Zacks Investment Research Upgrades Guess Inc. (GES) to “Buy”
Guess Inc. (NYSE:GES) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday. The firm currently has a $16.00 price objective on the stock. Zacks Investment Research’s target price suggests a potential upside of 11.34% from the stock’s current price.
According to Zacks, “Estimates have been revised upward over the past 60 days since Guess’ posted earnings of $0.14 per share, which beat the Zacks Consensus Estimate of $0.06. Earnings also surpassed management’s guidance. Revenue were almost flat year over year as improvement in Europe was offset by deterioration in American retail and wholesale business. However, revenues missed the Zacks Consensus Estimate. The company raised the lower end of fiscal 2017 earnings as it expects comps to improve in the second half of the year. The company has a strong e-Commerce business and is aggressively opening stores in the Americas Retail category to boost sales. However, the company’s operations in China have been hampered by tough macroeconomic challenges.”
A number of other equities analysts have also issued reports on GES. B. Riley upgraded shares of Guess from a “neutral” rating to a “buy” rating and set a $21.00 target price for the company in a research report on Thursday, August 25th. Piper Jaffray Cos. set a $12.00 price objective on shares of Guess and gave the company a “sell” rating in a research report on Sunday, August 21st. Jefferies Group raised their price objective on shares of Guess from $16.00 to $17.00 and gave the company a “hold” rating in a research report on Thursday, August 25th. Telsey Advisory Group raised their price objective on shares of Guess from $16.00 to $17.00 and gave the company a “market perform” rating in a research report on Thursday, August 25th. Finally, Mizuho restated a “neutral” rating and set a $17.00 price objective on shares of Guess in a research report on Tuesday, July 12th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and five have assigned a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average price target of $18.07.
Guess (NYSE:GES) traded up 0.21% during trading on Tuesday, hitting $14.40. 359,271 shares of the stock were exchanged. The stock’s 50-day moving average price is $15.44 and its 200-day moving average price is $16.03. The firm has a market cap of $1.22 billion, a PE ratio of 18.14 and a beta of 0.76. Guess has a 12-month low of $13.78 and a 12-month high of $23.45.
Guess (NYSE:GES) last announced its earnings results on Wednesday, August 24th. The company reported $0.14 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.07 by $0.07. The firm earned $545 million during the quarter, compared to analyst estimates of $551.53 million. Guess had a net margin of 3.10% and a return on equity of 5.16%. Guess’s revenue was down .2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.21 EPS. On average, equities analysts expect that Guess will post $0.65 EPS for the current year.
The business also recently declared a quarterly dividend, which was paid on Friday, September 23rd. Stockholders of record on Wednesday, September 7th were given a $0.225 dividend. This represents a $0.90 dividend on an annualized basis and a dividend yield of 6.26%. The ex-dividend date was Friday, September 2nd. Guess’s dividend payout ratio (DPR) is 112.50%.
In other news, Director Anthony Chidoni sold 4,000 shares of the stock in a transaction that occurred on Friday, July 15th. The shares were sold at an average price of $15.54, for a total value of $62,160.00. Following the completion of the sale, the director now directly owns 157,744 shares of the company’s stock, valued at $2,451,341.76. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Amigo Victor Herrero purchased 2,177 shares of Guess stock in a transaction dated Monday, September 26th. The stock was bought at an average cost of $14.87 per share, with a total value of $32,371.99. Following the completion of the transaction, the chief executive officer now directly owns 334,703 shares of the company’s stock, valued at $4,977,033.61. The disclosure for this purchase can be found here. 28.80% of the stock is currently owned by insiders.
Hedge funds have recently bought and sold shares of the company. BlackRock Fund Advisors raised its position in shares of Guess by 5.7% in the second quarter. BlackRock Fund Advisors now owns 6,540,717 shares of the company’s stock valued at $98,438,000 after buying an additional 355,028 shares during the last quarter. Dimensional Fund Advisors LP raised its position in shares of Guess by 12.8% in the second quarter. Dimensional Fund Advisors LP now owns 6,175,584 shares of the company’s stock valued at $92,941,000 after buying an additional 698,604 shares during the last quarter. State Street Corp raised its position in shares of Guess by 21.6% in the second quarter. State Street Corp now owns 5,470,291 shares of the company’s stock valued at $82,330,000 after buying an additional 973,006 shares during the last quarter. Vanguard Group Inc. raised its position in shares of Guess by 4.0% in the second quarter. Vanguard Group Inc. now owns 4,315,576 shares of the company’s stock valued at $64,949,000 after buying an additional 166,409 shares during the last quarter. Finally, BlackRock Institutional Trust Company N.A. raised its position in shares of Guess by 3.4% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 1,894,703 shares of the company’s stock valued at $28,515,000 after buying an additional 62,454 shares during the last quarter. 77.63% of the stock is owned by institutional investors and hedge funds.
Guess Company Profile
Guess?, Inc designs, markets, distributes and licenses a lifestyle collection of apparel and accessories for men, women and children. The Company operates through five segments: Americas Retail, which includes its retail and e-commerce operations in North and Central America and its retail operations in South America; Europe, which includes its wholesale, retail and e-commerce operations in Europe and the Middle East; Asia, which includes its retail, e-commerce and wholesale operations in Asia; Americas Wholesale, which includes its wholesale operations in the Americas, and Licensing, which includes licensing operations of the Company across the world.
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