Deckers Outdoor (DECK) Rating Lowered to Hold at Zacks Investment Research
Deckers Outdoor (NYSE:DECK) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Tuesday.
According to Zacks, “Sturdy sales performance across UGG, HOKA ONE ONE and Teva brands enabled Deckers to post solid first-quarter fiscal 2019 results, wherein both the top and bottom lines improved year over year and also fared better than expectations. Management’s focus on enhancing omni-channel capabilities, innovative line of products and expanding brand assortments bode well for the stock that not only surged in a year but also outpaced the industry. The company’s long-term target of $2 billion sales with operating margin of 13% by fiscal 2020 also seems achievable. Based on the performance, management raised its fiscal net sales and earnings view but provided a subdued outlook for the second quarter that not only came below expectations but was also lower from the year-ago period figures. We note that the first quarter sales gained from shipment of wholesale and distributor orders originally planned for the second quarter.”
Other research analysts have also issued research reports about the stock. Canaccord Genuity set a $137.00 target price on shares of Deckers Outdoor and gave the stock a “buy” rating in a research report on Friday, July 27th. Pivotal Research set a $119.00 target price on shares of Deckers Outdoor and gave the stock a “hold” rating in a research report on Wednesday, July 25th. ValuEngine lowered shares of Deckers Outdoor from a “strong-buy” rating to a “buy” rating in a research report on Friday, July 6th. Susquehanna Bancshares raised shares of Deckers Outdoor from a “negative” rating to a “neutral” rating and boosted their target price for the stock from $89.00 to $104.00 in a research report on Thursday, August 23rd. Finally, Stifel Nicolaus lowered shares of Deckers Outdoor from a “buy” rating to a “hold” rating and boosted their target price for the stock from $120.00 to $123.00 in a research report on Friday, July 27th. They noted that the move was a valuation call. Thirteen research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus price target of $113.77.
Deckers Outdoor (NYSE:DECK) last released its quarterly earnings data on Thursday, July 26th. The textile maker reported ($0.98) earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.42) by $0.44. Deckers Outdoor had a net margin of 6.49% and a return on equity of 20.26%. The business had revenue of $250.60 million during the quarter, compared to analyst estimates of $226.31 million. During the same quarter in the previous year, the business earned ($1.28) EPS. Deckers Outdoor’s quarterly revenue was up 19.5% compared to the same quarter last year. Equities analysts forecast that Deckers Outdoor will post 6.44 earnings per share for the current year.
In related news, Director Brian Spaly acquired 1,000 shares of the business’s stock in a transaction dated Tuesday, July 31st. The stock was acquired at an average price of $113.17 per share, with a total value of $113,170.00. Following the completion of the transaction, the director now owns 1,087 shares of the company’s stock, valued at $123,015.79. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.40% of the stock is currently owned by corporate insiders.
Several institutional investors and hedge funds have recently made changes to their positions in DECK. Millennium Management LLC increased its stake in Deckers Outdoor by 854.0% in the first quarter. Millennium Management LLC now owns 424,756 shares of the textile maker’s stock valued at $38,241,000 after acquiring an additional 380,230 shares during the period. Marshall Wace LLP bought a new stake in Deckers Outdoor during the second quarter worth about $31,126,000. Renaissance Technologies LLC grew its stake in Deckers Outdoor by 30.9% during the second quarter. Renaissance Technologies LLC now owns 575,100 shares of the textile maker’s stock worth $64,923,000 after buying an additional 135,900 shares during the last quarter. Wells Fargo & Company MN grew its stake in Deckers Outdoor by 110.7% during the second quarter. Wells Fargo & Company MN now owns 177,876 shares of the textile maker’s stock worth $20,080,000 after buying an additional 93,439 shares during the last quarter. Finally, FMR LLC grew its stake in Deckers Outdoor by 13.2% during the second quarter. FMR LLC now owns 703,314 shares of the textile maker’s stock worth $79,397,000 after buying an additional 82,214 shares during the last quarter.
About Deckers Outdoor
Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high performance activities. It offers premium footwear, apparel, and accessories under the UGG brand name; sandals, shoes, and boots under the Teva brand name; and footwear under the Sanuk brand name.
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