Cabela’s Inc (CAB) Downgraded by Zacks Investment Research to Hold
According to Zacks, “Cabela's accepted the buyout offer of Bass Pro Shops in all-cash deal valued at $5.5 billion. However, the Federal regulators have raised questions over the deal. As a result the stock has come under pressure lately, and has underperformed the industry in the past three months. Soft economic recovery, deceleration in the sale of sporting goods and stiff competition from both brick & mortar and e-commerce have made things tough for Cabela’s. Moreover, the company’s expansion in the geographies where it already serves has boomeranged, thus cannibalizing sales and leading to lower traffic count at existing stores. The acquisition will result in a giant that will control over 20% of the U.S. hunting, camping, and fishing market. The deal will help the combined entity to generate significant revenue and cost savings. Analysts believe that the stock may sink further if the completion of the deal is delayed.”
CAB has been the subject of a number of other research reports. Vetr upgraded Cabela’s from a strong sell rating to a sell rating and set a $55.90 price target for the company in a research note on Monday, December 19th. Forward View reiterated a buy rating and set a $65.50 price target on shares of Cabela’s in a research note on Thursday, October 20th. Finally, Stifel Nicolaus cut their price target on Cabela’s from $65.50 to $51.00 and set a hold rating for the company in a research note on Wednesday. One equities research analyst has rated the stock with a sell rating, eleven have assigned a hold rating and one has given a buy rating to the company’s stock. The stock has a consensus rating of Hold and a consensus target price of $56.63.
Shares of Cabela’s (NYSE:CAB) traded down 5.01% during mid-day trading on Thursday, hitting $46.11. The stock had a trading volume of 1,245,979 shares. The firm’s 50 day moving average price is $55.81 and its 200 day moving average price is $56.84. Cabela’s has a 1-year low of $41.44 and a 1-year high of $63.60. The company has a market cap of $3.16 billion, a P/E ratio of 18.91 and a beta of 0.66.
Cabela’s (NYSE:CAB) last issued its earnings results on Thursday, February 16th. The company reported $1.05 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $1.22 by $0.17. The firm earned $1.34 billion during the quarter, compared to analyst estimates of $1.44 billion. Cabela’s had a net margin of 3.99% and a return on equity of 10.23%. The business’s quarterly revenue was down 4.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.26 earnings per share. Analysts predict that Cabela’s will post $2.85 earnings per share for the current fiscal year.
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Institutional investors have recently bought and sold shares of the company. CNH Partners LLC purchased a new position in Cabela’s during the fourth quarter valued at approximately $115,322,000. Westchester Capital Management LLC purchased a new position in Cabela’s during the fourth quarter valued at approximately $105,028,000. Alpine Associates Management Inc. purchased a new position in Cabela’s during the fourth quarter valued at approximately $68,679,000. HG Vora Capital Management LLC boosted its position in Cabela’s by 157.4% in the third quarter. HG Vora Capital Management LLC now owns 1,300,000 shares of the company’s stock valued at $71,409,000 after buying an additional 795,000 shares in the last quarter. Finally, Pentwater Capital Management LP purchased a new position in Cabela’s during the second quarter valued at approximately $31,037,000. 72.34% of the stock is currently owned by hedge funds and other institutional investors.
Cabela’s Incorporated is a specialty retailer and a direct marketer of hunting, fishing, camping and related outdoor merchandise. The Company offers national and regional brand products, including its Cabela’s brand. The Company’s segments include Retail, Direct, Financial Services, and Corporate Overhead and Other.
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