Hhgregg Inc. (NYSE:HGG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday.

According to Zacks, “Estimates have increased slightly over the past 60 days period after hhgregg reported narrower-than-expected loss in the first quarter of fiscal 2017. We note that hhgregg has been reporting losses and declining revenues for the past many quarters, primarily due to weak comparable store sales. Nevertheless, we are encouraged by hhgregg’s strategic initiatives and its savings and revenue initiatives, which focus on stabilizing the business by reversing the negative sales trends, optimizing marketing spending and improving cost structure. These initiatives have generated positive EBITDA results since the past one year and are expected to continue the trend in the near term as well. The company is also backing on its appliance category and has plans to expand its Fine Lines store program to boost sales. However, we believe that any sort of improvement will take time as the company is under a lot of pressure and facing volatility.”

Shares of Hhgregg (NYSE:HGG) remained flat at $1.84 during mid-day trading on Wednesday. 42,214 shares of the company were exchanged. The firm’s market capitalization is $51.15 million. The stock has a 50-day moving average of $1.97 and a 200 day moving average of $1.88. Hhgregg has a 12 month low of $1.46 and a 12 month high of $5.85.

Hhgregg (NYSE:HGG) last announced its earnings results on Thursday, August 4th. The company reported ($0.21) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.31) by $0.10. Hhgregg had a negative return on equity of 21.66% and a negative net margin of 2.75%. The company had revenue of $423.57 million for the quarter, compared to analyst estimates of $416.45 million. During the same period in the prior year, the company posted ($0.17) EPS. Hhgregg’s quarterly revenue was down 4.0% on a year-over-year basis. Equities analysts anticipate that Hhgregg will post ($1.10) EPS for the current year.

Several institutional investors have recently made changes to their positions in the stock. Spark Investment Management LLC raised its position in shares of Hhgregg by 280.7% in the first quarter. Spark Investment Management LLC now owns 344,700 shares of the company’s stock worth $727,000 after buying an additional 254,148 shares during the last quarter. Stifel Financial Corp raised its position in shares of Hhgregg by 99.5% in the second quarter. Stifel Financial Corp now owns 441,000 shares of the company’s stock worth $781,000 after buying an additional 220,000 shares during the last quarter. Finally, Renaissance Technologies LLC raised its position in shares of Hhgregg by 23.1% in the first quarter. Renaissance Technologies LLC now owns 712,300 shares of the company’s stock worth $1,503,000 after buying an additional 133,700 shares during the last quarter. 65.61% of the stock is currently owned by institutional investors.

Hhgregg Company Profile

hhgregg, Inc (hhgregg) is an appliance, electronics and furniture retailer. The Company operates as a multi-regional retailer with approximately 230 brick-and-mortar stores in 20 states that also offer global and local brands across the nation through hhgregg.com. It also sells a suite of services, including third-party premium service plans (PSPs), third-party in-home service and repair of its products, delivery and installation, and in-home repair and maintenance.

5 Day Chart for NYSE:HGG

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