Fossil Group (FOSL) Upgraded to “Buy” at Zacks Investment Research
Fossil Group (NASDAQ:FOSL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday. The firm presently has a $11.00 price objective on the accessories brand company’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 17.27% from the company’s current price.
According to Zacks, “Fossil, which has crushed the industry in a month, seems to be gaining from its significant efforts to expand its wearables category, given the rising demand for tech-savvy watches. Notably, Fossil remains geared up to enrich its wearables portfolio with its smartwatch line-up in 2018. However, the company has been facing challenges related to persistent softness in traditional watch category and lackluster performance of leather and jewelry business across all regions. Further, Fossil’s gross margin has been strained for a year now due to intense promotions amid a tough retail landscape and weak margins from connected products. Unfortunately, management expects these headwinds to linger, which is clear from its dismal view. Nevertheless, the company remains focused on its New World Fossil plan, which aims to bring a transformation, fuel efficiencies and improve margins. Estimates have been stable lately ahead of fourth-quarter earnings.”
A number of other research firms also recently weighed in on FOSL. Piper Jaffray Companies set a $10.00 price target on shares of Fossil Group and gave the stock a “hold” rating in a research note on Thursday, October 12th. Buckingham Research downgraded shares of Fossil Group from a “neutral” rating to an “underperform” rating in a research note on Friday, January 5th. Bank of America cut their price objective on Fossil Group from $7.00 to $4.00 and set an “underperform” rating for the company in a report on Wednesday, November 8th. Finally, ValuEngine cut Fossil Group from a “buy” rating to a “hold” rating in a report on Thursday, November 9th. Five equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and two have issued a buy rating to the company. The company currently has an average rating of “Hold” and a consensus target price of $11.27.
Fossil Group (NASDAQ:FOSL) last posted its quarterly earnings results on Tuesday, November 7th. The accessories brand company reported $0.04 earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.28) by $0.32. Fossil Group had a negative net margin of 12.33% and a positive return on equity of 4.75%. The firm had revenue of $689.00 million for the quarter, compared to the consensus estimate of $649.87 million. During the same quarter in the previous year, the company earned $0.36 earnings per share. The business’s revenue was down 6.6% compared to the same quarter last year. analysts anticipate that Fossil Group will post -0.22 earnings per share for the current year.
In other news, EVP Martin Frey bought 7,500 shares of the business’s stock in a transaction on Wednesday, November 22nd. The shares were purchased at an average price of $7.41 per share, for a total transaction of $55,575.00. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Gregory A. Mckelvey bought 110,000 shares of the business’s stock in a transaction on Friday, November 10th. The stock was purchased at an average price of $6.22 per share, for a total transaction of $684,200.00. The disclosure for this purchase can be found here. 12.80% of the stock is currently owned by insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. GSA Capital Partners LLP bought a new stake in Fossil Group in the 2nd quarter valued at approximately $120,000. KBC Group NV grew its holdings in shares of Fossil Group by 167.9% during the 3rd quarter. KBC Group NV now owns 13,441 shares of the accessories brand company’s stock worth $125,000 after purchasing an additional 8,424 shares in the last quarter. BlueCrest Capital Management Ltd acquired a new stake in shares of Fossil Group during the 2nd quarter worth $130,000. Crossmark Global Holdings Inc. acquired a new stake in shares of Fossil Group during the 3rd quarter worth $137,000. Finally, Hotchkis & Wiley Capital Management LLC acquired a new stake in shares of Fossil Group during the 3rd quarter worth $182,000. Hedge funds and other institutional investors own 91.83% of the company’s stock.
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About Fossil Group
Fossil Group, Inc is a design, marketing and distribution company that specializes in consumer fashion accessories. The Company’s segments include Americas, Europe and Asia. Each segment includes sales to wholesale and distributor customers, and sales through the Company-owned retail stores and e-commerce activities based on the location of the selling entity.
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