Fossil Group (FOSL) Raised to “Hold” at Zacks Investment Research
Fossil Group (NASDAQ:FOSL) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “Fossil has underperformed the industry in the past year owing to persistent softness in traditional watch category and lackluster performance of leather and jewelry business across all regions. Further, the company’s gross margin has been strained for a year now owing to intense promotions amid a tough retail landscape and weak margins from connected products. These factors weighed upon the company’s third-quarter 2017 results, wherein both top and bottom lines declined year over year. Also, management expects these headwinds to linger in 2017, which is clear from its dismal outlook. Nonetheless, the company is undertaking significant efforts to expand its wearables category, given the rising demand for tech-savvy watches. Also, it remains focused on its New World Fossil plan, which aims to bring a transformation, fuel efficiencies and improve margins.”
Other research analysts also recently issued reports about the company. Buckingham Research downgraded Fossil Group from a “neutral” rating to an “underperform” rating in a research note on Friday, January 5th. ValuEngine downgraded Fossil Group from a “buy” rating to a “hold” rating in a research note on Thursday, November 9th. Piper Jaffray Companies set a $10.00 price objective on Fossil Group and gave the company a “hold” rating in a research note on Thursday, October 12th. Finally, Bank of America dropped their price objective on Fossil Group from $7.00 to $4.00 and set an “underperform” rating on the stock in a research note on Wednesday, November 8th. Five analysts have rated the stock with a sell rating, eleven have issued a hold rating and one has assigned a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus target price of $11.35.
Shares of Fossil Group (NASDAQ:FOSL) traded up $0.55 on Tuesday, reaching $9.38. The company’s stock had a trading volume of 1,612,815 shares, compared to its average volume of 1,770,000. The firm has a market cap of $455.19, a P/E ratio of -1.30 and a beta of 0.75. Fossil Group has a 52-week low of $5.50 and a 52-week high of $26.78. The company has a debt-to-equity ratio of 0.68, a current ratio of 2.32 and a quick ratio of 1.09.
Fossil Group (NASDAQ:FOSL) last announced its quarterly earnings data on Tuesday, November 7th. The accessories brand company reported $0.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.28) by $0.32. The company had revenue of $689.00 million for the quarter, compared to the consensus estimate of $649.87 million. Fossil Group had a positive return on equity of 4.75% and a negative net margin of 12.33%. The firm’s revenue was down 6.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.36 EPS. equities research analysts forecast that Fossil Group will post -0.22 EPS for the current fiscal year.
In other news, EVP Gregory A. Mckelvey bought 110,000 shares of the firm’s stock in a transaction that occurred on Friday, November 10th. The stock was acquired at an average cost of $6.22 per share, with a total value of $684,200.00. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Martin Frey bought 7,500 shares of the firm’s stock in a transaction that occurred on Wednesday, November 22nd. The stock was purchased at an average cost of $7.41 per share, with a total value of $55,575.00. The disclosure for this purchase can be found here. Insiders own 12.80% of the company’s stock.
Institutional investors have recently modified their holdings of the stock. Shell Asset Management Co. bought a new stake in Fossil Group in the 3rd quarter valued at about $652,000. Northwestern Mutual Investment Management Company LLC bought a new stake in Fossil Group in the 2nd quarter valued at about $204,000. GSA Capital Partners LLP bought a new stake in Fossil Group in the 2nd quarter valued at about $120,000. BlueCrest Capital Management Ltd bought a new stake in Fossil Group in the 2nd quarter valued at about $130,000. Finally, KBC Group NV increased its position in Fossil Group by 167.9% in the 3rd quarter. KBC Group NV now owns 13,441 shares of the accessories brand company’s stock valued at $125,000 after buying an additional 8,424 shares in the last quarter. 91.83% of the stock is owned by institutional investors and hedge funds.
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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