Nordstrom (NYSE:JWN) Trading Down 8.5% – Here’s Why

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

Wall Street Analyst Weigh In

Several research firms recently issued reports on JWN. Barclays raised shares of Nordstrom from an “underweight” rating to an “equal weight” rating and lifted their price objective for the company from $18.00 to $23.00 in a research note on Thursday, September 5th. UBS Group boosted their price target on Nordstrom from $13.00 to $14.50 and gave the stock a “sell” rating in a research report on Wednesday. Bank of America increased their price objective on Nordstrom from $20.00 to $22.00 and gave the company an “underperform” rating in a report on Wednesday. Citigroup boosted their target price on Nordstrom from $22.00 to $23.00 and gave the stock a “neutral” rating in a report on Tuesday, November 19th. Finally, JPMorgan Chase & Co. increased their price target on Nordstrom from $19.00 to $20.00 and gave the company an “underweight” rating in a report on Wednesday, August 28th. Three equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, Nordstrom currently has a consensus rating of “Hold” and an average price target of $21.29.

Nordstrom Trading Down 8.1 %

The company has a current ratio of 1.07, a quick ratio of 0.41 and a debt-to-equity ratio of 2.76. The stock has a market capitalization of $3.71 billion, a P/E ratio of 14.41 and a beta of 2.59. The business’s fifty day simple moving average is $22.85 and its two-hundred day simple moving average is $22.23.

Nordstrom (NYSE:JWN) last released its earnings results on Tuesday, November 26th. The specialty retailer reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.22 by $0.11. Nordstrom had a negative net margin of 1.44% and a negative return on equity of 21.26%. The business had revenue of $3.35 billion during the quarter, compared to analysts’ expectations of $3.34 billion. During the same quarter last year, the company earned $0.25 earnings per share. The firm’s revenue was up 4.6% on a year-over-year basis. As a group, analysts forecast that Nordstrom, Inc. will post 1.91 earnings per share for the current year.

Nordstrom Announces Dividend

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

Insider Buying and Selling

In related news, COO Alexis Depree sold 20,000 shares of the stock in a transaction dated Tuesday, September 24th. The shares were sold at an average price of $23.20, for a total value of $464,000.00. Following the completion of the transaction, the chief operating officer now owns 169,331 shares of the company’s stock, valued at $3,928,479.20. This represents a 10.56 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 5.78% of the stock is owned by company insiders.

Institutional Investors Weigh In On Nordstrom

Several large investors have recently modified their holdings of the stock. Vanguard Group Inc. lifted its position in shares of Nordstrom by 5.7% during 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 during the period. Victory Capital Management Inc. raised its stake in Nordstrom by 1.7% during 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 in the last quarter. Dimensional Fund Advisors LP lifted 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 valued at $66,557,000 after acquiring an additional 137,094 shares during the period. American Century Companies Inc. boosted its stake in shares of Nordstrom by 66.2% in the 2nd 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 in the last quarter. Finally, Geode Capital Management LLC increased its position in shares of Nordstrom by 0.3% during the 3rd quarter. Geode Capital Management LLC now owns 1,625,616 shares of the specialty retailer’s stock worth $36,570,000 after purchasing an additional 5,407 shares in the last quarter. 88.73% of the stock is currently owned by institutional investors.

Nordstrom Company Profile

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.