Nordstrom Inc. (NYSE:JWN) shares traded higher over the last trading session, gaining 2.68% on 12/03/20. The shares fell to a low of $28.92 before closing at $29.52. Intraday shares traded counted 10.15 million, which was 9.27% higher than its 30-day average trading volume of 11.19M. JWN’s previous close was $28.75 while the outstanding shares total 157.20M. The firm has a beta of 2.55. The stock’s Relative Strength Index (RSI) is 81.24, with weekly volatility at 6.42% and ATR at 1.77. The JWN stock’s 52-week price range has touched low of $11.72 and a $43.37 high.
Investors have identified the Department Stores company Nordstrom Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $4.76 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Nordstrom Inc. (JWN) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For JWN, the company has in raw cash 991.0 million on their books with 500.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 3405000000 million total, with 3642000000 million as their total liabilities.
JWN were able to record -819.0 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 138.0 million. In cash movements, the company had a total of -591.0 million as operating cash flow.
Potential earnings growth for Nordstrom Inc. (JWN)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Nordstrom Inc. recorded a total of 1.86 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -107.95% coming in sequential stages and their sales for the third quarter reducing by -13.8%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.41 billion trying to sell their products during the last quarter, with the result yielding a gross income of 456.0 million. This allows shareholders to hold on to 157.20M with the revenue now reading -1.62 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.01 cents a share).
Having a look at the company’s valuation, the company is expected to record 3.37 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on JWN sounds very interesting.
Is the stock of JWN attractive?
In related news, Chief Executive Officer, NORDSTROM ERIK B sold 16,486 shares of the company’s stock in a transaction that recorded on Mar 11. The sale was performed at an average price of 24.42, for a total value of 402,506. As the sale deal closes, the Pres. & Chief Brand Officer, NORDSTROM PETER E now sold 18,030 shares of the company’s stock, valued at 440,202. Also, Chief Financial Officer, BRAMMAN ANNE L sold 3,333 shares of the company’s stock in a deal that was recorded on Jan 08. The shares were price at an average price of 42.25 per share, with a total market value of 140,819. Following this completion of acquisition, the Co-President, NORDSTROM ERIK B now holds 77,609 shares of the company’s stock, valued at 3,330,730. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.