Cabela’s Inc. (CAB) Rating Lowered to Sell at Zacks Investment Research
Cabela’s Inc. (NYSE:CAB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “After delivering back to back earnings beat, Cabela’s succumbed to a negative earnings surprise in the quarter, with the merchandise gross margin contracting year over year – partly accountable to softness in the apparel category. Additionally, stiff competition and cannibalization remain threats, as these may dent results. Nevertheless, the company has undertaken several cost-saving initiatives to improve operational performance. The cost-saving endeavors include an improvement in IT process, optimum utilization of retail labor, indirect procurement, merchandise sourcing along with retail support functions and supply chain efficiencies. Moreover, management reiterated its guidance for 2016. It envisions 2016 earnings per share to grow in the range of high-single-digits or low-double-digits in comparison with adjusted earnings per share of $2.88 in 2015.”
Several other analysts have also recently weighed in on the stock. MKM Partners reiterated a “buy” rating and issued a $56.00 price objective on shares of Cabela’s in a research note on Wednesday, June 29th. Credit Suisse Group AG reiterated a “hold” rating and issued a $38.00 price objective on shares of Cabela’s in a research note on Tuesday, July 26th. Finally, Vetr cut shares of Cabela’s from a “buy” rating to a “hold” rating and set a $51.80 price objective for the company. in a research note on Wednesday, June 8th. One research analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and four have assigned a buy rating to the company. Cabela’s presently has a consensus rating of “Hold” and a consensus target price of $47.89.
Cabela’s (NYSE:CAB) opened at 52.36 on Tuesday. The firm has a market capitalization of $3.58 billion, a price-to-earnings ratio of 19.86 and a beta of 1.07. Cabela’s has a one year low of $33.03 and a one year high of $54.84. The company has a 50-day moving average of $50.08 and a 200 day moving average of $50.13.
Cabela’s (NYSE:CAB) last issued its quarterly earnings data on Thursday, July 28th. The company reported $0.59 earnings per share for the quarter, missing the consensus estimate of $0.62 by $0.03. Cabela’s had a return on equity of 11.16% and a net margin of 4.44%. The business earned $929.90 million during the quarter, compared to analyst estimates of $905.42 million. During the same quarter last year, the firm earned $0.56 EPS. Cabela’s’s revenue for the quarter was up 11.2% compared to the same quarter last year. On average, analysts anticipate that Cabela’s will post $3.17 EPS for the current year.
A number of large investors have recently bought and sold shares of the company. Elliott Management Corp raised its stake in Cabela’s by 45.2% in the first quarter. Elliott Management Corp now owns 6,046,496 shares of the company’s stock worth $294,404,000 after buying an additional 1,881,496 shares during the last quarter. A.R.T. Advisors LLC acquired a new stake in Cabela’s during the first quarter worth $2,427,000. Geode Capital Management LLC raised its stake in Cabela’s by 2.3% in the first quarter. Geode Capital Management LLC now owns 298,147 shares of the company’s stock worth $14,516,000 after buying an additional 6,724 shares during the last quarter. Quadrature Capital Ltd acquired a new stake in Cabela’s during the first quarter worth $629,000. Finally, UBS Group AG raised its stake in Cabela’s by 1.6% in the first quarter. UBS Group AG now owns 20,818 shares of the company’s stock worth $1,014,000 after buying an additional 331 shares during the last quarter. 71.37% of the stock is currently owned by hedge funds and other institutional investors.
Cabela’s Company Profile
Cabela’s Incorporated is a specialty retailer and a direct marketer of hunting, fishing, camping and related outdoor merchandise. The Company offers national and regional brand products, including its Cabela’s brand. The Company’s segments include Retail, Direct, Financial Services, and Corporate Overhead and Other.
Receive News & Stock Ratings for Cabela's Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cabela's Inc. and related stocks with our FREE daily email newsletter.