Boenning & Scattergood Inc., a reputable Philadelphia-based investment management firm, recently made headlines after trimming its holdings in Nordstrom, Inc. (NYSE:JWN) by a staggering 69.5% during the fourth quarter of 2020. This move was detailed in its latest 13F filing with the US Securities and Exchange Commission (SEC). According to the report, Boenning & Scattergood held only 9,000 shares of Nordstrom’s stock after selling up to 20,516 shares during the said period.
Nordstrom, which manufactures and sells clothes, shoes and accessories for women, men and children under premium brand names and private labels alongside cosmetics through retail stores and an e-commerce website is one of America’s oldest specialty retail department stores. It operates two segments; Retail and Corporate/Other.
The market overview for JWN stocks on Friday reveals that they opened at $16.08 while holding a significant PE ratio of 10.65 with a price-to-earnings-growth ratio pegged at 1.44 on a beta rate of 2.21 following steady financial performances within recent years.
It must come as somewhat unsettling news to enthusiasts and investors alike to observe such drastic action from Boenning & Scattergood Inc.; however there are several conclusions to draw from this move based on Northstorm’s current financial indices.
The company has maintained stable annual revenue figures over the past few years but still faces numerous challenges unique to retailers across America amid economic boom and recessions in different states across the country alongside the emergence of several E-Commerce companies eating into its customer base since online shopping became more accessible during COVID restrictions in early last year affecting almost all sectors including businesses.
Given these conditions undoubtedly challenge even well-established traditional brands like Nordstrom ultimately having negative consequences reflected in their falling growth projections accounting for institutions moving away from such investments as demonstrated by Boenning & Scattergood. It goes places to remind businesses of the importance of being adaptable and finding ways to stay relevant thus remaining profitable even amid unfavorable climatic circumstances.
Nordstrom, Inc.: High-Quality Retailer Receives Mixed Ratings from Experts
Nordstrom, Inc.: A High-Quality Retailer with Mixed Ratings
Nordstrom, Inc. is a leading manufacturer and trader of clothes, shoes, and accessories for men, women, young adults, and children. The company operates through two segments: Retail and Corporate/Other. While the specialty retailer has recently posted favorable earnings results in Q1 2017 beating analysts’ consensus estimates of $0.65 EPS with actual earnings per share of $0.74 and had revenue of $4.2 billion during the quarter, down 4.2% compared to the same quarter last year; it is currently facing mixed ratings from several institutions.
Several institutional investors have either added or reduced their stakes in Nordstrom lately: Marshall & Sullivan Inc., WA purchased a new stake during the 4th quarter valued at about $37 million; Newbridge Financial Services Group Inc., also bought a new stake during Q4 2016 valued at about $40 million; Captrust Financial Advisors grew its stake in Nordstrom by 44.9% during Q2 2016 to become one of the shareholders having a total value of $58m at present; Rockefeller Capital Management L.P., now has shares valued at $69m after purchasing an additional 3,906 shares during the last quarter while DZ Bank AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main acquired a new position in shares of Nordstrom in Q2 2016 with a total value of around $151m resulting in 66.41% of the stock being owned by hedge funds.
However, Nordstrom received mixed ratings from four equities research analysts out of eighteen experts across research firms including KeyCorp reducing their price target on Nordstrom from $30 to $22 per share on January 20th while assigning an “overweight” rating for the company; Gordon Haskett raised Nordstrom’s rating for the company from “reduce” to “hold” with a $22 target price. On the other hand, Morgan Stanley reduced their target price on Nordstrom from $21 to $19 per share, assigning an “underweight” rating while Citigroup upped their target price on Nordstrom from $17 to $20 per share and gave the stock a “neutral” rating. Currently, Bloomberg.com reveals that Nordstrom has a consensus rating of “Hold” with a consensus target price of $19.61.
In conclusion, Nordstrom, Inc. is a high-quality retailer that continues to adapt to changing trends and generations to remain relevant and competitive; however, its mixed ratings show that there is room for improvement in the eyes of some experts. The company’s expansion into new distribution channels may help propel growth in the near future even though its revenue was down 4.2% compared to last year’s figures despite being able to beat analysts’ earnings estimates for Q1 2017.
