Nordstrom (NYSE:JWN) Stock Price Down 8.5% – Should You Sell?

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

Analysts Set New Price Targets

Several brokerages recently commented on JWN. Citigroup upped their price target on shares of Nordstrom from $22.00 to $23.00 and gave the company a “neutral” rating in a report on Tuesday, November 19th. JPMorgan Chase & Co. upped their target price on Nordstrom from $19.00 to $20.00 and gave the company an “underweight” rating in a research note on Wednesday, August 28th. KeyCorp cut Nordstrom from an “overweight” rating to a “sector weight” rating in a report on Thursday, September 26th. Bank of America increased their target price on Nordstrom from $20.00 to $22.00 and gave the stock an “underperform” rating in a research note on Wednesday. Finally, Barclays raised shares of Nordstrom from an “underweight” rating to an “equal weight” rating and boosted their target price for the company from $18.00 to $23.00 in a research note on Thursday, September 5th. Four equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and one has given a buy rating to the company’s stock. Based on data from MarketBeat, Nordstrom has a consensus rating of “Hold” and an average price target of $20.65.

Nordstrom Price Performance

The firm has a market cap of $3.66 billion, a P/E ratio of 12.87 and a beta of 2.59. 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 firm has a 50-day simple moving average of $22.86 and a 200-day simple moving average of $22.22.

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

Nordstrom Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 18th. Shareholders of record on Tuesday, December 3rd will be issued a $0.19 dividend. This represents a $0.76 annualized dividend and a yield of 3.41%. The ex-dividend date is Tuesday, December 3rd. Nordstrom’s dividend payout ratio is currently 44.44%.

Insider Transactions at Nordstrom

In related news, COO Alexis Depree sold 20,000 shares of Nordstrom stock in a transaction that occurred on 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 sale, the chief operating officer now directly owns 169,331 shares in the company, valued at $3,928,479.20. This trade represents a 10.56 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 5.78% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Vanguard Group Inc. boosted 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 purchasing an additional 579,001 shares in the last quarter. Victory Capital Management Inc. boosted its holdings 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 buying an additional 57,546 shares in the last quarter. Dimensional Fund Advisors LP grew its position in 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 buying an additional 137,094 shares during the period. American Century Companies Inc. increased its holdings in Nordstrom by 66.2% in 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 buying an additional 661,769 shares in the last quarter. Finally, Geode Capital Management LLC raised its position in shares of Nordstrom by 0.3% in the third quarter. Geode Capital Management LLC now owns 1,625,616 shares of the specialty retailer’s stock worth $36,570,000 after acquiring an additional 5,407 shares during the period. 88.73% of the stock is currently owned by hedge funds and other 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.