Academy Sports and Outdoors (NASDAQ: ASO) has received a renewed endorsement from Telsey Advisory Group, which reiterated its outperform rating on the retailer’s shares in a report released on September 2, 2023. The firm has set a $65.00 price target for the stock, reflecting confidence in the company’s potential growth in the sporting goods sector.
Several other analysts have recently expressed their views on Academy Sports and Outdoors. Notably, Cowen issued a “hold” rating on the stock also on September 2, while JPMorgan Chase & Co. adjusted its price target from $54.00 to $56.00 and maintained a “neutral” rating. Barclays initiated coverage with an “equal weight” rating and a price objective of $51.00. In addition, Wells Fargo reaffirmed a “positive” rating on the stock. Evercore ISI raised their target price from $50.00 to $55.00, assigning an “in-line” rating in their most recent research note.
Overall, nine investment analysts have rated Academy Sports and Outdoors with a Buy rating, while eleven have issued a Hold rating, according to data from MarketBeat.com. This leads to a consensus rating of “Hold” and an average price target of $58.37 for the company.
Recent Earnings Results and Dividend Announcement
In its latest earnings report, Academy Sports and Outdoors disclosed earnings per share (EPS) of $1.82 for the quarter ending September 2, 2023. This figure fell short of analysts’ expectations, missing the consensus estimate of $2.14 by $0.32. The company reported revenues of $1.60 billion, slightly below the expected $1.61 billion, although this reflects a 3.3% increase compared to the same quarter in the previous year.
The retailer also announced a quarterly dividend of $0.13, set to be paid on January 15, 2024. Investors on record as of December 18, 2023, will be eligible for this dividend, representing an annualized yield of 1.0%. The company’s dividend payout ratio (DPR) stands at 9.74%, indicating a sustainable approach to returning value to shareholders.
Investment Activity and Company Profile
Recent activity from hedge funds has also impacted Academy Sports and Outdoors. Mackenzie Financial Corp increased its stake in the company by 5.8% during the first quarter, owning 24,491 shares valued at approximately $1.12 million following the acquisition of an additional 1,338 shares.
Natixis Advisors LLC boosted its holdings by 14.2%, now owning 18,975 shares worth around $865,000. US Bancorp DE saw a significant increase of 280.0% in its holdings, acquiring an additional 1,221 shares, bringing its total to 1,657 shares valued at $76,000. Jefferies Financial Group and PNC Financial Services Group have also made notable adjustments to their positions.
Academy Sports and Outdoors operates as a prominent sporting goods and outdoor recreational retailer in the United States. Its offerings include a wide range of products such as camping gear, fishing equipment, and hunting supplies. The company has established a solid presence in the market, catering to outdoor enthusiasts and sports lovers alike.
As Academy Sports and Outdoors continues to navigate the evolving retail landscape, its performance in the upcoming quarters will be closely monitored by investors and analysts alike, particularly regarding its ability to meet or exceed earnings expectations.
