Wall Street Zen Downgrades Ermenegildo Zegna (NYSE:ZGN) to Hold

Ermenegildo Zegna (NYSE:ZGN) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued on Saturday.

A number of other research analysts have also issued reports on the company. UBS Group reiterated a “buy” rating and set a $14.50 price target on shares of Ermenegildo Zegna in a research report on Friday, May 1st. Morgan Stanley started coverage on Ermenegildo Zegna in a research report on Thursday, February 12th. They set an “equal weight” rating and a $11.00 price target for the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Ermenegildo Zegna in a research report on Monday, April 20th. Finally, TD Cowen upgraded Ermenegildo Zegna from a “hold” rating to a “buy” rating and boosted their price target for the stock from $13.00 to $15.00 in a research report on Wednesday, May 20th. Five investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Ermenegildo Zegna currently has a consensus rating of “Moderate Buy” and a consensus price target of $12.51.

Ermenegildo Zegna Price Performance

Shares of ZGN opened at $14.73 on Friday. The stock has a fifty day moving average price of $11.86 and a 200 day moving average price of $10.90. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.91 and a current ratio of 1.59. Ermenegildo Zegna has a 12 month low of $7.61 and a 12 month high of $14.98.

Ermenegildo Zegna (NYSE:ZGN) last issued its quarterly earnings data on Friday, March 20th. The company reported $0.15 EPS for the quarter, missing analysts’ consensus estimates of $0.26 by ($0.11). The company had revenue of $577.83 million during the quarter, compared to analysts’ expectations of $1.17 billion. As a group, sell-side analysts anticipate that Ermenegildo Zegna will post 0.46 EPS for the current fiscal year.

Insider Activity

In other news, Director Alessandro Sartori sold 6,505 shares of the company’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $13.12, for a total value of $85,345.60. Following the completion of the sale, the director owned 142,237 shares in the company, valued at $1,866,149.44. This represents a 4.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Gian Franco Santhia sold 5,768 shares of the company’s stock in a transaction on Friday, May 8th. The shares were sold at an average price of $13.12, for a total value of $75,676.16. Following the completion of the sale, the chief financial officer owned 44,448 shares of the company’s stock, valued at approximately $583,157.76. This trade represents a 11.49% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 31,378 shares of company stock worth $411,679 over the last 90 days. 1.20% of the stock is currently owned by company insiders.

Institutional Trading of Ermenegildo Zegna

Several institutional investors have recently modified their holdings of the company. Temasek Holdings Private Ltd lifted its holdings in shares of Ermenegildo Zegna by 114.5% in the third quarter. Temasek Holdings Private Ltd now owns 27,242,276 shares of the company’s stock valued at $257,440,000 after buying an additional 14,542,295 shares during the period. Barrow Hanley Mewhinney & Strauss LLC lifted its holdings in shares of Ermenegildo Zegna by 74.6% in the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 4,177,804 shares of the company’s stock valued at $42,822,000 after buying an additional 1,785,266 shares during the period. Artisan Partners Limited Partnership lifted its holdings in shares of Ermenegildo Zegna by 1.2% in the third quarter. Artisan Partners Limited Partnership now owns 2,123,543 shares of the company’s stock valued at $20,067,000 after buying an additional 24,894 shares during the period. Portolan Capital Management LLC lifted its holdings in shares of Ermenegildo Zegna by 15.6% in the third quarter. Portolan Capital Management LLC now owns 1,369,176 shares of the company’s stock valued at $12,939,000 after buying an additional 185,190 shares during the period. Finally, Millennium Management LLC lifted its holdings in shares of Ermenegildo Zegna by 73.7% in the fourth quarter. Millennium Management LLC now owns 1,188,887 shares of the company’s stock valued at $12,186,000 after buying an additional 504,546 shares during the period. Institutional investors and hedge funds own 12.91% of the company’s stock.

Ermenegildo Zegna Company Profile

Ermenegildo Zegna is a global luxury fashion house specializing in men’s tailored clothing, casualwear, accessories, footwear and fragrances. With a focus on high-quality fabrics and craftsmanship, the company manages the entire value chain from wool sourcing and textile production to garment design, manufacturing and retail distribution.

Founded in 1910 by Ermenegildo Zegna in Trivero, Italy, the company began as a textile mill dedicated to producing fine wool fabrics. Over the decades it expanded into ready-to-wear clothing and built a reputation for sartorial excellence.