Zacks Investment Research Downgrades Skechers U.S.A., Inc. (SKX) to Sell
Skechers U.S.A., Inc. (NYSE:SKX) 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, “After posting earnings beat in first-quarter 2017, Skechers succumbed to a negative earnings surprise in the second quarter. Although the company's top line improved, it failed to act as a savior for the bottom line that fell 20.8% due to increased operating expenses and higher effective tax rate. Investors remain apprehensive about Skechers’ bottom line that has been declining for five straight quarters and also missed the Zacks Consensus Estimate four times in the said period. Further, soft third quarter earnings projection also raises concern. On the contrary, net sales beat the consensus mark for the third quarter in row and management also provided an encouraging outlook for the same. We believe greater emphasis on new line of products, cost containment efforts, inventory management and global distribution platform may help lift the stock’s performance that has underperformed the industry in the past three months.”
SKX has been the subject of a number of other reports. Vetr raised shares of Skechers U.S.A. from a “hold” rating to a “buy” rating and set a $32.12 target price for the company in a report on Monday, July 10th. Wedbush reissued a “neutral” rating on shares of Skechers U.S.A. in a report on Monday, July 24th. OTR Global raised shares of Skechers U.S.A. from a “mixed” rating to a “positive” rating in a report on Tuesday, July 18th. Susquehanna Bancshares Inc raised shares of Skechers U.S.A. from a “neutral” rating to a “positive” rating and increased their price target for the stock from $25.00 to $32.00 in a report on Monday, June 5th. Finally, BidaskClub cut shares of Skechers U.S.A. from a “hold” rating to a “sell” rating in a report on Friday, August 4th. Three investment analysts have rated the stock with a sell rating, three have given a hold rating and ten have issued a buy rating to the stock. The company currently has an average rating of “Hold” and an average price target of $31.10.
Skechers U.S.A. (NYSE SKX) traded down 0.19% during trading on Wednesday, hitting $25.71. The company’s stock had a trading volume of 477,591 shares. The firm has a market cap of $4.07 billion, a PE ratio of 17.83 and a beta of 0.18. Skechers U.S.A. has a one year low of $18.81 and a one year high of $30.00. The company has a 50-day moving average of $27.08 and a 200 day moving average of $26.77.
Skechers U.S.A. (NYSE:SKX) last announced its earnings results on Thursday, July 20th. The textile maker reported $0.38 EPS for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.06). Skechers U.S.A. had a net margin of 5.92% and a return on equity of 12.79%. The business had revenue of $1.03 billion during the quarter, compared to analysts’ expectations of $966.46 million. During the same period in the previous year, the company posted $0.48 earnings per share. Skechers U.S.A.’s quarterly revenue was up 16.9% on a year-over-year basis. On average, equities analysts forecast that Skechers U.S.A. will post $1.57 earnings per share for the current year.
In other Skechers U.S.A. news, Director Richard Rappaport sold 1,500 shares of the company’s stock in a transaction dated Friday, June 23rd. The shares were sold at an average price of $28.38, for a total transaction of $42,570.00. Following the transaction, the director now directly owns 20,000 shares in the company, valued at $567,600. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, General Counsel Phillip Paccione sold 1,004 shares of the company’s stock in a transaction dated Thursday, August 24th. The stock was sold at an average price of $27.24, for a total transaction of $27,348.96. The disclosure for this sale can be found here. Corporate insiders own 38.20% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of the business. Alps Advisors Inc. grew its position in Skechers U.S.A. by 0.3% during the second quarter. Alps Advisors Inc. now owns 18,304 shares of the textile maker’s stock worth $540,000 after buying an additional 47 shares during the period. Northwestern Mutual Investment Management Company LLC grew its position in Skechers U.S.A. by 0.3% during the first quarter. Northwestern Mutual Investment Management Company LLC now owns 23,053 shares of the textile maker’s stock worth $633,000 after buying an additional 75 shares during the period. Utah Retirement Systems grew its position in Skechers U.S.A. by 0.4% during the first quarter. Utah Retirement Systems now owns 23,700 shares of the textile maker’s stock worth $651,000 after buying an additional 100 shares during the period. Municipal Employees Retirement System of Michigan grew its position in Skechers U.S.A. by 0.3% during the first quarter. Municipal Employees Retirement System of Michigan now owns 61,790 shares of the textile maker’s stock worth $1,696,000 after buying an additional 160 shares during the period. Finally, Neuburgh Advisers LLC grew its position in Skechers U.S.A. by 3.8% during the first quarter. Neuburgh Advisers LLC now owns 4,796 shares of the textile maker’s stock worth $132,000 after buying an additional 176 shares during the period. Institutional investors own 70.52% of the company’s stock.
Skechers U.S.A. Company Profile
Skechers U.SA, Inc is a designer and marketer of Skechers-branded lifestyle footwear for men, women and children, and performance footwear for men and women under the Skechers GO brand name. The Company operates through three segments: domestic wholesale sales, international wholesale sales, and retail sales, which includes e-commerce sales.
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