Wells Fargo & Co Reiterates Hold Rating for Michaels Companies (MIK)
Michaels Companies (NASDAQ:MIK)‘s stock had its “hold” rating reissued by equities research analysts at Wells Fargo & Co in a research note issued on Thursday. They currently have a $17.00 price objective on the specialty retailer’s stock, down from their prior price objective of $19.00. Wells Fargo & Co’s price objective would indicate a potential upside of 8.63% from the stock’s previous close.
The analysts wrote, “We believe this outlook shows that MIK still has work left to drive sustainable comp growth (guide flat at midpoint), and recent cost efforts (sourcing, fulfillment, etc.) have yet to be sufficient enough to offset ongoing distribution headwinds. While encouraging Q3 results are a step in the right direction, we remain on the sidelines, as industry trends remain stagnant, traffic has been negative for 3 straight quarters, and margins continue to deteriorate. Reiterate Market Perform.””
Other equities research analysts have also recently issued reports about the stock. Credit Suisse Group reiterated a “buy” rating on shares of Michaels Companies in a research report on Thursday, August 9th. ValuEngine cut shares of Michaels Companies from a “sell” rating to a “strong sell” rating in a research report on Sunday, August 26th. BidaskClub cut shares of Michaels Companies from a “buy” rating to a “hold” rating in a research report on Wednesday, August 29th. Loop Capital set a $18.00 price objective on shares of Michaels Companies and gave the stock a “hold” rating in a research report on Thursday. Finally, Deutsche Bank decreased their price objective on shares of Michaels Companies from $21.00 to $19.00 and set a “hold” rating for the company in a research report on Friday, August 31st. Two analysts have rated the stock with a sell rating, five have assigned a hold rating, five have given a buy rating and one has issued a strong buy rating to the stock. Michaels Companies has a consensus rating of “Hold” and an average target price of $21.67.
Michaels Companies (NASDAQ:MIK) last announced its quarterly earnings results on Thursday, December 6th. The specialty retailer reported $0.48 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.44 by $0.04. Michaels Companies had a net margin of 6.31% and a negative return on equity of 24.56%. The firm had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.25 billion. During the same period in the prior year, the company posted $0.44 EPS. The company’s revenue was up 2.7% on a year-over-year basis. Equities research analysts predict that Michaels Companies will post 2.35 earnings per share for the current year.
Large investors have recently bought and sold shares of the business. Schwab Charles Investment Management Inc. grew its holdings in Michaels Companies by 13.1% in the second quarter. Schwab Charles Investment Management Inc. now owns 659,448 shares of the specialty retailer’s stock worth $12,642,000 after purchasing an additional 76,319 shares during the period. Bank of New York Mellon Corp grew its holdings in Michaels Companies by 1.5% in the second quarter. Bank of New York Mellon Corp now owns 1,748,896 shares of the specialty retailer’s stock worth $33,526,000 after purchasing an additional 26,109 shares during the period. Seven Eight Capital LP acquired a new stake in Michaels Companies in the third quarter worth $4,702,000. BlackRock Inc. grew its holdings in Michaels Companies by 0.9% in the second quarter. BlackRock Inc. now owns 9,456,390 shares of the specialty retailer’s stock worth $181,279,000 after purchasing an additional 85,558 shares during the period. Finally, Clearline Capital LP acquired a new stake in Michaels Companies in the second quarter worth $2,730,000.
About Michaels Companies
The Michaels Companies, Inc owns and operates arts and crafts specialty retail stores for Makers and do-it-yourself home decorators in North America. It operates Michaels stores that offer approximately 45,000 stock-keeping units (SKUs) in crafts, home decor and seasonal, framing, and paper crafting; and Aaron Brothers stores, which offer approximately 5,600 SKUs, including photo frames, a line of ready-made frames, art prints, framed art, art supplies, and custom framing services.
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