Nordstrom (NYSE:JWN) Upgraded to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of Nordstrom (NYSE:JWN) from a sell rating to a hold rating in a research note released on Wednesday, Zacks.com reports. Zacks Investment Research currently has $13.00 price target on the specialty retailer’s stock.

According to Zacks, “Shares of Nordstrom have lagged the industry in the past three months due to dismal second-quarter fiscal 2020 results, wherein the loss per share was wider than expected and sales missed the Zacks Consensus Estimate. Results continued to reflect the impacts of temporary store closures due to the pandemic. Also, the shift of the Nordstrom Anniversary Sale to the fiscal third quarter this year negatively impacted the top line. Further, weak margins and elevated SG&A expenses are added concerns. However, it is witnessing improved traffic post the reopening of all stores. This is likely to persist in the second half of fiscal 2020 and beyond. Restructuring plans and shut down of 16 full-line stores led to a nearly 20% reduction in overhead costs in the quarter. It remains on track to generate savings of $200-$250 million in fiscal 2020.”

A number of other research analysts have also weighed in on the stock. ValuEngine raised shares of Nordstrom from a buy rating to a strong-buy rating in a research report on Tuesday, October 6th. Wedbush lowered their price objective on Nordstrom from $20.00 to $15.00 and set a neutral rating on the stock in a research report on Friday, August 14th. Morgan Stanley lowered their price objective on Nordstrom from $21.00 to $19.00 and set an equal weight rating on the stock in a research report on Wednesday, August 26th. Telsey Advisory Group lowered their price target on Nordstrom from $18.00 to $17.00 and set a market perform rating on the stock in a research report on Wednesday, August 26th. Finally, Citigroup lowered their price target on Nordstrom from $19.00 to $17.00 and set a neutral rating on the stock in a research report on Wednesday, August 26th. Four research analysts have rated the stock with a sell rating, eleven have assigned a hold rating, two have given a buy rating and one has assigned a strong buy rating to the company. Nordstrom currently has an average rating of Hold and a consensus price target of $25.69.

JWN opened at $12.36 on Wednesday. The company has a debt-to-equity ratio of 18.77, a current ratio of 0.93 and a quick ratio of 0.53. The company’s 50-day moving average is $13.49 and its 200 day moving average is $15.97. Nordstrom has a fifty-two week low of $11.72 and a fifty-two week high of $43.37. The firm has a market capitalization of $1.93 billion, a P/E ratio of -4.25 and a beta of 1.52.

Nordstrom (NYSE:JWN) last released its quarterly earnings results on Tuesday, August 25th. The specialty retailer reported ($1.62) earnings per share for the quarter, missing analysts’ consensus estimates of ($1.50) by ($0.12). Nordstrom had a negative net margin of 3.75% and a negative return on equity of 42.65%. The firm had revenue of $1.78 billion for the quarter, compared to the consensus estimate of $2.40 billion. During the same period in the previous year, the business earned $0.90 earnings per share. The firm’s revenue for the quarter was down 54.1% on a year-over-year basis. On average, equities research analysts expect that Nordstrom will post -3.35 earnings per share for the current year.

Several institutional investors and hedge funds have recently added to or reduced their stakes in JWN. Private Advisor Group LLC purchased a new position in shares of Nordstrom in the second quarter worth about $25,000. Tsfg LLC purchased a new position in Nordstrom during the 3rd quarter valued at about $33,000. Assetmark Inc. increased its holdings in Nordstrom by 3,926.8% during the 2nd quarter. Assetmark Inc. now owns 2,255 shares of the specialty retailer’s stock valued at $35,000 after purchasing an additional 2,199 shares during the period. Rampart Investment Management Company LLC increased its holdings in Nordstrom by 135.8% during the 2nd quarter. Rampart Investment Management Company LLC now owns 2,337 shares of the specialty retailer’s stock valued at $36,000 after purchasing an additional 1,346 shares during the period. Finally, Captrust Financial Advisors purchased a new position in Nordstrom during the 2nd quarter valued at about $36,000. Hedge funds and other institutional investors own 64.39% of the company’s stock.

Nordstrom Company Profile

Nordstrom, Inc, a fashion retailer, provides apparels, shoes, cosmetics, and accessories for women, men, young adults, and children. It offers a range of brand name and private label merchandise through various channels, such as Nordstrom branded full-line stores and online store at Nordstrom.com; Nordstrom Rack stores; Nordstromrack.com and HauteLook; Jeffrey boutiques; clearance stores that operate under the Last Chance name; Trunk Club clubhouses and TrunkClub.com; and Nordstrom Locals.

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Analyst Recommendations for Nordstrom (NYSE:JWN)

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