The Michaels Companies, Inc. (MIK) Cut to “Sell” at Zacks Investment Research
The Michaels Companies, Inc. (NASDAQ:MIK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “The Michaels Companies, Inc. is a specialty retailer of arts and crafts. The Company’s stores offer stock-keeping units in arts, crafts, scrapbooking, floral, framing, home décor, seasonal offerings, and children’s hobbies. It produces 11 exclusive private brands including Recollections(R), Studio Decor(R), Bead Landing(R), Creatology(R), Ashland(R), Celebrate It(R), Art Minds(R), Artist’s Loft(R), Craft Smart(R), Loops & Threads(R) and Imagin8(R). The Michaels Companies, Inc. is based in Irving, Texas. “
Several other equities research analysts have also recently commented on the company. ValuEngine cut The Michaels Companies from a “buy” rating to a “hold” rating in a research note on Friday, June 2nd. BidaskClub cut The Michaels Companies from a “sell” rating to a “strong sell” rating in a research note on Wednesday, July 12th. Morgan Stanley reissued an “overweight” rating and issued a $25.00 price target on shares of The Michaels Companies in a research note on Tuesday, June 13th. J P Morgan Chase & Co raised The Michaels Companies from a “neutral” rating to an “overweight” rating and set a $23.00 price target for the company in a research note on Monday, July 24th. Finally, Bank of America Corporation reissued a “buy” rating and issued a $26.00 price target on shares of The Michaels Companies in a research note on Friday, June 16th. Two analysts have rated the stock with a sell rating, six have assigned a hold rating and seven have assigned a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus price target of $25.25.
The Michaels Companies (MIK) traded up 3.38% during midday trading on Wednesday, hitting $20.48. 2,008,515 shares of the company traded hands. The Michaels Companies has a 12-month low of $17.25 and a 12-month high of $26.30. The stock has a 50 day moving average price of $19.19 and a 200-day moving average price of $20.53. The company has a market cap of $3.87 billion, a PE ratio of 10.95 and a beta of 0.96.
The Michaels Companies (NASDAQ:MIK) last announced its quarterly earnings results on Tuesday, June 6th. The specialty retailer reported $0.38 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.39 by $0.01. The firm had revenue of $1.16 billion during the quarter, compared to the consensus estimate of $1.17 billion. The Michaels Companies had a net margin of 7.30% and a negative return on equity of 22.75%. The company’s quarterly revenue was up .0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.36 EPS. Analysts expect that The Michaels Companies will post $2.08 EPS for the current year.
The Michaels Companies announced that its board has authorized a stock buyback program on Thursday, June 15th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the specialty retailer to purchase shares of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its shares are undervalued.
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A number of large investors have recently bought and sold shares of the company. First Mercantile Trust Co. raised its stake in The Michaels Companies by 11.4% in the first quarter. First Mercantile Trust Co. now owns 15,020 shares of the specialty retailer’s stock valued at $336,000 after buying an additional 1,540 shares during the period. First Quadrant L P CA raised its position in shares of The Michaels Companies by 294.2% in the first quarter. First Quadrant L P CA now owns 1,056,155 shares of the specialty retailer’s stock worth $23,647,000 after buying an additional 788,216 shares during the period. Glen Harbor Capital Management LLC acquired a new position in shares of The Michaels Companies during the first quarter worth approximately $1,303,000. Acadian Asset Management LLC acquired a new position in shares of The Michaels Companies during the first quarter worth approximately $5,353,000. Finally, ProShare Advisors LLC acquired a new position in shares of The Michaels Companies during the first quarter worth approximately $209,000. Hedge funds and other institutional investors own 98.43% of the company’s stock.
The Michaels Companies Company Profile
The Michaels Companies, Inc (Michaels) is an arts and crafts specialty retailer in North America. The Company’s segments include Michaels-U.S., Michaels-Canada, Aaron Brothers, Pat Catan’s and Darice. As of January 28, 2017, the Company operated 1,223 Michaels retail stores in 49 states and Canada, with approximately 18,000 average square feet of selling space per store.
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