Nordstrom (JWN) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of Nordstrom (NYSE:JWN) from a buy rating to a hold rating in a research report report published on Monday.

According to Zacks, “Nordstrom lagged the industry in the past month due to the company’s credit-card interest-related error, which hurt investor sentiments despite an otherwise strong third-quarter fiscal 2018. The company estimates to refund less than 4% of its cardholders amounts less than $100. Further, its higher cost of investments for occupancy, technology, supply chain and marketing initiatives are denting margins. Higher SG&A expense may also weigh on profitability. Nonetheless, the company boasts 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.”

Other analysts have also recently issued reports about the company. Wedbush initiated coverage on Nordstrom in a research report on Wednesday, October 31st. They set a $59.00 price objective on the stock. UBS Group lifted their price objective on Nordstrom from $69.00 to $73.00 and gave the company a buy rating in a research report on Friday, August 17th. Deutsche Bank lifted their price objective on Nordstrom from $56.00 to $61.00 and gave the company a buy rating in a research report on Friday, August 17th. ValuEngine raised Nordstrom from a hold rating to a buy rating in a research report on Monday, August 20th. Finally, Goldman Sachs Group initiated coverage on Nordstrom in a research report on Monday, September 3rd. They set a buy rating and a $73.00 price objective on the stock. One equities research analyst has rated the stock with a sell rating, fourteen have assigned a hold rating and seven have given a buy rating to the stock. The stock presently has a consensus rating of Hold and an average target price of $57.82.

NYSE JWN opened at $52.33 on Monday. The company has a current ratio of 1.12, a quick ratio of 0.44 and a debt-to-equity ratio of 2.23. The stock has a market capitalization of $8.82 billion, a P/E ratio of 17.68, a price-to-earnings-growth ratio of 2.42 and a beta of 0.59. Nordstrom has a 1 year low of $40.61 and a 1 year high of $67.75.

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

Nordstrom declared that its board has initiated a stock buyback plan on Wednesday, August 22nd that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the specialty retailer to purchase up to 14.4% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board believes its shares are undervalued.

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 11th. Stockholders of record on Monday, November 26th will be issued a dividend of $0.37 per share. The ex-dividend date of this dividend is Friday, November 23rd. This represents a $1.48 annualized dividend and a dividend yield of 2.83%. Nordstrom’s payout ratio is 50.00%.

In other news, insider Blake W. Nordstrom sold 127,251 shares of Nordstrom stock in a transaction that occurred on Thursday, September 20th. The shares were 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 directly owns 2,519,436 shares in the company, valued at $154,970,508.36. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Christine Deputy sold 11,534 shares of Nordstrom stock in a transaction that occurred on Monday, September 10th. The shares were sold at an average price of $65.87, for a total transaction of $759,744.58. Following the transaction, the insider now owns 76,463 shares of the company’s stock, valued at $5,036,617.81. The disclosure for this sale can be found here. Insiders have sold 200,604 shares of company stock valued at $12,621,378 over the last quarter. Company insiders own 7.05% of the company’s stock.

Hedge funds have recently added to or reduced their stakes in the company. Centaurus Financial Inc. purchased a new position in shares of Nordstrom during the second quarter valued at approximately $112,000. First Hawaiian Bank purchased a new position in Nordstrom in the 3rd quarter worth approximately $113,000. Kiley Juergens Wealth Management LLC purchased a new position in Nordstrom in the 2nd quarter worth approximately $118,000. Captrust Financial Advisors raised its holdings in Nordstrom by 426.1% in the 3rd quarter. Captrust Financial Advisors now owns 2,099 shares of the specialty retailer’s stock worth $126,000 after acquiring an additional 1,700 shares during the last quarter. Finally, Stratos Wealth Partners LTD. purchased a new position in Nordstrom in the 3rd quarter worth approximately $145,000. Hedge funds and other institutional investors own 56.32% of the company’s stock.

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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