HSN Rating Increased to Buy at Citigroup Inc. (HSNI)
HSN (NASDAQ:HSNI) was upgraded by investment analysts at Citigroup Inc. from a “neutral” rating to a “buy” rating in a note issued to investors on Thursday, TheFlyOnTheWall.com reports. The firm currently has a $67.00 price target on the stock, up from their previous price target of $59.00. Citigroup Inc.’s price objective indicates a potential upside of 25.07% from the stock’s previous close.
The analysts wrote, “We’re upgrading HSNI from Neutral to Buy and raising our price target from $59 to $67. Our new price target ascribes a 15.5x 2015 EPS ($64 per share) plus the value of HSN’s cash ($3 per share). Yesterday, Liberty announced it was issuing $350 million in debt that yields a 1% cash coupon plus the option to convert into HSN’s equity at $74.31 per share until 2043. This relatively low conversion price – which assumes just a 1% CAGR in HSN’s share price over the next 30 years – has led many investors to assume Liberty finds HSN’s equity unattractive at current levels. We come to the opposite conclusion. After a year of underperformance (HSN is down 3% this year versus 16% appreciation in the SP500 and 18% appreciation at LINTA), HSN’s equity is more compelling today than it’s been in quite some time.”
Shares of HSN (NASDAQ:HSNI) traded up 0.81% on Thursday, hitting $54.005. The stock had a trading volume of 126,371 shares. HSN has a 1-year low of $45.39 and a 1-year high of $65.00. The stock’s 50-day moving average is $58.6 and its 200-day moving average is $55.67. The company has a market cap of $2.874 billion and a price-to-earnings ratio of 20.15.
HSN (NASDAQ:HSNI) last announced its earnings results on Thursday, August 1st. The company reported $0.79 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.73 by $0.06. The company had revenue of $812.60 million for the quarter, compared to the consensus estimate of $805.11 million. During the same quarter in the previous year, the company posted $0.61 earnings per share. The company’s revenue for the quarter was up 5.9% on a year-over-year basis. On average, analysts predict that HSN will post $3.12 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on HSNI. Analysts at Wunderlich upgraded shares of HSN (NASDAQ:HSNI) from a “hold” rating to a “buy” rating in a research note to investors on Friday, August 2nd. They now have a $75.00 price target on the stock, up previously from $63.00. Finally, analysts at Sidoti upgraded shares of HSN (NASDAQ:HSNI) from a “neutral” rating to a “buy” rating in a research note to investors on Tuesday, July 23rd.
One analyst has rated the stock with a hold rating and four have assigned a buy rating to the company. HSN presently has an average rating of “Buy” and a consensus price target of $70.25.
The company also recently declared a quarterly dividend, which is scheduled for Wednesday, September 18th. Investors of record on Wednesday, September 4th will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 1.34%. The ex-dividend date of this dividend is Friday, August 30th.
In other HSN news, CEO Mindy Grossman sold 11,000 shares of the stock in a transaction that occurred on Thursday, August 22nd. The shares were sold at an average price of $56.77, for a total transaction of $624,470.00. Following the completion of the sale, the chief executive officer now directly owns 128,863 shares in the company. The sale was disclosed in a document filed with the SEC, which can be accessed through this link.
HSN, Inc (NASDAQ:HSNI) is an interactive multichannel retailer.
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