Zacks Investment Research Downgrades Iconix Brand Group (ICON) to Sell

Iconix Brand Group (NASDAQ:ICON) 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, “Iconix has significantly lagged the industry in a year, mainly due to persistent softness in women's and men's segments. In third-quarter 2017, sales at the women’s and men’s categories declined 13% and 5% respectively, causing Iconix’s overall top-line to tumble 12%. Notably, the Starter brand has been majorly hurting Iconix’s business. Consequently, the licensing agreement for this brand will not be renewed. Also, other licensing agreements with Wal-Mart and Target will not be renewed post expiration. Nonetheless, the company is striving to place these brands with new or existing licensees. Also, it has been undertaking measures to enhance international business, which fared well in the quarter under review. Moreover, earnings grew year over year and is expected to be marginally above the previous range in 2017. On the contrary, revenues are projected to be at the lower end of the previous range.”

ICON has been the topic of several other research reports. Roth Capital lowered Iconix Brand Group from a “buy” rating to a “neutral” rating and set a $2.00 price target on the stock. in a research note on Monday, October 30th. FBR & Co reissued a “buy” rating and set a $8.50 price target on shares of Iconix Brand Group in a research note on Thursday, September 14th. Sidoti assumed coverage on Iconix Brand Group in a research note on Tuesday, September 19th. They set a “neutral” rating and a $6.00 price target on the stock. ValuEngine raised Iconix Brand Group from a “hold” rating to a “buy” rating in a research note on Friday, December 1st. Finally, B. Riley reissued a “neutral” rating and set a $4.00 price target (down previously from $8.50) on shares of Iconix Brand Group in a research note on Wednesday, November 1st. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and one has issued a buy rating to the stock. The company currently has an average rating of “Hold” and an average target price of $5.00.

Shares of Iconix Brand Group (NASDAQ:ICON) traded down $0.04 during trading hours on Wednesday, hitting $1.25. The stock had a trading volume of 1,684,400 shares, compared to its average volume of 1,535,000. The stock has a market cap of $68.21, a price-to-earnings ratio of -0.08 and a beta of 1.40. The company has a debt-to-equity ratio of -5.92, a current ratio of 0.69 and a quick ratio of 1.02. Iconix Brand Group has a fifty-two week low of $1.23 and a fifty-two week high of $10.80.

Hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its stake in Iconix Brand Group by 8.4% in the 2nd quarter. Vanguard Group Inc. now owns 6,204,245 shares of the brand management company’s stock valued at $42,871,000 after buying an additional 481,845 shares in the last quarter. Smith Graham & Co. Investment Advisors LP increased its holdings in shares of Iconix Brand Group by 57.2% during the 3rd quarter. Smith Graham & Co. Investment Advisors LP now owns 1,190,598 shares of the brand management company’s stock worth $6,775,000 after buying an additional 433,018 shares during the last quarter. OxFORD Asset Management LLP acquired a new stake in shares of Iconix Brand Group during the 2nd quarter worth $707,000. Virtu KCG Holdings LLC increased its holdings in shares of Iconix Brand Group by 110.8% during the 2nd quarter. Virtu KCG Holdings LLC now owns 53,565 shares of the brand management company’s stock worth $370,000 after buying an additional 28,151 shares during the last quarter. Finally, ING Groep NV acquired a new stake in shares of Iconix Brand Group during the 3rd quarter worth $11,096,000. 84.78% of the stock is currently owned by hedge funds and other institutional investors.

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Iconix Brand Group Company Profile

Iconix Brand Group, Inc is a brand management company. As of December 31, 2016, the Company owned a portfolio of over 30 global consumer brands across women’s, men’s, and home categories. The Company operates through segments: men’s, women’s, home and international. The Company’s brand portfolio includes brands, such as Candie’s, Bongo, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific/OP, Danskin/Danskin Now, Rocawear/Roc Nation, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Ecko Unltd/Mark Ecko Cut & Sew, Zoo York, Umbro, Lee Cooper and Artful Dodger, and interests in Material Girl, Ed Hardy, Truth or Dare, Modern Amusement, Buffalo, Nick Graham Hydraulic and PONY brands.

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