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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.

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Vincent ByrdDirectorJune 32,5009,366
shares
+36.4%
Andre HawauxCFOMay 282,30058,653 shares+4.1%
Larry StoneDirectorMay 2823,00051,464 shares+80.8%
Edward StackCEOMay 28115,00017,593,829 shares+0.7%

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.

MonthInsider buying / sharesInsider selling / shares
June 20142,5000
May 2014140,3000
April 201400
March 20142,900129,341
February 201400
January 201400
December 201300
November 20131,000157,521
October 201300
September 20130236,886
August 20136,4000
July 201300
June 201300
May 201300
April 201300
March 20131,000444,537
February 201300
January 201300

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

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:

Q2/2014FY2014
Same store sales growth1%-3%1%-3%
Non-GAAP EPS$0.62-$0.67$2.70-$2.85

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.

CompanyDKSHIBBBGFV
Market Cap:5.39B1.37B257.22M
Employees:11,2002,9009,000
Qtrly Rev Growth (yoy):0.080.09-0.06
Revenue:6.32B873.88M978.32M
Gross Margin:0.310.360.33
EBITDA:718.16M131.10M60.33M
Operating Margin:0.090.130.04
Net Income:342.76M73.05M22.49M
EPS:2.742.791.02
P/E:16.2318.9911.45
PEG (5 yr expected):1.181.290.70
P/S:0.851.560.26

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.

CompanyInsider buying / sharesInsider selling / shares
HIBB1,0003,000
BGFV01,600

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.

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