Skechers USA (SKX) Lifted to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Skechers USA (NYSE:SKX) from a hold rating to a buy rating in a report issued on Wednesday. Zacks Investment Research currently has $32.00 price target on the textile maker’s stock.
According to Zacks, “Greater emphasis on new line of products, cost containment efforts, inventory management and global distribution platform have been aiding Skechers. The company reversed the preceding quarter’s earnings miss with a beat in the third quarter of 2018. Management also provided an upbeat view for the final quarter, despite the year-over-year earnings decline and top-line miss. The sluggish domestic wholesale business performance was compensated by double-digit increase in both international wholesale and global company-owned retail businesses. Skechers’ domestic e-commerce business also continues to gain traction. Management now expects both the top and bottom lines to increase year over year during the final quarter. However, higher general & administrative expenses remain a concern. Although, the stock has declined in the past three months, we expect the aforementioned drivers to help it revive in the near-term.”
Several other research analysts have also commented on SKX. ValuEngine lowered Skechers USA from a hold rating to a sell rating in a research report on Tuesday, November 20th. TheStreet lowered Skechers USA from a b- rating to a c+ rating in a research report on Wednesday, August 15th. B. Riley set a $45.00 target price on Skechers USA and gave the company a buy rating in a research report on Friday, October 19th. OTR Global lowered Skechers USA to a positive rating in a research report on Tuesday, October 9th. Finally, Wells Fargo & Co set a $30.00 target price on Skechers USA and gave the company a hold rating in a research report on Friday, October 19th. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and six have given a buy rating to the stock. The company has a consensus rating of Hold and an average target price of $32.49.
Skechers USA (NYSE:SKX) last released its quarterly earnings results on Thursday, October 18th. The textile maker reported $0.58 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.51 by $0.07. The company had revenue of $1.18 billion during the quarter, compared to analyst estimates of $1.22 billion. Skechers USA had a return on equity of 13.81% and a net margin of 4.13%. The firm’s revenue was up 7.5% on a year-over-year basis. During the same quarter last year, the business posted $0.59 earnings per share. Analysts anticipate that Skechers USA will post 1.85 earnings per share for the current year.
In related news, President Michael Greenberg sold 75,630 shares of the business’s stock in a transaction that occurred on Friday, November 2nd. The shares were sold at an average price of $29.28, for a total value of $2,214,446.40. Following the completion of the transaction, the president now owns 593,309 shares of the company’s stock, valued at $17,372,087.52. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 27.88% of the stock is currently owned by insiders.
A number of large investors have recently modified their holdings of SKX. Bank of New York Mellon Corp increased its position in shares of Skechers USA by 335.3% during the third quarter. Bank of New York Mellon Corp now owns 6,604,345 shares of the textile maker’s stock worth $184,459,000 after purchasing an additional 5,087,296 shares in the last quarter. Alliancebernstein L.P. increased its position in shares of Skechers USA by 3,516.2% during the third quarter. Alliancebernstein L.P. now owns 2,903,543 shares of the textile maker’s stock worth $81,096,000 after purchasing an additional 2,823,250 shares in the last quarter. Point72 Asset Management L.P. purchased a new stake in shares of Skechers USA during the second quarter valued at $35,425,000. Voya Investment Management LLC grew its holdings in shares of Skechers USA by 2,317.4% during the second quarter. Voya Investment Management LLC now owns 970,828 shares of the textile maker’s stock valued at $29,135,000 after buying an additional 930,668 shares during the last quarter. Finally, AQR Capital Management LLC grew its holdings in shares of Skechers USA by 20.8% during the third quarter. AQR Capital Management LLC now owns 5,280,391 shares of the textile maker’s stock valued at $147,481,000 after buying an additional 908,258 shares during the last quarter. 74.28% of the stock is owned by institutional investors.
About Skechers USA
Skechers U.SA, Inc designs, develops, markets, and distributes footwear for men, women, and children; and performance footwear for men and women under the Skechers GO brand worldwide. It operates through three segments: Domestic Wholesale Sales, International Wholesale Sales, and Retail Sales. The company offers casual boots, shoes, and sandals for men; shoes, oxfords and slip-ons, lug outsole and fashion boots, and casual sandals for women; dress casuals, seasonal sandals and boots, classic and wide fit, and relaxed fit casuals for men and women; and casual athletic line for men and women under the Skechers USA brand.
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