Academy Sports and Outdoors Inc. [NASDAQ: ASO] loss -0.43% or -0.18 points to close at $42.11 with a heavy trading volume of 2127785 shares. The company report on September 15, 2021 that Academy Sports + Outdoors Announces Pricing of Secondary Offering of Common Stock and Concurrent Share Repurchase.
Academy Sports and Outdoors, Inc. (“Academy” or the “Company”) (NASDAQ: ASO) announced the pricing of the previously announced underwritten secondary offering by certain of its stockholders that are affiliates of Kohlberg Kravis Roberts & Co. L.P. (the “Selling Stockholders”), of 18,645,602 shares of common stock of Academy at the public offering price of $44.75 per share, pursuant to a registration statement filed by the Company with the U.S. Securities and Exchange Commission (the “SEC”). No shares are being sold by Academy. The Selling Stockholders will receive all of the proceeds from this offering.
Academy announced that, subject to the completion of the offering, it intends to repurchase 4,500,000 shares out of the 18,645,602 shares of common stock from the Selling Stockholders at a price per share of approximately $43.52, which is equal to the price at which the underwriters will purchase the shares from the Selling Stockholders, for an aggregate purchase price of approximately $200 million. Any shares repurchased by Academy will be pursuant to its recently announced $500 million share repurchase program and will be retired. The closing of the share repurchase is conditioned on, and expected to occur simultaneously with, the closing of the offering, subject to the satisfaction of other customary conditions. The offering is expected to close on September 17, 2021, subject to customary closing conditions. The offering is not conditioned upon the completion of the share repurchase.
It opened the trading session at $42.00, the shares rose to $42.85 and dropped to $41.56, the range by which the price of stock traded the whole day. The daily chart for ASO points out that the company has recorded 70.83% gains over the past six months. However, it is still -249.46% lower than its most recent low trading price.
If we look at the average trading volume of 2.50M shares, ASO reached to a volume of 2127785 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Academy Sports and Outdoors Inc. [ASO]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ASO shares is $47.88 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ASO stock is a recommendation set at 1.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
UBS have made an estimate for Academy Sports and Outdoors Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on September 10, 2021. While these analysts kept the previous recommendation, JP Morgan raised their target price from $50 to $55. The new note on the price target was released on September 10, 2021, representing the official price target for Academy Sports and Outdoors Inc. stock. Previously, the target price had yet another raise from $45 to $52, while Guggenheim kept a Buy rating on ASO stock. On September 10, 2021, analysts increased their price target for ASO shares from 44 to 53.
The Average True Range (ATR) for Academy Sports and Outdoors Inc. is set at 1.88, with the Price to Sales ratio for ASO stock in the period of the last 12 months amounting to 0.63. The Price to Book ratio for the last quarter was 2.69, with the Price to Cash per share for the same quarter was set at 5.90. Price to Free Cash Flow for ASO in the course of the last twelve months was 6.79 with Quick ratio for the last quarter at 0.50.
Trading performance analysis for ASO stock
Academy Sports and Outdoors Inc. [ASO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.60. With this latest performance, ASO shares gained by 0.05% in over the last four-week period, additionally plugging by 70.83% over the last 6 months.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ASO stock in for the last two-week period is set at 47.89, with the RSI for the last a single of trading hit 39.59, and the three-weeks RSI is set at 51.48 for Academy Sports and Outdoors Inc. [ASO]. The present Moving Average for the last 50 days of trading for this stock 39.78, while it was recorded at 42.56 for the last single week of trading, and 31.79 for the last 200 days.
Academy Sports and Outdoors Inc. [ASO]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Academy Sports and Outdoors Inc. [ASO] shares currently have an operating margin of +7.80 and a Gross Margin at +28.63. Academy Sports and Outdoors Inc.’s Net Margin is presently recorded at +5.43.
Return on Total Capital for ASO is now 13.05, given the latest momentum, and Return on Invested Capital for the company is 9.35. Return on Equity for this stock inclined to 29.36, with Return on Assets sitting at 7.09. When it comes to the capital structure of this company, Academy Sports and Outdoors Inc. [ASO] has a Total Debt to Total Equity ratio set at 181.29. Additionally, ASO Total Debt to Total Capital is recorded at 64.45, with Total Debt to Total Assets ending up at 45.98. Long-Term Debt to Equity for the company is recorded at 173.71, with the Long-Term Debt to Total Capital now at 61.75.
Reflecting on the efficiency of the workforce at the company, Academy Sports and Outdoors Inc. [ASO] managed to generate an average of $14,035 per employee. Receivables Turnover for the company is 363.47 with a Total Asset Turnover recorded at a value of 1.31.Academy Sports and Outdoors Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.50 and a Current Ratio set at 1.50.
Academy Sports and Outdoors Inc. [ASO]: An earnings per share (EPS) analysis
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ASO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Academy Sports and Outdoors Inc. go to 41.90%.
An analysis of insider ownership at Academy Sports and Outdoors Inc. [ASO]
There are presently around $3,801 million, or 97.30% of ASO stock, in the hands of institutional investors. The top three institutional holders of ASO stocks are: KOHLBERG KRAVIS ROBERTS & CO. L.P. with ownership of 28,745,602, which is approximately -42.092% of the company’s market cap and around 1.30% of the total institutional ownership; FMR LLC, holding 11,277,844 shares of the stock with an approximate value of $474.91 million in ASO stocks shares; and VANGUARD GROUP INC, currently with $244.57 million in ASO stock with ownership of nearly 109.842% of the company’s market capitalization.
Positions in Academy Sports and Outdoors Inc. stocks held by institutional investors increased at the end of September and at the time of the September reporting period, where 167 institutional holders increased their position in Academy Sports and Outdoors Inc. [NASDAQ:ASO] by around 33,205,084 shares. Additionally, 78 investors decreased positions by around 29,640,626 shares, while 6 investors held positions by with 27,409,392 shares. The mentioned changes placed institutional holdings at 90,255,102 shares, according to the latest SEC report filing. ASO stock had 96 new institutional investments in for a total of 10,652,385 shares, while 32 institutional investors sold positions of 5,060,031 shares during the same period.