HHGregg Downgraded to Underperform at Zacks (HGG)
HHGregg (NYSE:HGG) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a note issued to investors on Friday, American Banking & Market News reports. They currently have a $7.00 price objective on the stock. Zacks‘ price target suggests a potential downside of 8.97% from the company’s current price.
Zacks‘ analyst wrote, “We are downgrading our recommendation on hhgregg to Underperform from Neutral after the company posted weak third quarter fiscal 2014 results, missing the Zacks Consensus Estimate for both earnings and revenues. Earnings of $0.17 per share declined 67.3% on a year-over-year basis due to a decline in comps, lower gross margins and higher SG&A ratio. Net sales declined 11.6% due to a decline in comps and poor weather in December. Comps declined in the consumer electronics and computing and wireless categories due to a weak retail sales environment owing to low consumer confidence. A weak holiday season also hit sales, impacted by the highly competitive environment and significant promotional pressures. Following weak third quarter results, hhgregg lowered its top and bottom line guidance for fiscal 2014. The company also lowered its comp sales guidance for fiscal 2014′ thus raising concerns.”
A number of other analysts have also recently weighed in on HGG. Analysts at UBS AG cut their price target on shares of HHGregg from $13.00 to $9.00 in a research note to investors on Friday, January 31st. They now have a “neutral” rating on the stock. Separately, analysts at Jefferies Group cut their price target on shares of HHGregg from $12.00 to $9.00 in a research note to investors on Friday, January 31st. Finally, analysts at Standpoint Research upgraded shares of HHGregg from a “hold” rating to a “buy” rating in a research note to investors on Friday, January 24th. They now have a $16.00 price target on the stock. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating and one has assigned a buy rating to the stock. HHGregg currently has an average rating of “Hold” and a consensus target price of $11.25.
Shares of HHGregg (NYSE:HGG) traded up 1.43% on Friday, hitting $7.80. 612,219 shares of the company’s stock traded hands. HHGregg has a 52-week low of $7.23 and a 52-week high of $20.75. The stock has a 50-day moving average of $11.50 and a 200-day moving average of $15.65. The company has a market cap of $230.0 million and a price-to-earnings ratio of 13.81.
HHGregg (NYSE:HGG) last announced its earnings results on Friday, January 31st. The company reported $0.17 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.28 by $0.11. The company had revenue of $707.10 million for the quarter, compared to the consensus estimate of $774.60 million. Analysts expect that HHGregg will post $0.35 EPS for the current fiscal year.
hhgregg, Inc (NYSE:HGG) is a specialty retailer of home appliances, televisions, computers, consumer electronics, mattresses and related services operating under the name hhgregg.
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