Dick's Sporting Goods: 4 Different Insiders Have Purchased Shares During The Last 30 Days

Jun. 5.14 | About: Dick's Sporting (DKS)

Summary

4 insiders purchased Dick's Sporting Goods stock within one month.

The stock was sold by no insiders in the month of intensive purchasing.

2 of these 4 insiders increased their holdings by more than 10%.

Dick's Sporting Goods (NYSE:DKS) operates as a sports and fitness retailer primarily in the eastern United States.
Click to enlarge

Insider buying during the last 30 days

Here is a table of Dick's Sporting Goods' insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Vincent Byrd Director June 3 2,500 9,366
shares
+36.4%
Andre Hawaux CFO May 28 2,300 58,653 shares +4.1%
Larry Stone Director May 28 23,000 51,464 shares +80.8%
Edward Stack CEO May 28 115,000 17,593,829 shares +0.7%
Click to enlarge

There have been 142,800 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Dick's Sporting Goods' insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
June 2014 2,500 0
May 2014 140,300 0
April 2014 0 0
March 2014 2,900 129,341
February 2014 0 0
January 2014 0 0
December 2013 0 0
November 2013 1,000 157,521
October 2013 0 0
September 2013 0 236,886
August 2013 6,400 0
July 2013 0 0
June 2013 0 0
May 2013 0 0
April 2013 0 0
March 2013 1,000 444,537
February 2013 0 0
January 2013 0 0
Click to enlarge

There have been 154,100 shares purchased and there have been 968,285 shares sold by insiders since January 2013. The month of May 2014 has seen the most insider buying.

Financials

Dick's Sporting Goods reported the first-quarter, which ended May 3, financial results on May 20 with the following highlights:

Revenue $1.4 billion
Net income $70.0 million
Cash $139.4 million
Debt $6.8 million
Click to enlarge

The stock plunged after these results and the four insiders purchased their shares after the plunge.

Outlook

Dick's Sporting Goods' guidance is as follows:

Q2/2014 FY2014
Same store sales growth 1%-3% 1%-3%
Non-GAAP EPS $0.62-$0.67 $2.70-$2.85
Click to enlarge

Competition

Dick's Sporting Goods' competitors include Hibbett Sports (NASDAQ:HIBB), and Big 5 Sporting Goods (NASDAQ:BGFV). Here is a table comparing these companies.

Company DKS HIBB BGFV
Market Cap: 5.39B 1.37B 257.22M
Employees: 11,200 2,900 9,000
Qtrly Rev Growth (yoy): 0.08 0.09 -0.06
Revenue: 6.32B 873.88M 978.32M
Gross Margin: 0.31 0.36 0.33
EBITDA: 718.16M 131.10M 60.33M
Operating Margin: 0.09 0.13 0.04
Net Income: 342.76M 73.05M 22.49M
EPS: 2.74 2.79 1.02
P/E: 16.23 18.99 11.45
PEG (5 yr expected): 1.18 1.29 0.70
P/S: 0.85 1.56 0.26
Click to enlarge

Dick's Sporting Goods has the second-lowest P/S ratio among these three companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
HIBB 1,000 3,000
BGFV 0 1,600
Click to enlarge

Only Dick's Sporting Goods has seen intensive insider buying during the last 30 days.

Conclusion

There have been four different insiders buying Dick's Sporting Goods, and there have not been any insiders selling Dick's Sporting Goods during the last 30 days. Two of these four insiders increased their holdings by more than 10%. Dick's Sporting Goods has an insider ownership of 1.32%.

The four insiders purchased their shares at prices ranging from $42.46 to $44.30. I believe Dick's Sporting Goods could be a good pick below $44.30 based on the intensive insider buying.

Click to enlarge

(Source: Investor presentation)

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in DKS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.