Xcel Brands, Inc (NASDAQ:XELB) Sees Large Drop in Short Interest

Xcel Brands, Inc (NASDAQ:XELB) was the recipient of a significant decline in short interest in May. As of May 15th, there was short interest totaling 24,695 shares, a decline of 48.2% from the April 30th total of 47,714 shares. Based on an average daily volume of 16,366 shares, the days-to-cover ratio is presently 1.5 days. Currently, 0.6% of the company’s stock are sold short.

Xcel Brands Stock Down 6.7%

Shares of NASDAQ XELB traded down $0.16 during mid-day trading on Wednesday, reaching $2.16. 8,418 shares of the company traded hands, compared to its average volume of 36,207. The company’s fifty day moving average is $1.92 and its two-hundred day moving average is $1.54. The company has a debt-to-equity ratio of 0.75, a quick ratio of 0.58 and a current ratio of 0.58. Xcel Brands has a fifty-two week low of $0.74 and a fifty-two week high of $2.66. The stock has a market cap of $13.04 million, a PE ratio of -0.46 and a beta of 1.18.

Xcel Brands (NASDAQ:XELB) last announced its quarterly earnings results on Thursday, May 14th. The textile maker reported ($0.42) EPS for the quarter, beating the consensus estimate of ($0.64) by $0.22. The company had revenue of $1.14 million for the quarter, compared to the consensus estimate of $1.65 million. Xcel Brands had a negative return on equity of 83.71% and a negative net margin of 361.04%. On average, analysts expect that Xcel Brands will post -1.34 earnings per share for the current year.

Institutional Investors Weigh In On Xcel Brands

Hedge funds have recently bought and sold shares of the company. Potomac Capital Management Inc. bought a new position in shares of Xcel Brands in the fourth quarter worth about $441,000. Citadel Advisors LLC bought a new stake in Xcel Brands during the 3rd quarter valued at approximately $88,000. Finally, DRW Securities LLC grew its holdings in Xcel Brands by 98.1% in the 4th quarter. DRW Securities LLC now owns 34,434 shares of the textile maker’s stock valued at $37,000 after buying an additional 17,053 shares during the last quarter. 18.55% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Separately, Weiss Ratings raised Xcel Brands from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, May 13th. One analyst has rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat, Xcel Brands has an average rating of “Hold” and a consensus price target of $3.00.

About Xcel Brands

Xcel Brands, Inc (NASDAQ: XELB) is a lifestyle brand management company that acquires, develops and markets consumer product brands spanning fashion, entertainment and home categories. The company works with designers, celebrities and entertainment properties to create branded apparel, accessories, jewelry and home décor collections. Its portfolio includes licensed and proprietary brands such as Judith Ripka, Isaac Mizrahi and Simple Joys by Carter’s, among others.

The company’s business model centers on sourcing creative talent and intellectual property, then leveraging an in-house product development team to design collections that are manufactured by third-party partners.