Fossil Group (NASDAQ:FOSL) Stock Price Down 8.5% – Time to Sell?

Shares of Fossil Group, Inc. (NASDAQ:FOSL) dropped 8.5% on Thursday. The company traded as low as $9.14 and last traded at $9.1190. 373,122 shares changed hands during mid-day trading, a decline of 56% from the average session volume of 844,019 shares. The stock had previously closed at $9.97.

Fossil Group News Summary

Here’s some of the latest news about FOSL:

• Positive Sentiment: Fossil reported third-quarter EPS of $0.19, ahead of the roughly $0.04 loss analysts expected, and revenue of $271.2 million versus expectations of $248.7 million. Sales returned to growth for the first time in four years, supporting management’s view that its turnaround is ahead of plan. Fossil Group Q3 results
• Neutral Sentiment: Unusually high call-option activity suggests traders are positioning for further volatility, but options activity does not establish that the rally is supported by fundamentals. Fossil options activity
• Negative Sentiment: A Seeking Alpha analysis argues the strong results may already be priced in after the stock’s rally, maintaining a Hold view. This valuation caution could encourage profit-taking despite the improved results. Seeking Alpha analysis

Analyst Ratings Changes

FOSL has been the subject of a number of recent analyst reports. Lake Street Capital started coverage on Fossil Group in a research report on Wednesday, October 7th. They set a “buy” rating and a $10.00 target price for the company. Northland Securities set a $8.00 price target on Fossil Group in a report on Thursday, August 13th. Weiss Ratings reissued a “sell (d-)” rating on shares of Fossil Group in a research report on Thursday, October 15th. Finally, Craig Hallum initiated coverage on shares of Fossil Group in a research note on Thursday, September 10th. They issued a “buy” rating and a $12.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Fossil Group presently has an average rating of “Moderate Buy” and an average price target of $9.25.

Fossil Group Stock Down 7.6%

The company has a current ratio of 1.76, a quick ratio of 1.05 and a debt-to-equity ratio of 2.74. The firm has a market cap of $545.02 million, a price-to-earnings ratio of -27.97 and a beta of 1.61. The firm has a 50-day moving average of $6.47 and a two-hundred day moving average of $4.98.

Fossil Group (NASDAQ:FOSL) last released its earnings results on Tuesday, November 10th. The accessories brand company reported $0.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.23. The firm had revenue of $271.20 million for the quarter, compared to analyst estimates of $248.66 million. Fossil Group had a negative return on equity of 7.75% and a negative net margin of 1.86%. During the same quarter last year, the firm posted ($0.76) EPS. As a group, sell-side analysts predict that Fossil Group, Inc. will post -0.04 earnings per share for the current fiscal year.

Insider Buying and Selling at Fossil Group

In related news, Director Pamela J. Edwards acquired 7,208 shares of the stock in a transaction dated Thursday, August 20th. The shares were acquired at an average price of $5.58 per share, for a total transaction of $40,220.64. Following the completion of the purchase, the director owned 50,251 shares in the company, valued at approximately $280,400.58. The trade was a 16.75% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 3.80% of the company’s stock.

Hedge Funds Weigh In On Fossil Group

Several large investors have recently bought and sold shares of FOSL. BlackRock Inc. bought a new stake in Fossil Group in the 2nd quarter valued at $15,263,000. Bank of America Corp DE acquired a new stake in Fossil Group in the 2nd quarter worth $854,000. Miller Value Partners LLC bought a new position in shares of Fossil Group during the 2nd quarter worth about $8,874,000. Nantahala Capital Management LLC bought a new position in shares of Fossil Group during the 2nd quarter worth about $22,791,230. Finally, Fund 1 Investments LLC bought a new position in shares of Fossil Group during the 2nd quarter worth about $2,223,000. 61.14% of the stock is currently owned by institutional investors and hedge funds.

About Fossil Group

Fossil Group designs, develops, markets and distributes fashion accessories, including watches, handbags, small leather goods, jewelry and other accessories. Its products are sold under company-owned brands such as Fossil, Skagen, Michele and Zodiac, as well as through licensing agreements with third-party brands. Founded in 1984, the company has built its business around combining watchmaking with fashion-oriented design. It serves customers internationally through wholesale partners, retail stores and online channels.