Zacks Investment Research cut shares of Citi Trends Inc. (NASDAQ:CTRN) from a buy rating to a hold rating in a research note released on Tuesday morning.

According to Zacks, “Citi Trends should gain from its strategies like better utilization of floor area, improvisation of merchandise margins and efficient inventory management, which have been helping it to turn its operating performance around. Also, the company is currently testing its website, reflecting its focus on capturing eCommerce business. Apart from this, Citi Trends’ strong balance sheet and cash flow generation ability highlight its loyalty toward shareholders. However, the seasonal nature of Citi Trends’ business exposes it to the risk of failure to perform well in the peak season. The ever changing consumer taste and preference also remains a threat. Though the company expects average units sold to remain pressurized in fiscal 2016, it anticipates robust sales in the fiscal third quarter with persistent improvement in its home business mix and improvements to apparel variety. Estimates have been stable ahead of the third quarter results.”

Several other analysts also recently commented on the company. TheStreet raised Citi Trends from a hold rating to a buy rating in a research note on Monday, September 19th. MKM Partners reaffirmed a neutral rating and set a $16.00 price objective on shares of Citi Trends in a research note on Wednesday, August 17th. Four research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company’s stock. Citi Trends currently has a consensus rating of Hold and an average price target of $18.50.

Shares of Citi Trends (NASDAQ:CTRN) traded down 0.35% during mid-day trading on Tuesday, hitting $19.95. The company’s stock had a trading volume of 364 shares. The company has a 50-day moving average price of $19.72 and a 200-day moving average price of $17.73. The stock has a market cap of $292.77 million, a PE ratio of 23.14 and a beta of 0.34. Citi Trends has a 1-year low of $14.01 and a 1-year high of $27.75.

Citi Trends (NASDAQ:CTRN) last issued its quarterly earnings data on Wednesday, August 17th. The company reported ($0.01) EPS for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.06) by $0.05. The business had revenue of $155.30 million for the quarter. Citi Trends had a return on equity of 5.64% and a net margin of 1.86%. The business’s quarterly revenue was up .9% compared to the same quarter last year. During the same period in the previous year, the business posted $0.01 EPS. Analysts predict that Citi Trends will post $1.00 EPS for the current fiscal year.

Institutional investors have recently added to or reduced their stakes in the company. Royce & Associates LP boosted its position in Citi Trends by 23.3% in the first quarter. Royce & Associates LP now owns 264,673 shares of the company’s stock worth $4,719,000 after buying an additional 50,000 shares during the period. Jacobs Levy Equity Management Inc. bought a new position in shares of Citi Trends during the first quarter valued at $633,000. Panagora Asset Management Inc. boosted its position in shares of Citi Trends by 6.7% in the first quarter. Panagora Asset Management Inc. now owns 201,522 shares of the company’s stock valued at $3,593,000 after buying an additional 12,577 shares during the last quarter. Nantahala Capital Management LLC boosted its position in shares of Citi Trends by 31.5% in the first quarter. Nantahala Capital Management LLC now owns 1,002,603 shares of the company’s stock valued at $17,876,000 after buying an additional 240,194 shares during the last quarter. Finally, Bank of Montreal Can bought a new position in shares of Citi Trends during the second quarter valued at $244,000. Hedge funds and other institutional investors own 94.70% of the company’s stock.

About Citi Trends

Citi Trends, Inc is a retailer of urban fashion apparel and accessories. The Company’s segment is retail operations. The Company operates approximately 520 stores in both urban and rural markets in over 30 states. The Company offers products under its brands, such as Citi Steps and Red Ape. The Company’s merchandise includes apparel, accessories and home.

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