Citi Trends Inc. (NASDAQ:CTRN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued 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.”

A number of other equities research analysts also recently weighed in on the stock. TheStreet upgraded shares of Citi Trends from a “hold” rating to a “buy” rating in a research note on Monday, September 19th. MKM Partners reissued a “neutral” rating and set a $16.00 price objective on shares of Citi Trends in a report on Wednesday, August 17th. Four research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company’s stock. Citi Trends presently has an average rating of “Hold” and an average target price of $18.50.

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Citi Trends (NASDAQ:CTRN) traded up 0.60% during mid-day trading on Tuesday, hitting $20.12. 19,495 shares of the company were exchanged. The stock’s 50 day moving average is $19.72 and its 200-day moving average is $17.72. The company has a market cap of $295.26 million, a price-to-earnings ratio of 23.34 and a beta of 0.34. Citi Trends has a 12-month low of $14.01 and a 12-month high of $27.75.

Citi Trends (NASDAQ:CTRN) last posted its quarterly earnings results on Wednesday, August 17th. The company reported ($0.01) earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.06) by $0.05. Citi Trends had a net margin of 1.86% and a return on equity of 5.64%. The firm had revenue of $155.30 million for the quarter. During the same quarter in the prior year, the firm earned $0.01 EPS. The firm’s quarterly revenue was up .9% on a year-over-year basis. Equities research analysts predict that Citi Trends will post $1.00 EPS for the current year.

Several hedge funds and other institutional investors have recently modified their holdings of CTRN. Stoneridge Investment Partners LLC acquired a new position in Citi Trends during the second quarter worth about $203,000. Algert Global LLC acquired a new position in Citi Trends during the third quarter worth about $290,000. KCG Holdings Inc. acquired a new position in Citi Trends during the second quarter worth about $234,000. Bank of Montreal Can acquired a new position in Citi Trends during the second quarter worth about $244,000. Finally, State Board of Administration of Florida Retirement System boosted its position in 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. 94.70% of the stock is owned by institutional investors.

About Citi Trends

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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