DSW Inc. (NYSE:DSW)’s share price traded up 17.5% during trading on Tuesday following a stronger than expected earnings report. The company traded as high as $19.39 and last traded at $18.43, with a volume of 16,015,824 shares trading hands. The stock had previously closed at $15.69.
The company reported $0.38 EPS for the quarter, topping the consensus estimate of $0.29 by $0.09. The firm had revenue of $680.40 million during the quarter, compared to analyst estimates of $666.66 million. DSW had a net margin of 4.32% and a return on equity of 12.06%. DSW’s revenue was up 3.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.35 EPS.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 29th. Investors of record on Tuesday, September 19th will be paid a dividend of $0.20 per share. The ex-dividend date of this dividend is Monday, September 18th. This represents a $0.80 annualized dividend and a dividend yield of 4.21%. DSW’s dividend payout ratio (DPR) is presently 55.94%.
DSW declared that its board has approved a stock repurchase program on Tuesday, August 22nd that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to reacquire up to 33.8% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.
Several research analysts recently commented on the stock. Citigroup Inc. boosted their price objective on shares of DSW from $18.00 to $20.00 and gave the stock a “neutral” rating in a research note on Wednesday. Deutsche Bank AG reiterated a “buy” rating and set a $22.00 price objective (up previously from $21.00) on shares of DSW in a research note on Wednesday. Buckingham Research set a $18.00 price objective on shares of DSW and gave the stock a “hold” rating in a research note on Tuesday. B. Riley upgraded shares of DSW from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $18.50 to $22.00 in a research note on Wednesday. Finally, Standpoint Research lowered shares of DSW from a “buy” rating to a “hold” rating in a research note on Tuesday. One research analyst has rated the stock with a sell rating, fourteen have issued a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus target price of $21.83.
In other news, Director Joanne Zaiac sold 4,219 shares of the stock in a transaction on Wednesday, July 5th. The shares were sold at an average price of $17.82, for a total value of $75,182.58. Following the sale, the director now owns 4,313 shares in the company, valued at $76,857.66. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Harvey L. Sonnenberg sold 8,439 shares of the stock in a transaction on Wednesday, June 28th. The stock was sold at an average price of $18.00, for a total transaction of $151,902.00. Following the completion of the sale, the director now owns 12,242 shares in the company, valued at approximately $220,356. The disclosure for this sale can be found here. 20.40% of the stock is owned by corporate insiders.
Several hedge funds have recently added to or reduced their stakes in DSW. FNY Managed Accounts LLC purchased a new stake in shares of DSW during the first quarter worth about $100,000. Ameritas Investment Partners Inc. purchased a new stake in shares of DSW during the first quarter worth about $120,000. State of Tennessee Treasury Department purchased a new stake in shares of DSW during the first quarter worth about $143,000. State of Alaska Department of Revenue purchased a new stake in shares of DSW during the first quarter worth about $154,000. Finally, PNC Financial Services Group Inc. increased its stake in shares of DSW by 3.9% in the first quarter. PNC Financial Services Group Inc. now owns 7,483 shares of the company’s stock worth $155,000 after buying an additional 283 shares during the period. Hedge funds and other institutional investors own 83.62% of the company’s stock.
The stock has a market cap of $1.52 billion, a PE ratio of 13.18 and a beta of 0.83. The stock has a 50 day moving average price of $17.41 and a 200 day moving average price of $18.91.
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About DSW
DSW Inc is a footwear retailer. The Company offers an assortment of brand name dress, casual and athletic footwear and accessories for women, men and kids. The Company operates through two segments: the DSW segment (DSW), which includes DSW stores and dsw.com, and the Affiliated Business Group (ABG) segment.
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