Let’s reassess the active stocks with an eye toward JWN stock. Just how should we respond to Thursday’s drubbing? Is the mighty fruit now destined to decay? Or is this a mere bruising and nothing more? On 03 January, shares of Nordstrom, Inc. (NYSE:JWN) closed lower after a volatile session. The shares dropped -0.48 points or -1.01 percent at $47 with a heavy trade volume of 2.915 million shares. After opening the session at $47.24, the shares went as high as $48.11 and as low as $46.59, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $7.89 billion and now has 167.82 million shares outstanding. Nordstrom, Inc. (JWN) stock has lost -11.1 percent of market value in 21 trading days.
JWN stock has a trailing 3-year beta of 0.71, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.96 a share in the trailing twelve months. The stock’s value has surged 0.84 percent year to date (YTD) against a decline of -4.32 percent in 12 month’s time. The company’s shares still trade -30.62 percent away from its 1-year high of $67.75 and 7.55 percent up from 52-week low of $43.70. The average consensus rating on the company is 2.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
Nordstrom, Inc. (JWN) will probably climb 27.91 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $75 price as 12price as 12-month high target. This represents a whopping 59.57 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $56, which represents a return potential of 19.15 percent when compared to the closing price of the stock of $47 on Thursday, January 03. The lowest price target for the stock is $47 — slightly more than 0 percent from JWN’s current share price.
History has shown that shares in Nordstrom, Inc. have gone down on 20 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings.
Let’s take a look at some insider activity at Nordstrom, Inc. (NYSE:JWN) and see the pattern. The earliest insider trade took place on 10/10/2018. Sari Robert parted with a total of 8.8 thousand shares of company at average share price of $62.5. The total for the sales was set at $549.69 thousand. After this transaction, the Senior VP and Secretary account balance stood at 14.46 thousand shares. The stock lost -24.02 percent since that insider sale. On 09/20/2018, Nordstrom Blake W, Co-President, sold 127.25 thousand shares at a price per share of $61.51. This removed 7.83 million shares from the insider’s fortune and the stock saw a -22.79 percent retreat in value since the news became public. This transaction left 2.86 million shares in the Co-President account.
On 09/20/2018, Co-President Nordstrom Blake W performed a sale transaction worth $7.83 million. This sale at $61.51 each has eliminated 127.25 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -22.79 percent decrease since the transaction was reported. The insider now is left with 2.9 million shares remaining in the account. Worzel Ken, who performs the Chief Digital Officer job, sold 75.8 thousand shares for $4.99 million. The disposal occurred on 09/10/2018 was priced at $65.87 per share. The share price plunged -27.9 percent since the reporting date. Worzel Ken now left with a stake of 110.74 thousand JWN stock worth $5.2 million after the insider selling.
The stock is currently hovering around the first support level of $46.36. Below this, the next support is placed in the zone of $45.71. Till the time, the JWN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 37.5 on daily chart, which may remain a cause for comfort. If the price breaks below $45.71 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $47.88 mark may result into a pull-back move towards $48.75 level.
Shares of Nordstrom, Inc. (JWN) are trading at a P/E ratio of 17.71 times earnings reported for the past 12 months. The industry JWN operates in has an average P/E of 65.3. Its P/E ratio went as low as 14.45X and as high as 21.25 over the 5-year span.Further, it is sporting a 0.49 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.67. 36.1 percent is the gross profit margin for Nordstrom, Inc. and operating margin sits at 5.3 percent. Along with this, the net profit margin is 2.9 percent.