts less than $100. Further, higher cost of investments for occupancy, technology, supply chain and marketing initiatives are denting margins. Higher SG&A expense may also weigh on profitability.”

Other equities research analysts have also recently issued research reports about the stock. Wedbush initiated coverage on shares of Nordstrom in a research report on Wednesday, October 31st. They set a $59.00 price objective for the company. ValuEngine raised shares of Nordstrom from a hold rating to a buy rating in a research report on Monday, August 20th. UBS Group upped their price objective on shares of Nordstrom from $69.00 to $73.00 and gave the stock a buy rating in a research report on Friday, August 17th. Deutsche Bank upped their price objective on shares of Nordstrom from $56.00 to $61.00 and gave the stock a buy rating in a research report on Friday, August 17th. Finally, Goldman Sachs Group initiated coverage on shares of Nordstrom in a research report on Monday, September 3rd. They set a buy rating and a $73.00 price objective for the company. One research analyst has rated the stock with a sell rating, fourteen have assigned a hold rating and seven have issued a buy rating to the company’s stock. The company presently has an average rating of Hold and an average price target of $57.71.

JWN traded down $1.33 on Friday, hitting $49.36. 2,757,036 shares of the stock were exchanged, compared to its average volume of 3,375,204. Nordstrom has a 12 month low of $44.68 and a 12 month high of $67.75. The company has a quick ratio of 0.44, a current ratio of 1.12 and a debt-to-equity ratio of 2.23. The stock has a market capitalization of $8.54 billion, a price-to-earnings ratio of 16.68, a P/E/G ratio of 2.35 and a beta of 0.54.

Nordstrom (NYSE:JWN) last posted its quarterly earnings data on Thursday, November 15th. The specialty retailer reported $0.67 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.64 by $0.03. Nordstrom had a net margin of 2.92% and a return on equity of 51.66%. The business had revenue of $3.75 billion during the quarter, compared to analysts’ expectations of $3.68 billion. Sell-side analysts anticipate that Nordstrom will post 3.6 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 11th. Shareholders of record on Monday, November 26th will be paid a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a yield of 3.00%. The ex-dividend date is Friday, November 23rd. Nordstrom’s payout ratio is 50.00%.

Nordstrom declared that its Board of Directors has approved a stock buyback program on Wednesday, August 22nd that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the specialty retailer to reacquire up to 14.4% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its shares are undervalued.

In other Nordstrom news, insider Blake W. Nordstrom sold 127,251 shares of the business’s stock in a transaction dated Thursday, September 20th. The stock was sold at an average price of $61.51, for a total transaction of $7,827,209.01. Following the completion of the transaction, the insider now owns 2,519,436 shares of the company’s stock, valued at $154,970,508.36. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Robert Sari sold 8,795 shares of the business’s stock in a transaction dated Wednesday, October 10th. The stock was sold at an average price of $62.50, for a total value of $549,687.50. Following the transaction, the vice president now directly owns 14,960 shares of the company’s stock, valued at approximately $935,000. The disclosure for this sale can be found here. In the last three months, insiders have sold 200,604 shares of company stock valued at $12,621,378. Insiders own 7.05% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of JWN. Raymond James Financial Services Advisors Inc. increased its stake in shares of Nordstrom by 3.0% in the second quarter. Raymond James Financial Services Advisors Inc. now owns 41,073 shares of the specialty retailer’s stock valued at $2,127,000 after buying an additional 1,202 shares during the period. Los Angeles Capital Management & Equity Research Inc. acquired a new position in shares of Nordstrom in the second quarter valued at approximately $4,342,000. Sumitomo Mitsui Trust Holdings Inc. increased its stake in shares of Nordstrom by 6.4% in the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 406,474 shares of the specialty retailer’s stock valued at $21,047,000 after buying an additional 24,478 shares during the period. Chevy Chase Trust Holdings Inc. acquired a new position in shares of Nordstrom in the second quarter valued at approximately $5,115,000. Finally, Barings LLC increased its stake in shares of Nordstrom by 167.8% in the second quarter. Barings LLC now owns 16,119 shares of the specialty retailer’s stock valued at $835,000 after buying an additional 10,100 shares during the period. 60.44% of the stock is owned by hedge funds and other institutional investors.

Nordstrom Company Profile

Nordstrom, Inc, a fashion retailer, provides apparel, shoes, cosmetics, and accessories for women, men, young adults, and children in the United States and Canada. The company operates in two segments, Retail and Credit. The Retail segment offers a range of brand name and private label merchandise through various channels, including Nordstrom branded full-line stores and online store at Nordstrom.com; Nordstrom Rack stores; Nordstromrack.com and HauteLook; Trunk Club clubhouses and TrunkClub.com; Jeffrey boutiques; and clearance stores that operate under the Last Chance name.

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