On March 14, 2023, Jefferies initiated coverage of Academy Sports & Outdoors with a Buy recommendation.

Analyst Price Forecast Suggests 18.14% Upside

As of March 15, 2023, the average one-year price target for Academy Sports & Outdoors is $70.85. The forecasts range from a low of $58.58 to a high of $84.00. The average price target represents an increase of 18.14% from its latest reported closing price of $59.97.

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The projected annual revenue for Academy Sports & Outdoors is $6,537MM, an increase of 1.24%. The projected annual non-GAAP EPS is $7.58.

Academy Sports & Outdoors Declares $0.09 Dividend

On March 2, 2023 the company declared a regular quarterly dividend of $0.09 per share ($0.36 annualized). Shareholders of record as of March 23, 2023 will receive the payment on April 13, 2023. Previously, the company paid $0.08 per share.

At the current share price of $59.97 / share, the stock’s dividend yield is 0.60%. Looking back five years and taking a sample every week, the average dividend yield has been 1.05%, the lowest has been 0.49%, and the highest has been 2.74%. The standard deviation of yields is 0.52 (n=114).

The current dividend yield is 0.86 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.05. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

What are Large Shareholders Doing?

IJR – iShares Core S&P Small-Cap ETF holds 5,908K shares representing 7.56% ownership of the company. In it’s prior filing, the firm reported owning 6,219K shares, representing a decrease of 5.26%. The firm increased its portfolio allocation in ASO by 7.66% over the last quarter.

FCNTX – Fidelity Contrafund holds 3,512K shares representing 4.49% ownership of the company. In it’s prior filing, the firm reported owning 3,826K shares, representing a decrease of 8.94%. The firm increased its portfolio allocation in ASO by 14.00% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 2,432K shares representing 3.11% ownership of the company. In it’s prior filing, the firm reported owning 2,560K shares, representing a decrease of 5.29%. The firm increased its portfolio allocation in ASO by 9.25% over the last quarter.

NAESX – Vanguard Small-Cap Index Fund Investor Shares holds 2,054K shares representing 2.63% ownership of the company. In it’s prior filing, the firm reported owning 2,161K shares, representing a decrease of 5.18%. The firm increased its portfolio allocation in ASO by 9.64% over the last quarter.

Fuller & Thaler Asset Management holds 1,958K shares representing 2.51% ownership of the company. In it’s prior filing, the firm reported owning 1,896K shares, representing an increase of 3.17%. The firm increased its portfolio allocation in ASO by 13.45% over the last quarter.

What is the Fund Sentiment?

There are 766 funds or institutions reporting positions in Academy Sports & Outdoors. This is an increase of 74 owner(s) or 10.69% in the last quarter. Average portfolio weight of all funds dedicated to ASO is 0.32%, an increase of 14.96%. Total shares owned by institutions increased in the last three months by 1.42% to 94,551K shares. The put/call ratio of ASO is 2.11, indicating a bearish outlook.

Academy Sports and Outdoors Background Information
(This description is provided by the company.)

Academy is a leading full-line sporting goods and outdoor recreation retailer in the United States. Originally founded in 1938 as a family business in Texas, Academy has grown to 259 stores across 16 contiguous states. Academy’s mission is to provide ‘Fun for All’ and Academy fulfills this mission with a localized merchandising strategy and value proposition that strongly connects with a broad range of consumers. Academy’s product assortment focuses on key categories of outdoor, apparel, footwear and sports & recreation through both leading national brands and a portfolio of 17 private label brands, which go well beyond traditional sporting goods and apparel offerings.

This article originally appeared on Fintel