Cabela’s Inc. (CAB) Lifted to “Hold” at Zacks Investment Research
Cabela’s Inc. (NYSE:CAB) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Monday.
According to Zacks, “Cabela’s multi-channel model, next-generation stores and cost-saving initiatives continue to bode well. The cost-saving endeavors include an improvement in IT process, optimum utilization of retail labor, indirect procurement, merchandise sourcing along with retail support functions and supply chain efficiencies. Management envisions 2016 earnings per share to grow in the range of high-single-digits or low-double-digits in comparison with adjusted earnings per share of $2.88 in 2015. However, stiff competition and cannibalization remain threats, as these may dent results. Cabela’s succumbed to a negative earnings surprise in the second quarter, after delivering back to back earnings beat, with the merchandise gross margin contracting year over year – partly accountable to softness in the apparel category.”
Several other equities analysts have also recently issued reports on CAB. MKM Partners restated a “buy” rating and set a $56.00 target price on shares of Cabela’s in a research note on Wednesday, June 29th. Credit Suisse Group AG restated a “hold” rating and set a $38.00 target price on shares of Cabela’s in a research note on Tuesday, July 26th. Feltl & Co. cut shares of Cabela’s from a “buy” rating to a “hold” rating in a research note on Monday, October 3rd. Goldman Sachs Group Inc. cut shares of Cabela’s from a “neutral” rating to a “not rated” rating and set a $53.00 target price on the stock. in a research note on Monday, October 3rd. Finally, Barclays PLC cut shares of Cabela’s from an “overweight” rating to an “equal weight” rating and upped their target price for the company from $50.00 to $64.00 in a research note on Tuesday, October 4th. Eighteen research analysts have rated the stock with a hold rating and one has given a buy rating to the company’s stock. Cabela’s presently has a consensus rating of “Hold” and a consensus target price of $54.38.
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Cabela’s (NYSE:CAB) traded up 0.18% during trading on Monday, hitting $62.01. 378,855 shares of the stock were exchanged. The firm has a market capitalization of $4.25 billion, a price-to-earnings ratio of 23.52 and a beta of 0.96. Cabela’s has a 1-year low of $33.03 and a 1-year high of $63.60. The company has a 50-day moving average price of $53.63 and a 200 day moving average price of $51.28.
Cabela’s (NYSE:CAB) last announced its quarterly earnings results on Thursday, July 28th. The company reported $0.59 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.62 by $0.03. The firm earned $929.90 million during the quarter, compared to the consensus estimate of $905.42 million. Cabela’s had a return on equity of 11.16% and a net margin of 4.44%. The business’s revenue for the quarter was up 11.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.56 EPS. Equities analysts predict that Cabela’s will post $3.17 earnings per share for the current fiscal year.
A number of hedge funds and other institutional investors have recently bought and sold shares of the company. First Republic Investment Management Inc. increased its position in Cabela’s by 111.2% in the first quarter. First Republic Investment Management Inc. now owns 16,176 shares of the company’s stock valued at $787,000 after buying an additional 8,518 shares during the last quarter. Ladenburg Thalmann Financial Services Inc. increased its position in Cabela’s by 492.2% in the first quarter. Ladenburg Thalmann Financial Services Inc. now owns 60,000 shares of the company’s stock valued at $2,921,000 after buying an additional 49,868 shares during the last quarter. Squarepoint Ops LLC acquired a new position in Cabela’s during the first quarter valued at $675,000. Seven Eight Capital LLC acquired a new position in Cabela’s during the first quarter valued at $222,000. Finally, Elliott Management Corp increased its position in Cabela’s by 45.2% in the first quarter. Elliott Management Corp now owns 6,046,496 shares of the company’s stock valued at $294,404,000 after buying an additional 1,881,496 shares during the last quarter. Institutional investors and hedge funds own 68.38% of the company’s stock.
Cabela’s Company Profile
Cabela’s Incorporated is a specialty retailer and a direct marketer of hunting, fishing, camping and related outdoor merchandise. The Company offers national and regional brand products, including its Cabela’s brand. The Company’s segments include Retail, Direct, Financial Services, and Corporate Overhead and Other.
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