Nordstrom (NYSE:JWN) Board Approves Stock Repurchase Program

Nordstrom (NYSE:JWNGet Rating) announced that its Board of Directors has authorized a share buyback plan on Tuesday, May 24th, RTT News reports. The company plans to repurchase $500.00 million in shares. This repurchase authorization permits the specialty retailer to purchase up to 15.2% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its stock is undervalued.

JWN has been the subject of a number of research reports. JPMorgan Chase & Co. dropped their price objective on Nordstrom from $24.00 to $22.00 in a research note on Monday, May 16th. StockNews.com initiated coverage on Nordstrom in a research note on Thursday, March 31st. They issued a “buy” rating for the company. Deutsche Bank Aktiengesellschaft lifted their price objective on Nordstrom from $22.00 to $31.00 in a research note on Wednesday, March 2nd. BMO Capital Markets lifted their target price on Nordstrom from $23.00 to $30.00 and gave the company a “market perform” rating in a report on Wednesday, March 2nd. Finally, Citigroup lifted their target price on Nordstrom from $25.00 to $27.00 in a report on Wednesday, March 2nd. Three analysts have rated the stock with a sell rating, ten have given a hold rating and four have issued a buy rating to the stock. According to MarketBeat.com, Nordstrom presently has a consensus rating of “Hold” and a consensus price target of $29.07.

JWN stock traded down $0.77 during trading on Tuesday, hitting $20.68. 16,312,793 shares of the company’s stock were exchanged, compared to its average volume of 6,156,102. Nordstrom has a 52-week low of $18.65 and a 52-week high of $38.48. The company has a current ratio of 0.96, a quick ratio of 0.27 and a debt-to-equity ratio of 4.91. The stock has a market capitalization of $3.30 billion, a price-to-earnings ratio of 19.51, a PEG ratio of 1.14 and a beta of 2.25. The business has a 50-day moving average price of $26.21 and a two-hundred day moving average price of $24.52.

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

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 15th. Stockholders of record on Tuesday, May 31st will be issued a $0.19 dividend. The ex-dividend date of this dividend is Friday, May 27th. This represents a $0.76 dividend on an annualized basis and a dividend yield of 3.68%. Nordstrom’s payout ratio is 71.70%.

In other news, CFO Anne L. Bramman sold 13,334 shares of the company’s stock in a transaction dated Monday, April 18th. The shares were 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 of the company’s stock, valued at $3,452,737.38. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 5.45% of the stock is currently owned by corporate insiders.

Nordstrom Company Profile (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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