Academy Sports and Outdoors (NASDAQ:ASO) Shares Gap Up on Strong Earnings

Academy Sports and Outdoors, Inc. (NASDAQ:ASO)’s share price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $44.71, but opened at $47.74. Academy Sports and Outdoors shares last traded at $49.1390, with a volume of 942,555 shares trading hands.

The company reported $2.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.07 by $0.24. The business had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.65 billion. Academy Sports and Outdoors had a net margin of 6.24% and a return on equity of 17.85%. The company’s revenue for the quarter was up 3.0% compared to the same quarter last year. During the same quarter last year, the business earned $1.94 earnings per share. Academy Sports and Outdoors has set its FY 2026 guidance at 6.500-6.900 EPS.

Academy Sports and Outdoors Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 16th will be issued a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 1.2%. The ex-dividend date is Wednesday, September 16th. Academy Sports and Outdoors’s payout ratio is presently 10.56%.

Analyst Upgrades and Downgrades

ASO has been the subject of a number of research analyst reports. Wells Fargo & Company reissued a “hold” rating on shares of Academy Sports and Outdoors in a report on Wednesday, June 10th. Telsey Advisory Group dropped their price target on Academy Sports and Outdoors from $65.00 to $60.00 and set an “outperform” rating for the company in a research report on Wednesday, September 2nd. JPMorgan Chase & Co. decreased their price objective on Academy Sports and Outdoors from $60.00 to $59.00 and set a “neutral” rating on the stock in a report on Wednesday, June 10th. Stephens assumed coverage on shares of Academy Sports and Outdoors in a research note on Wednesday, May 13th. They set an “overweight” rating and a $78.00 target price on the stock. Finally, UBS Group reiterated a “neutral” rating on shares of Academy Sports and Outdoors in a research report on Wednesday, September 2nd. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Academy Sports and Outdoors has an average rating of “Hold” and a consensus target price of $57.14.

Hedge Funds Weigh In On Academy Sports and Outdoors

A number of institutional investors have recently added to or reduced their stakes in the stock. WINTON GROUP Ltd boosted its stake in Academy Sports and Outdoors by 36.7% during the second quarter. WINTON GROUP Ltd now owns 34,477 shares of the company’s stock worth $1,625,000 after buying an additional 9,261 shares during the last quarter. Engineers Gate Manager LP purchased a new position in shares of Academy Sports and Outdoors during the 2nd quarter worth $1,332,000. Integrated Wealth Concepts LLC acquired a new position in shares of Academy Sports and Outdoors during the 2nd quarter valued at about $104,000. Baird Financial Group Inc. boosted its position in shares of Academy Sports and Outdoors by 4.9% during the 2nd quarter. Baird Financial Group Inc. now owns 274,145 shares of the company’s stock valued at $12,920,000 after acquiring an additional 12,756 shares during the last quarter. Finally, Nykredit A S purchased a new stake in shares of Academy Sports and Outdoors in the second quarter valued at about $119,000.

Academy Sports and Outdoors Price Performance

The stock has a market cap of $3.03 billion, a PE ratio of 8.63, a price-to-earnings-growth ratio of 0.66 and a beta of 1.02. The stock’s fifty day moving average is $46.75 and its 200-day moving average is $51.71. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.68 and a quick ratio of 0.36.

Academy Sports and Outdoors Company Profile

Academy Sports and Outdoors is a leading specialty retailer of sporting goods and outdoor gear, operating more than 260 stores across the United States. Headquartered in Katy, Texas, the company offers a broad assortment of merchandise spanning athletic footwear and apparel, team sports equipment, camping and outdoor recreation products, hunting and fishing supplies, and fitness accessories. In addition to its brick-and-mortar footprint, Academy serves customers through its e-commerce platform, offering online ordering, in-store pickup, and home delivery options.

The company’s product portfolio includes seasonal and year-round categories designed to meet the needs of both casual enthusiasts and serious athletes.