4. DICK’S Sporting Goods, Inc. (NYSE:DKS)
Number of Hedge Fund Holders: 40
DICK’S Sporting Goods, Inc. (NYSE:DKS) runs a chain of retail stores specializing in sporting goods, primarily in the United States. The company’s products include sporting equipment, fitness equipment, golf equipment, and hunting and fishing gear, as well as apparel, footwear, and accessories. It is one of the best fitness stocks to watch. DICK’S Sporting Goods, Inc. (NYSE:DKS) increased its latest quarterly dividend by 105.1% to $1 per share, which was distributed to shareholders on March 31.
On March 14, Jefferies initiated coverage of DICK’S Sporting Goods, Inc. (NYSE:DKS) Sporting with a Hold rating and a $155 price target. The analyst noted that the company is a top-performing sports retailer, but there aren’t many factors that could drive the stock price higher in the near future. The analyst appreciates DICK’S Sporting Goods, Inc. (NYSE:DKS)’s exceptional ability to invest in in-store experiences, but there is a risk to the expected merchandise margin expansion for 2023.
According to Insider Monkey’s fourth quarter database, 40 hedge funds were long DICK’S Sporting Goods, Inc. (NYSE:DKS), compared to 37 funds in the prior quarter. Stephen Mandel’s Lone Pine Capital is the largest stakeholder of the company, with 5 million shares worth $603.2 million.
Here is what Baron Fund has to say about DICK’S Sporting Goods, Inc. (NYSE:DKS) in its Q1 2022 investor letter:
“Dick’s Sporting Goods, Inc. was the first stock Michael recommended to us shortly after he joined Baron Capital in 2003. Dick’s share price has since increased about nine-fold. Unfortunately, we sold our investment in Dick’s about six years ago and, although it was a successful investment, we did not realize the full benefit of Michael’s recommendation. We sold too soon because I was concerned that competition from internet retailers would have a permanent negative impact on Dick’s stores’ profitability. I was wrong. Dick’s stock price so far has about doubled after we sold…and its prospects have brightened!
We sold even though we considered Ed Stack, Dick’s Chairm”n and CEO, a terrific retailer, a great entrepreneur and a special person. Ed had built Dick’s from three bait and tackle stores his dad started into a uniquely positioned, nationwide chain of 730 sporting goods stores. In fact, Dick’s is now the largest nationwide sporting goods chain. Ed had purchased the three bait and tackle stores, the foundation of Dick’s business, from his dad. Ed’s mother loaned him the money to buy his dad’s stores! I’m not exactly sure what that signifies. But it may have something to do with Carl Icahn’s proclamation that “everything I have is for sale except my children…and maybe my wife.”
Ed and his newly appointed CEO Lauren Hobart visited us last month. Ed asked for the meeting to introduce us to Lauren, as well as to discuss the prospects for Dick’s new, large format stores with attached outdoor, student athletic fields. Lauren then described how well its new format stores were doing in two smaller communities. We also spoke about the successes of Dick’s omni-channel retailing efforts and how desirable Dick’s stores have become to shopping centers trying to lure shoppers to return to their malls.”
