Citi Trends Inc. (CTRN) Downgraded to Hold at Zacks Investment Research
Citi Trends Inc. (NASDAQ:CTRN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “Citi Trends should gain from its strategies like better utilization of floor area, improvisation of merchandise margins and efficient inventory management, which have been helping it to turn its operating performance around. Also, the company is currently testing its website, reflecting its focus on capturing eCommerce business. Apart from this, Citi Trends’ strong balance sheet and cash flow generation ability highlight its loyalty toward shareholders. However, the seasonal nature of Citi Trends’ business exposes it to the risk of failure to perform well in the peak season. The ever changing consumer taste and preference also remains a threat. Though the company expects average units sold to remain pressurized in fiscal 2016, it anticipates robust sales in the fiscal third quarter with persistent improvement in its home business mix and improvements to apparel variety. Estimates have been stable ahead of the third quarter results.”
CTRN has been the subject of a number of other research reports. TheStreet upgraded shares of Citi Trends from a “hold” rating to a “buy” rating in a research note on Monday, September 19th. MKM Partners reiterated a “neutral” rating and issued a $16.00 target price on shares of Citi Trends in a research note on Wednesday, August 17th. Four analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. Citi Trends currently has an average rating of “Hold” and a consensus price target of $18.50.
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Shares of Citi Trends (NASDAQ:CTRN) traded up 0.10% during midday trading on Tuesday, hitting $20.02. The stock had a trading volume of 40,327 shares. The stock has a market cap of $293.79 million, a PE ratio of 23.23 and a beta of 0.34. Citi Trends has a 52 week low of $14.01 and a 52 week high of $27.75. The stock has a 50-day moving average of $19.72 and a 200 day moving average of $17.72.
Citi Trends (NASDAQ:CTRN) last announced its quarterly earnings results on Wednesday, August 17th. The company reported ($0.01) EPS for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.05. The firm earned $155.30 million during the quarter. Citi Trends had a net margin of 1.86% and a return on equity of 5.64%. The firm’s revenue for the quarter was up .9% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.01 EPS. Analysts anticipate that Citi Trends will post $1.00 EPS for the current fiscal year.
Hedge funds have recently modified their holdings of the stock. GSA Capital Partners LLP bought a new stake in shares of Citi Trends during the second quarter worth $859,000. State Board of Administration of Florida Retirement System raised its stake in shares of Citi Trends by 9.1% in the second quarter. State Board of Administration of Florida Retirement System now owns 16,865 shares of the company’s stock worth $262,000 after buying an additional 1,409 shares in the last quarter. California Public Employees Retirement System raised its stake in shares of Citi Trends by 5.4% in the second quarter. California Public Employees Retirement System now owns 122,969 shares of the company’s stock worth $1,910,000 after buying an additional 6,300 shares in the last quarter. Emerald Acquisition Ltd. bought a new stake in shares of Citi Trends during the second quarter worth $2,711,000. Finally, Wedge Capital Management L L P NC raised its stake in shares of Citi Trends by 22.4% in the second quarter. Wedge Capital Management L L P NC now owns 63,300 shares of the company’s stock worth $983,000 after buying an additional 11,600 shares in the last quarter. 94.70% of the stock is owned by institutional investors and hedge funds.
Citi Trends Company Profile
Citi Trends, Inc is a retailer of urban fashion apparel and accessories. The Company’s segment is retail operations. The Company operates approximately 520 stores in both urban and rural markets in over 30 states. The Company offers products under its brands, such as Citi Steps and Red Ape. The Company’s merchandise includes apparel, accessories and home.
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