Crocs (NASDAQ:CROX) Trading Down 12.4% – Should You Sell?

Crocs, Inc. (NASDAQ:CROX)’s share price dropped 12.4% during trading on Thursday . The company traded as low as $113.00 and last traded at $116.9450. Approximately 495,045 shares traded hands during mid-day trading, a decline of 59% from the average daily volume of 1,220,165 shares. The stock had previously closed at $133.52.

Crocs News Summary

Here are the key news stories impacting Crocs this week:

• Positive Sentiment: Crocs reported record second-quarter revenue of $1.179 billion, up 2.6% year over year, exceeding the $1.15 billion consensus estimate. Adjusted earnings of $4.55 per share also topped expectations of approximately $4.32-$4.35. Crocs Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management raised its full-year 2026 adjusted EPS outlook to $13.70-$14.00, above the roughly $13.67 analyst consensus, while maintaining revenue expectations for approximately 1%-2% growth. Crocs Reports Record Second Quarter Results
• Positive Sentiment: The company increased its share-repurchase authorization by $1.5 billion, leaving approximately $2.0 billion available for future buybacks. Crocs Brand quarterly revenue also surpassed $1 billion for the first time. Crocs Q2 Revenue and Outlook
• Neutral Sentiment: Trading in CROX was temporarily halted under a Limit Up-Limit Down pause, reflecting heightened volatility around the earnings release.
• Negative Sentiment: Third-quarter guidance called for adjusted EPS of $3.20-$3.30 and revenue of about $996 million, below analyst expectations of $3.55 EPS and approximately $1.0 billion in revenue. The softer near-term outlook was the main reason the earnings beat failed to support the stock. Crocs Shares Sink After Soft Third-Quarter Outlook
• Negative Sentiment: HEYDUDE Brand revenue declined 5.7% to $179 million, highlighting continued weakness outside the core Crocs Brand. Recent insider activity also showed sales and no purchases, though such transactions are secondary to the guidance reaction.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Needham & Company LLC lifted their price target on shares of Crocs from $132.00 to $150.00 and gave the company a “buy” rating in a research report on Friday, July 24th. Barclays boosted their target price on shares of Crocs from $109.00 to $110.00 and gave the stock an “equal weight” rating in a research report on Friday, May 1st. Williams Trading set a $150.00 price target on shares of Crocs in a research report on Tuesday, June 9th. Piper Sandler upgraded Crocs from a “neutral” rating to an “overweight” rating and lifted their price target for the company from $95.00 to $150.00 in a research note on Friday, June 26th. Finally, Wedbush began coverage on Crocs in a report on Monday, June 8th. They set an “outperform” rating for the company. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Crocs presently has an average rating of “Moderate Buy” and an average target price of $128.00.

Crocs Stock Performance

The company has a quick ratio of 1.04, a current ratio of 1.67 and a debt-to-equity ratio of 0.93. The firm has a market cap of $5.97 billion, a PE ratio of -86.76, a PEG ratio of 1.41 and a beta of 1.55. The company has a 50-day simple moving average of $125.21 and a two-hundred day simple moving average of $102.93.

Crocs (NASDAQ:CROX) last posted its earnings results on Thursday, July 30th. The textile maker reported $4.55 earnings per share for the quarter, beating analysts’ consensus estimates of $4.35 by $0.20. Crocs had a positive return on equity of 48.29% and a negative net margin of 2.58%.The business had revenue of $1.18 billion during the quarter, compared to analyst estimates of $1.15 billion. During the same quarter in the previous year, the firm earned ($8.82) EPS. The company’s quarterly revenue was up 2.6% compared to the same quarter last year. Crocs has set its FY 2026 guidance at 13.700-14.000 EPS and its Q3 2026 guidance at 3.200-3.300 EPS. As a group, equities research analysts forecast that Crocs, Inc. will post 13.66 earnings per share for the current year.

Insider Activity

In related news, CEO Andrew Rees sold 32,688 shares of Crocs stock in a transaction on Friday, June 5th. The stock was sold at an average price of $118.09, for a total transaction of $3,860,125.92. Following the completion of the sale, the chief executive officer owned 743,293 shares of the company’s stock, valued at approximately $87,775,470.37. This trade represents a 4.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 3.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Oldfield Partners LLP bought a new stake in Crocs in the 2nd quarter worth $2,449,000. Stonehearth Capital Management LLC bought a new stake in shares of Crocs in the second quarter worth about $201,000. GAMMA Investing LLC increased its holdings in Crocs by 15.1% during the 2nd quarter. GAMMA Investing LLC now owns 2,394 shares of the textile maker’s stock valued at $289,000 after purchasing an additional 314 shares during the period. Pacer Advisors Inc. lifted its holdings in Crocs by 5.7% in the 1st quarter. Pacer Advisors Inc. now owns 339,478 shares of the textile maker’s stock worth $28,183,000 after buying an additional 18,220 shares during the period. Finally, 7G Capital Management LLC bought a new stake in shares of Crocs in the 1st quarter worth approximately $3,445,000. Institutional investors own 93.44% of the company’s stock.

About Crocs

Crocs, Inc is a global footwear designer, developer and distributor best known for its lightweight, proprietary Croslite™ foam-clog construction. The company’s product portfolio encompasses a range of styles, including clogs, sandals, slides, boots and sneakers, all featuring the slip-resistant, odor-resistant and cushion-providing qualities of the Croslite material. Crocs distributes its products through an omnichannel network that includes e-commerce platforms, company-owned retail stores, authorized dealers and wholesale partners.

Founded in 2002 by Scott Seamans, Lyndon “Duke” Hanson and George Boedecker Jr., Crocs launched its first clog on the island of Vail, Colorado.