Skechers USA (SKX) Upgraded to “Buy” by Zacks Investment Research

Skechers USA (NYSE:SKX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Monday. The brokerage presently has a $46.00 price target on the textile maker’s stock. Zacks Investment Research‘s target price indicates a potential upside of 15.29% from the company’s current price.

According to Zacks, “Greater emphasis on new line of products, cost containment efforts, inventory management and global distribution platform has helped lift Skechers’ performance. The company delivered positive earnings surprise in the final quarter of 2017, marking the second straight successive beat. Notably, the spectacular performance in the back-to-back quarters has led the stock to outpace the industry in the past six months. Net sales also beat the estimate for the fifth quarter in row gaining from solid performances at the international wholesale business, company-owned global retail business and domestic wholesale business. Skechers’ domestic e-commerce business, which also contributed to sales growth, continues to gain traction. Management now expects both the top and bottom lines to increase year over year during the first quarter of 2018. However, higher general & administrative expenses remain a concern.”

SKX has been the topic of a number of other research reports. Cowen reiterated a “buy” rating and set a $35.00 target price on shares of Skechers USA in a report on Friday, October 27th. B. Riley set a $37.00 target price on Skechers USA and gave the company a “buy” rating in a report on Friday, October 20th. Morgan Stanley increased their target price on Skechers USA from $28.50 to $31.00 and gave the company an “equal weight” rating in a report on Friday, October 20th. Vetr cut Skechers USA from a “strong-buy” rating to a “hold” rating and set a $33.73 target price on the stock. in a report on Monday, October 23rd. Finally, Wells Fargo & Co increased their target price on Skechers USA from $33.00 to $36.00 and gave the company a “market perform” rating in a report on Friday, October 20th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and twelve have assigned a buy rating to the company. Skechers USA currently has a consensus rating of “Buy” and a consensus target price of $41.34.

Skechers USA (NYSE:SKX) traded down $1.16 on Monday, hitting $39.90. The company had a trading volume of 3,903,027 shares, compared to its average volume of 2,089,867. The firm has a market cap of $6,340.00, a PE ratio of 34.81, a P/E/G ratio of 1.29 and a beta of 0.20. The company has a current ratio of 3.52, a quick ratio of 2.06 and a debt-to-equity ratio of 0.04. Skechers USA has a 1-year low of $22.64 and a 1-year high of $42.73.

Skechers USA (NYSE:SKX) last released its quarterly earnings results on Thursday, February 8th. The textile maker reported $0.21 earnings per share for the quarter, topping analysts’ consensus estimates of $0.13 by $0.08. The business had revenue of $970.59 million for the quarter, compared to analysts’ expectations of $881.39 million. Skechers USA had a return on equity of 14.63% and a net margin of 4.30%. The company’s revenue was up 27.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.04 EPS. equities analysts expect that Skechers USA will post 2.27 earnings per share for the current fiscal year.

Skechers USA announced that its board has initiated a stock repurchase program on Thursday, February 8th that allows the company to buyback $150.00 million in outstanding shares. This buyback authorization allows the textile maker to buy shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

In other news, Director Jeffrey Greenberg sold 75,000 shares of the firm’s stock in a transaction on Friday, December 1st. The stock was sold at an average price of $35.16, for a total transaction of $2,637,000.00. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO Robert Greenberg sold 500,000 shares of the firm’s stock in a transaction on Wednesday, December 20th. The stock was sold at an average price of $37.66, for a total value of $18,830,000.00. Following the sale, the chief executive officer now owns 267,713 shares in the company, valued at approximately $10,082,071.58. The disclosure for this sale can be found here. Insiders have sold 580,750 shares of company stock worth $21,665,988 in the last 90 days. Insiders own 38.20% of the company’s stock.

Several hedge funds have recently bought and sold shares of SKX. Tower Research Capital LLC TRC acquired a new stake in shares of Skechers USA during the fourth quarter worth $139,000. PNC Financial Services Group Inc. raised its position in shares of Skechers USA by 6.6% in the 2nd quarter. PNC Financial Services Group Inc. now owns 5,428 shares of the textile maker’s stock worth $161,000 after buying an additional 335 shares during the period. CIBC Asset Management Inc purchased a new position in shares of Skechers USA in the 4th quarter worth $202,000. Advisor Partners LLC purchased a new position in shares of Skechers USA in the 4th quarter worth $203,000. Finally, Dearborn Partners LLC purchased a new position in shares of Skechers USA in the 4th quarter worth $214,000. Institutional investors and hedge funds own 68.59% of the company’s stock.

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Skechers USA 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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