Nordstrom (NYSE:JWN) Trading Down 8.5% – Time to Sell?

Nordstrom, Inc. (NYSE:JWN)’s share price dropped 8.5% during trading on Wednesday . The stock traded as low as $21.87 and last traded at $22.52. Approximately 444,972 shares were traded during trading, a decline of 85% from the average daily volume of 3,029,427 shares. The stock had previously closed at $24.62.

Analyst Ratings Changes

A number of analysts have commented on the stock. Telsey Advisory Group boosted their price target on shares of Nordstrom from $24.00 to $26.00 and gave the stock a “market perform” rating in a research report on Wednesday. JPMorgan Chase & Co. boosted their target price on Nordstrom from $19.00 to $20.00 and gave the stock an “underweight” rating in a report on Wednesday, August 28th. TD Cowen increased their price target on Nordstrom from $24.00 to $25.00 and gave the company a “hold” rating in a research note on Wednesday, August 28th. Barclays raised Nordstrom from an “underweight” rating to an “equal weight” rating and boosted their price objective for the stock from $18.00 to $23.00 in a research note on Thursday, September 5th. Finally, Citigroup raised their target price on Nordstrom from $22.00 to $23.00 and gave the company a “neutral” rating in a research note on Tuesday, November 19th. Three investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, Nordstrom presently has an average rating of “Hold” and an average price target of $21.29.

Nordstrom Price Performance

The stock has a 50 day moving average of $22.85 and a two-hundred day moving average of $22.23. The company has a debt-to-equity ratio of 2.76, a quick ratio of 0.41 and a current ratio of 1.07. The stock has a market cap of $3.71 billion, a PE ratio of 14.41 and a beta of 2.59.

Nordstrom (NYSE:JWN) last released its earnings results on Tuesday, November 26th. The specialty retailer reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.11. The business had revenue of $3.35 billion for the quarter, compared to the consensus estimate of $3.34 billion. Nordstrom had a negative net margin of 1.44% and a negative return on equity of 21.26%. The firm’s quarterly revenue was up 4.6% compared to the same quarter last year. During the same period last year, the firm posted $0.25 earnings per share. Equities analysts anticipate that Nordstrom, Inc. will post 1.91 EPS for the current year.

Nordstrom Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, December 18th. Stockholders of record on Tuesday, December 3rd will be given a $0.19 dividend. The ex-dividend date of this dividend is Tuesday, December 3rd. This represents a $0.76 annualized dividend and a dividend yield of 3.36%. Nordstrom’s dividend payout ratio (DPR) is presently 48.41%.

Insider Activity

In other Nordstrom news, COO Alexis Depree sold 20,000 shares of Nordstrom stock in a transaction dated Tuesday, September 24th. The stock was sold at an average price of $23.20, for a total transaction of $464,000.00. Following the transaction, the chief operating officer now owns 169,331 shares of the company’s stock, valued at $3,928,479.20. The trade was a 10.56 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 5.78% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its position in Nordstrom by 5.7% in the 1st quarter. Vanguard Group Inc. now owns 10,653,007 shares of the specialty retailer’s stock worth $215,936,000 after buying an additional 579,001 shares in the last quarter. Victory Capital Management Inc. increased its stake in shares of Nordstrom by 1.7% in the second quarter. Victory Capital Management Inc. now owns 3,371,988 shares of the specialty retailer’s stock worth $71,554,000 after acquiring an additional 57,546 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of Nordstrom by 4.6% during the second quarter. Dimensional Fund Advisors LP now owns 3,136,639 shares of the specialty retailer’s stock worth $66,557,000 after acquiring an additional 137,094 shares in the last quarter. American Century Companies Inc. boosted its position in Nordstrom by 66.2% during the second quarter. American Century Companies Inc. now owns 1,661,227 shares of the specialty retailer’s stock valued at $35,251,000 after purchasing an additional 661,769 shares during the last quarter. Finally, Geode Capital Management LLC grew its stake in Nordstrom by 0.3% in the third quarter. Geode Capital Management LLC now owns 1,625,616 shares of the specialty retailer’s stock valued at $36,570,000 after purchasing an additional 5,407 shares in the last quarter. 88.73% of the stock is owned by hedge funds and other institutional investors.

About Nordstrom

Nordstrom, Inc, a fashion retailer, provides apparels, shoes, beauty, accessories, and home goods 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 stores and online at Nordstrom.com; Nordstrom.ca; Nordstrom stores; Nordstrom Rack stores; Nordstrom Locals; ASOS; Nordstromrack.com; mobile application; and clearance stores under the Last Chance name.