Earnings Beat Boosts Dick's Sporting Goods Stock

The equity hit a six-month low just yesterday

Digital Content Manager
Mar 10, 2020 at 10:35 AM
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Dick's Sporting Goods Inc (NYSE:DKS) is getting a big boost today following its fourth-quarter earnings report, up 10.5% at $38.10. The sports equipment retailer reported earnings of $1.32 and $2.61 billion in revenue, topping analysts' expectations, and hiked its quarterly dividend by $13.6. Meanwhile, the company also announced it would be pulling guns from 440 of its stores in 2020, expanding on its efforts directly following the 2018 Parkland, Florida school shooting. 

Today, DKS is looking to take out its 320-day for the first time since late-February. This pop comes just one day after the equity hit a six-month intraday low of $32.14. The security may have found a bottom here, seeing as the $32 region has served as a floor on the charts since mid-2018. On the other hand, the security is still off 23% for the year. 

While analysts have yet to chime in this morning, there's plenty of room for upgrades to propel DKS higher. Just five of the 17 in coverage consider the stock a "strong buy," while 11 say "hold," and one says "sell." 

While short interest has started falling off, down 6.5% in the last reporting period, these bears are still firmly in control. The 12.55 million shares sold short account for 20.6% of the stock's available float, and would take 6.3 days to cover at DKS's average pace of trading. 

 

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