Shares of Academy Sports and Outdoors (NASDAQ: ASO) received a reaffirmed outperform rating from Telsey Advisory Group, as reported on Wednesday morning. The firm set a price target of $65.00 for the stock, reflecting confidence in the company’s performance amidst a competitive retail landscape.
This assessment comes as various investment analysts have weighed in on ASO’s stock recently. On September 3, 2023, Cowen reiterated a “hold” rating for Academy Sports and Outdoors, while JPMorgan Chase & Co. raised their price target from $54.00 to $56.00, maintaining a “neutral” rating. Barclays initiated coverage of the company on September 30, assigning an “equal weight” rating with a price objective of $51.00. Additionally, Wells Fargo & Company reaffirmed a “positive” rating on the stock the same day as JPMorgan’s update.
The consensus among analysts remains a cautious optimism, with nine analysts rating ASO as a Buy and eleven issuing Hold ratings. According to data from MarketBeat.com, the average price target stands at $58.37.
Recent Earnings Report Highlights
Academy Sports and Outdoors last reported earnings on September 2, 2023, revealing an earnings per share (EPS) of $1.82. This figure fell short of the consensus estimate of $2.14 by ($0.32). The company recorded revenue of $1.60 billion, slightly below the anticipated $1.61 billion. Despite this miss, revenue grew by 3.3% compared to the same quarter last year, where the EPS was $2.03. Analysts predict an EPS of 5.59 for the current fiscal year.
In addition to the earnings report, Academy Sports and Outdoors announced a quarterly dividend of $0.13, set to be distributed on January 15, 2024. Shareholders on record by December 18, 2023, will be eligible for this dividend, which represents an annualized yield of 1.0%. The company maintains a dividend payout ratio (DPR) of 9.74%.
Hedge Fund Activity and Market Position
Several hedge funds have recently adjusted their positions in Academy Sports and Outdoors. Mackenzie Financial Corp increased its stake by 5.8%, now holding 24,491 shares valued at approximately $1.12 million. Natixis Advisors LLC raised its holdings by 14.2%, acquiring an additional 2,365 shares to reach a total of 18,975 shares worth about $865,000.
US Bancorp DE made a significant move, increasing its holdings by 280.0% to own 1,657 shares valued at $76,000. Jefferies Financial Group Inc. also entered the market with a new stake worth approximately $351,000. PNC Financial Services Group Inc. raised its stake by 28.8%, now owning 8,604 shares valued at $392,000.
Academy Sports and Outdoors, based in the United States, operates as a retailer focused on sporting goods and outdoor recreation. Its product offerings include camping gear, fishing equipment, and hunting supplies, catering to a broad customer base.
As the company navigates the retail environment, the support from analysts and hedge funds may play a pivotal role in shaping its future performance.
