Skechers U.S.A., Inc. (SKX) Rating Lowered to Sell at Zacks Investment Research
Zacks Investment Research cut shares of Skechers U.S.A., Inc. (NYSE:SKX) from a hold rating to a sell rating in a report published on Thursday morning.
According to Zacks, “After posting earnings beat in first-quarter 2017, Skechers succumbed to a negative earnings surprise in the second quarter. Although the company's top line improved, it failed to act as a savior for the bottom line that fell 20.8% due to increased operating expenses and higher effective tax rate. Investors remain apprehensive about Skechers’ bottom line that has been declining for five straight quarters and also missed the Zacks Consensus Estimate four times in the said period. Further, soft third quarter earnings projection also raises concern. On the contrary, net sales beat the consensus mark for the third quarter in row and management also provided an encouraging outlook for the same. We believe greater emphasis on new line of products, cost containment efforts, inventory management and global distribution platform may help lift the stock’s performance that has underperformed the industry in the past one month.”
Several other equities research analysts have also recently issued reports on the stock. Vetr upgraded shares of Skechers U.S.A. from a hold rating to a buy rating and set a $26.28 price objective on the stock in a research report on Wednesday, May 3rd. Citigroup Inc. upgraded shares of Skechers U.S.A. from a neutral rating to a buy rating and lifted their price objective for the company from $25.52 to $30.00 in a research report on Thursday, June 1st. Susquehanna Bancshares Inc reiterated a neutral rating and set a $25.00 price objective on shares of Skechers U.S.A. in a research report on Monday, April 24th. Cowen and Company reiterated a buy rating and set a $35.00 price objective on shares of Skechers U.S.A. in a research report on Friday, April 21st. Finally, BidaskClub upgraded shares of Skechers U.S.A. from a hold rating to a buy rating in a research report on Friday, June 30th. Two analysts have rated the stock with a sell rating, five have assigned a hold rating and ten have issued a buy rating to the company. The company presently has a consensus rating of Hold and a consensus target price of $31.10.
Skechers U.S.A. (SKX) traded down 1.89% during trading on Thursday, reaching $27.97. 386,479 shares of the company’s stock were exchanged. The company has a market cap of $4.35 billion, a P/E ratio of 19.40 and a beta of 0.18. Skechers U.S.A. has a 12-month low of $18.81 and a 12-month high of $30.00. The stock’s 50-day moving average is $28.37 and its 200-day moving average is $26.29.
Skechers U.S.A. (NYSE:SKX) last released its quarterly earnings data on Thursday, July 20th. The textile maker reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.44 by $0.06. The company had revenue of $1.03 billion for the quarter, compared to the consensus estimate of $966.46 million. Skechers U.S.A. had a net margin of 5.92% and a return on equity of 12.79%. The company’s quarterly revenue was up 16.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.48 EPS. Analysts predict that Skechers U.S.A. will post $1.58 EPS for the current fiscal year.
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In other Skechers U.S.A. news, COO David Weinberg sold 23,502 shares of Skechers U.S.A. stock in a transaction on Tuesday, May 2nd. The shares were sold at an average price of $25.08, for a total transaction of $589,430.16. Following the completion of the transaction, the chief operating officer now directly owns 193,502 shares of the company’s stock, valued at $4,853,030.16. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Richard Rappaport sold 1,500 shares of Skechers U.S.A. stock in a transaction on Friday, June 23rd. The stock was sold at an average price of $28.38, for a total transaction of $42,570.00. Following the transaction, the director now directly owns 20,000 shares of the company’s stock, valued at $567,600. The disclosure for this sale can be found here. 38.20% of the stock is owned by insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Janney Montgomery Scott LLC raised its position in Skechers U.S.A. by 725.4% in the first quarter. Janney Montgomery Scott LLC now owns 121,019 shares of the textile maker’s stock valued at $3,322,000 after buying an additional 106,357 shares during the last quarter. Profund Advisors LLC raised its position in Skechers U.S.A. by 3.5% in the first quarter. Profund Advisors LLC now owns 18,533 shares of the textile maker’s stock valued at $509,000 after buying an additional 622 shares during the last quarter. Nationwide Fund Advisors raised its position in Skechers U.S.A. by 0.7% in the first quarter. Nationwide Fund Advisors now owns 223,345 shares of the textile maker’s stock valued at $6,131,000 after buying an additional 1,626 shares during the last quarter. Retirement Systems of Alabama raised its position in Skechers U.S.A. by 0.3% in the first quarter. Retirement Systems of Alabama now owns 172,700 shares of the textile maker’s stock valued at $4,741,000 after buying an additional 523 shares during the last quarter. Finally, Capital Impact Advisors LLC raised its position in Skechers U.S.A. by 15.3% in the first quarter. Capital Impact Advisors LLC now owns 55,204 shares of the textile maker’s stock valued at $1,515,000 after buying an additional 7,308 shares during the last quarter. 65.00% of the stock is owned by institutional investors.
Skechers U.S.A. Company Profile
Skechers U.SA, Inc is a designer and marketer of Skechers-branded lifestyle footwear for men, women and children, and performance footwear for men and women under the Skechers GO brand name. The Company operates through three segments: domestic wholesale sales, international wholesale sales, and retail sales, which includes e-commerce sales.
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