Zacks Investment Research Downgrades Iconix Brand Group Inc. (ICON) to Hold
Iconix Brand Group Inc. (NASDAQ:ICON) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “Estimates have been rising lately after Iconix reported second quarter results. While Iconix’s earnings of $0.27 per share beat the Zacks Consensus Estimate by 17.4%, it declined about 37% from the year-ago level, mainly due to a decline in licensing revenues. Total licensing revenue was almost in line with the Zacks Consensus Estimate but declined 2% year over year, despite a favorable currency impact. The raised stake by Joe Huber signals investment opportunities to create new plans and proposals regarding the company’s management and its investment. Though the company believes in its strong brands and growth strategy, the company expects other headwinds like higher expenses, adjustments related to the financial restatement, and transition costs to hamper its profitability.”
Separately, Guggenheim started coverage on shares of Iconix Brand Group in a research report on Friday, September 30th. They issued a “neutral” rating for the company. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and one has given a buy rating to the company. The stock has an average rating of “Hold” and a consensus price target of $10.50.
Shares of Iconix Brand Group (NASDAQ:ICON) opened at 8.31 on Wednesday. Iconix Brand Group has a one year low of $4.67 and a one year high of $16.88. The stock’s 50 day moving average is $8.38 and its 200-day moving average is $7.81. The stock’s market capitalization is $466.41 million.
Iconix Brand Group (NASDAQ:ICON) last posted its quarterly earnings data on Thursday, August 4th. The company reported $0.27 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.23 by $0.04. The firm earned $95.70 million during the quarter, compared to analysts’ expectations of $97.02 million. Iconix Brand Group had a negative net margin of 63.95% and a positive return on equity of 7.26%. The firm’s quarterly revenue was down 1.7% on a year-over-year basis. During the same quarter last year, the company posted $0.45 EPS. On average, equities research analysts predict that Iconix Brand Group will post $1.17 EPS for the current fiscal year.
Several large investors have recently made changes to their positions in ICON. Royal Bank of Canada raised its stake in shares of Iconix Brand Group by 72.8% in the second quarter. Royal Bank of Canada now owns 90,376 shares of the company’s stock worth $612,000 after buying an additional 38,076 shares during the last quarter. Schwab Charles Investment Management Inc. raised its stake in shares of Iconix Brand Group by 21.5% in the second quarter. Schwab Charles Investment Management Inc. now owns 446,047 shares of the company’s stock worth $3,016,000 after buying an additional 78,841 shares during the last quarter. Arizona State Retirement System raised its stake in shares of Iconix Brand Group by 1.2% in the second quarter. Arizona State Retirement System now owns 25,160 shares of the company’s stock worth $170,000 after buying an additional 300 shares during the last quarter. Highbridge Capital Management LLC purchased a new stake in shares of Iconix Brand Group during the second quarter worth $423,000. Finally, Guggenheim Capital LLC raised its stake in shares of Iconix Brand Group by 3.6% in the second quarter. Guggenheim Capital LLC now owns 256,470 shares of the company’s stock worth $1,734,000 after buying an additional 8,902 shares during the last quarter. Institutional investors and hedge funds own 80.08% of the company’s stock.
Iconix Brand Group Company Profile
Iconix Brand Group, Inc is a brand management company. The Company owns a diversified portfolio of over 35 global consumer brands across women’s, men’s, home and entertainment categories. The Company operates through five segments: men’s, women’s, home, entertainment and corporate. 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, Sharper Image, Umbro, Lee Cooper, Strawberry Shortcake and Artful Dodger, and interests in Material Girl, Peanuts, Ed Hardy, Truth or Dare, Modern Amusement, Buffalo, Nick Graham Hydraulic and PONY brands.
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