Bank of America Cuts Nordstrom (NYSE:JWN) Price Target to $21.00

Nordstrom (NYSE:JWNGet Rating) had its target price reduced by Bank of America from $26.00 to $21.00 in a research note published on Wednesday morning, The Fly reports. They currently have an underperform rating on the specialty retailer’s stock.

Several other analysts also recently issued reports on JWN. Citigroup decreased their target price on Nordstrom from $27.00 to $22.00 and set a neutral rating on the stock in a research note on Wednesday. Zacks Investment Research raised Nordstrom from a hold rating to a buy rating and set a $26.00 target price on the stock in a research note on Wednesday, May 18th. StockNews.com initiated coverage on Nordstrom in a research note on Thursday, March 31st. They set a buy rating on the stock. Credit Suisse Group lifted their target price on Nordstrom from $26.00 to $29.00 and gave the company a neutral rating in a research note on Wednesday, March 2nd. Finally, BMO Capital Markets lifted their price objective on Nordstrom from $23.00 to $30.00 and gave the stock a market perform rating in a research note on Wednesday, March 2nd. Three analysts have rated the stock with a sell rating, eleven have given a hold rating and four have given a buy rating to the stock. According to MarketBeat, the company presently has an average rating of Hold and a consensus price target of $27.29.

JWN stock opened at $26.56 on Wednesday. Nordstrom has a twelve month low of $18.65 and a twelve month high of $38.48. The company has a quick ratio of 0.27, a current ratio of 0.96 and a debt-to-equity ratio of 4.91. The stock has a market cap of $4.23 billion, a P/E ratio of 25.06, a PEG ratio of 1.14 and a beta of 2.25. The business’s 50-day moving average price is $26.12 and its 200-day moving average price is $24.40.

Nordstrom (NYSE:JWNGet Rating) last posted its quarterly earnings data on Tuesday, May 24th. The specialty retailer reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The company had revenue of $3.57 billion for the quarter, compared to analysts’ expectations of $3.29 billion. Nordstrom had a net margin of 1.20% and a return on equity of 70.74%. The firm’s quarterly revenue was up 18.6% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.64) earnings per share. On average, equities research analysts expect that Nordstrom will post 3.3 earnings per share for the current fiscal year.

Nordstrom declared that its board has initiated a share buyback plan on Tuesday, May 24th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the specialty retailer to buy up to 15.2% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 15th. Investors of record on Tuesday, May 31st will be issued a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a yield of 2.86%. The ex-dividend date is Friday, May 27th. Nordstrom’s payout ratio is currently 71.70%.

In other Nordstrom news, CFO Anne L. Bramman sold 13,334 shares of the company’s stock in a transaction on Monday, April 18th. The stock was sold at an average price of $28.74, for a total value of $383,219.16. Following the completion of the sale, the chief financial officer now directly owns 120,137 shares in the company, valued at approximately $3,452,737.38. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Anne L. Bramman sold 13,333 shares of the company’s stock in a transaction on Thursday, May 26th. The stock was sold at an average price of $24.20, for a total value of $322,658.60. Following the completion of the sale, the chief financial officer now owns 106,804 shares of the company’s stock, valued at $2,584,656.80. The disclosure for this sale can be found here. 5.45% of the stock is owned by insiders.

Hedge funds have recently modified their holdings of the business. Natixis lifted its holdings in shares of Nordstrom by 18.8% in the 3rd quarter. Natixis now owns 447,545 shares of the specialty retailer’s stock worth $11,838,000 after buying an additional 70,849 shares during the period. Cambridge Investment Research Advisors Inc. lifted its holdings in shares of Nordstrom by 124.6% in the 4th quarter. Cambridge Investment Research Advisors Inc. now owns 39,360 shares of the specialty retailer’s stock worth $890,000 after buying an additional 21,837 shares during the period. Russell Investments Group Ltd. lifted its holdings in shares of Nordstrom by 1,420.9% in the 4th quarter. Russell Investments Group Ltd. now owns 92,745 shares of the specialty retailer’s stock worth $2,096,000 after buying an additional 86,647 shares during the period. Rafferty Asset Management LLC lifted its holdings in shares of Nordstrom by 28.2% in the 4th quarter. Rafferty Asset Management LLC now owns 46,273 shares of the specialty retailer’s stock worth $1,047,000 after buying an additional 10,187 shares during the period. Finally, Moors & Cabot Inc. purchased a new stake in shares of Nordstrom during the 3rd quarter worth $214,000. Institutional investors and hedge funds own 57.27% of the company’s stock.

About Nordstrom (Get Rating)

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; TrunkClub.com; Nordstrom.ca; Nordstrom stores; Nordstrom Rack stores; Nordstrom Locals; Nordstromrack.com and HauteLook; clearance stores under the Last Chance name; Trunk Club clubhouses; and Jeffrey boutiques.

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