Zumiez (ZUMZ) Cut to “Hold” at Zacks Investment Research
Zumiez (NASDAQ:ZUMZ) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Saturday. They currently have a $22.00 target price on the apparel and footwear maker’s stock. Zacks Investment Research‘s price objective would suggest a potential downside of 2.44% from the company’s current price.
According to Zacks, “Zumiez has outperformed the broader industry in the past six months riding on robust top and bottom line surprise trends, alongside solid comps performance in recent months. Though the company posted in line earnings in third-quarter fiscal 2017, it delivered positive earnings surprise in the preceding eight quarters. Moreover, sales topped estimates for the sixth straight quarter. It also reported positive comps for the fifth straight quarter. Further, the company’s favorable comps trend continued in November, which reflected a solid start to the holiday season. This along with robust merchandise strategies and integrated sales channels led Zumiez to provide an encouraging view for holiday season sales and earnings growth in the fourth quarter. However, the company continues to be troubled by a tough retail environment, characterized by sluggish mall traffic, volatile consumer spending and macroeconomic uncertainty.”
ZUMZ has been the topic of a number of other research reports. B. Riley set a $23.00 price target on Zumiez and gave the stock a “buy” rating in a research report on Friday, December 1st. Jefferies Group reissued a “hold” rating and set a $21.00 price target on shares of Zumiez in a research report on Sunday, December 3rd. William Blair reissued a “buy” rating on shares of Zumiez in a research report on Thursday. Robert W. Baird reissued a “hold” rating and set a $17.00 price target on shares of Zumiez in a research report on Friday, September 8th. Finally, BMO Capital Markets set a $16.00 price target on Zumiez and gave the stock a “hold” rating in a research report on Sunday, September 10th. Eight investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus price target of $20.94.
Zumiez (NASDAQ:ZUMZ) last released its quarterly earnings results on Thursday, November 30th. The apparel and footwear maker reported $0.48 earnings per share for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.48. Zumiez had a return on equity of 7.99% and a net margin of 2.84%. The company had revenue of $245.80 million for the quarter, compared to analyst estimates of $244.50 million. During the same quarter in the prior year, the firm posted $0.43 EPS. Zumiez’s quarterly revenue was up 11.0% compared to the same quarter last year. sell-side analysts predict that Zumiez will post 1.15 earnings per share for the current fiscal year.
In other Zumiez news, Director Scott Andrew Bailey sold 7,843 shares of the firm’s stock in a transaction dated Monday, December 4th. The stock was sold at an average price of $20.75, for a total value of $162,742.25. Following the completion of the sale, the director now owns 9,908 shares of the company’s stock, valued at $205,591. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. 27.50% of the stock is currently owned by company insiders.
Hedge funds and other institutional investors have recently modified their holdings of the business. Dimensional Fund Advisors LP raised its stake in shares of Zumiez by 1.9% in the second quarter. Dimensional Fund Advisors LP now owns 2,136,908 shares of the apparel and footwear maker’s stock worth $26,391,000 after purchasing an additional 39,438 shares during the last quarter. Vanguard Group Inc. raised its stake in shares of Zumiez by 7.4% in the second quarter. Vanguard Group Inc. now owns 1,776,196 shares of the apparel and footwear maker’s stock worth $21,936,000 after purchasing an additional 123,142 shares during the last quarter. Numeric Investors LLC purchased a new position in shares of Zumiez in the second quarter worth about $7,672,000. FMR LLC raised its stake in shares of Zumiez by 6.5% in the second quarter. FMR LLC now owns 595,966 shares of the apparel and footwear maker’s stock worth $7,361,000 after purchasing an additional 36,144 shares during the last quarter. Finally, Prudential Financial Inc. raised its stake in shares of Zumiez by 79.0% in the third quarter. Prudential Financial Inc. now owns 317,190 shares of the apparel and footwear maker’s stock worth $5,741,000 after purchasing an additional 139,969 shares during the last quarter. 74.58% of the stock is owned by institutional investors and hedge funds.
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Zumiez Company Profile
Zumiez Inc, including its subsidiaries, is a specialty retailer of apparel, footwear, accessories and hardgoods for young men and women through the fashion, music, art and culture of action sports, streetwear and other lifestyles. The Company operates under the names Zumiez, Blue Tomato and Fast Times.
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