Skechers USA (SKX) Raised to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Skechers USA (NYSE:SKX) from a hold rating to a buy rating in a research report released on Wednesday. Zacks Investment Research currently has $32.00 price target on the textile maker’s stock.
According to Zacks, “Greater emphasis on new line of products, cost containment efforts, inventory management and global distribution platform have been aiding Skechers. The company reversed the preceding quarter’s earnings miss with a beat in the third quarter of 2018. Management also provided an upbeat view for the final quarter, despite the year-over-year earnings decline and top-line miss. The sluggish domestic wholesale business performance was compensated by double-digit increase in both international wholesale and global company-owned retail businesses. Skechers’ domestic e-commerce business also continues to gain traction. Management now expects both the top and bottom lines to increase year over year during the final quarter. However, higher general & administrative expenses remain a concern. Although, the stock has declined in the past three months, we expect the aforementioned drivers to help it revive in the near-term.”
Several other equities research analysts also recently weighed in on the company. ValuEngine downgraded Skechers USA from a hold rating to a sell rating in a report on Tuesday, November 20th. Citigroup cut their target price on Skechers USA from $30.00 to $29.00 and set a neutral rating on the stock in a report on Monday, October 22nd. Wells Fargo & Co set a $30.00 target price on Skechers USA and gave the stock a hold rating in a report on Friday, October 19th. B. Riley set a $45.00 target price on Skechers USA and gave the stock a buy rating in a report on Friday, October 19th. Finally, Buckingham Research cut their target price on Skechers USA from $35.00 to $30.00 and set a buy rating on the stock in a report on Wednesday, October 17th. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating and six have assigned a buy rating to the company’s stock. The company has a consensus rating of Hold and an average price target of $32.49.
Skechers USA (NYSE:SKX) last released its quarterly earnings data on Thursday, October 18th. The textile maker reported $0.58 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.51 by $0.07. Skechers USA had a return on equity of 13.81% and a net margin of 4.13%. The company had revenue of $1.18 billion for the quarter, compared to the consensus estimate of $1.22 billion. During the same quarter last year, the business posted $0.59 EPS. Skechers USA’s revenue for the quarter was up 7.5% on a year-over-year basis. On average, analysts forecast that Skechers USA will post 1.85 earnings per share for the current fiscal year.
In other Skechers USA news, President Michael Greenberg sold 75,630 shares of Skechers USA stock in a transaction dated Friday, November 2nd. The stock was sold at an average price of $29.28, for a total transaction of $2,214,446.40. Following the transaction, the president now directly owns 593,309 shares of the company’s stock, valued at approximately $17,372,087.52. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 27.88% of the stock is currently owned by insiders.
Large investors have recently made changes to their positions in the company. BlackRock Inc. lifted its stake in shares of Skechers USA by 1.9% in the 2nd quarter. BlackRock Inc. now owns 13,107,423 shares of the textile maker’s stock valued at $393,355,000 after purchasing an additional 244,350 shares during the period. Olstein Capital Management L.P. lifted its stake in shares of Skechers USA by 94.2% in the 2nd quarter. Olstein Capital Management L.P. now owns 301,650 shares of the textile maker’s stock valued at $9,053,000 after purchasing an additional 146,350 shares during the period. Riverhead Capital Management LLC lifted its stake in shares of Skechers USA by 11.1% in the 2nd quarter. Riverhead Capital Management LLC now owns 35,326 shares of the textile maker’s stock valued at $1,060,000 after purchasing an additional 3,539 shares during the period. Federated Investors Inc. PA lifted its stake in shares of Skechers USA by 12.7% in the 2nd quarter. Federated Investors Inc. PA now owns 89,515 shares of the textile maker’s stock valued at $2,687,000 after purchasing an additional 10,118 shares during the period. Finally, GSA Capital Partners LLP lifted its stake in shares of Skechers USA by 36.9% in the 2nd quarter. GSA Capital Partners LLP now owns 42,422 shares of the textile maker’s stock valued at $1,273,000 after purchasing an additional 11,436 shares during the period. 74.28% of the stock is currently owned by institutional investors.
About Skechers USA
Skechers U.SA, Inc designs, develops, markets, and distributes footwear for men, women, and children; and performance footwear for men and women under the Skechers GO brand worldwide. It operates through three segments: Domestic Wholesale Sales, International Wholesale Sales, and Retail Sales. The company offers casual boots, shoes, and sandals for men; shoes, oxfords and slip-ons, lug outsole and fashion boots, and casual sandals for women; dress casuals, seasonal sandals and boots, classic and wide fit, and relaxed fit casuals for men and women; and casual athletic line for men and women under the Skechers USA brand.
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