Four directors of Dick’s Sporting Goods bought stock in the sporting-goods and footwear chain last week after the company’s disappointing earnings and financial guidance led to a 30% drop in the stock price.

Dick’s shares fell 30% last Tuesday to $124, their lowest level since 2023 and about half of their 52-week high of $244 set in June.

The four directors, including BJ’s Wholesale Club CEO Robert Eddy, bought a total of $3.7 million of stock last Wednesday and Thursday, according to form 4 filings with the Securities and Exchange Commission filed late Friday. The purchases were made at prices ranging from about $129 to $131.

Several analysts termed the stock plunge an overreaction, including Morgan Stanley’s Simeon Gutman, who maintained a Buy rating while cutting his price target to $180 from $270 a share.

Gutman’s view is that Dick’s is too cheap given that its core annual earnings power, excluding Foot Locker, is about $12 a share and the stock traded just above 10 times that profit level last week. “This ~10x multiple is too punitive for the Core Dick’s franchise, in our view, which is well positioned to recover its operating margin once the current promotional period abates,” he wrote in a client note last week.

stocks.apple.com: Dick’s Sporting Goods Directors Buy $3.7 Million of Stock After Shares Plunge