Citi Trends Inc. (NASDAQ:CTRN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.

According to Zacks, “Citi Trends should gain from its strategies like better utilization of floor area, improvisation of merchandise margins and efficient inventory management, which have been helping it to turn its operating performance around. Also, the company is currently testing its website, reflecting its focus on capturing eCommerce business. Apart from this, Citi Trends’ strong balance sheet and cash flow generation ability highlight its loyalty toward shareholders. However, the seasonal nature of Citi Trends’ business exposes it to the risk of failure to perform well in the peak season. The ever changing consumer taste and preference also remains a threat. Though the company expects average units sold to remain pressurized in fiscal 2016, it anticipates robust sales in the fiscal third quarter with persistent improvement in its home business mix and improvements to apparel variety. Estimates have been stable ahead of the third quarter results.”

A number of other analysts have also recently weighed in on the stock. TheStreet raised shares of Citi Trends from a “hold” rating to a “buy” rating in a report on Monday, September 19th. MKM Partners reissued a “neutral” rating and set a $16.00 target price on shares of Citi Trends in a report on Wednesday, August 17th. Four investment analysts have rated the stock with a hold rating and one has given a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average target price of $18.50.

Citi Trends (NASDAQ:CTRN) traded up 0.60% during mid-day trading on Tuesday, reaching $20.12. 19,495 shares of the company were exchanged. Citi Trends has a 12 month low of $14.01 and a 12 month high of $27.75. The stock has a market capitalization of $295.26 million, a P/E ratio of 23.34 and a beta of 0.34. The company’s 50 day moving average price is $19.72 and its 200-day moving average price is $17.72.

Citi Trends (NASDAQ:CTRN) last posted its quarterly earnings results on Wednesday, August 17th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.06) by $0.05. The firm had revenue of $155.30 million for the quarter. Citi Trends had a net margin of 1.86% and a return on equity of 5.64%. The company’s revenue was up .9% on a year-over-year basis. During the same period in the prior year, the company earned $0.01 earnings per share. On average, equities analysts expect that Citi Trends will post $1.00 earnings per share for the current fiscal year.

Several hedge funds have recently added to or reduced their stakes in CTRN. FMR LLC boosted its stake in Citi Trends by 18.3% in the second quarter. FMR LLC now owns 1,551,453 shares of the company’s stock worth $24,094,000 after buying an additional 239,453 shares during the period. Alliancebernstein L.P. boosted its stake in Citi Trends by 9.4% in the second quarter. Alliancebernstein L.P. now owns 1,479,927 shares of the company’s stock worth $22,983,000 after buying an additional 127,700 shares during the period. Paradigm Capital Management Inc. NY boosted its stake in Citi Trends by 37.7% in the second quarter. Paradigm Capital Management Inc. NY now owns 1,311,982 shares of the company’s stock worth $20,375,000 after buying an additional 358,869 shares during the period. Dimensional Fund Advisors LP boosted its stake in Citi Trends by 0.9% in the second quarter. Dimensional Fund Advisors LP now owns 1,156,546 shares of the company’s stock worth $17,961,000 after buying an additional 10,173 shares during the period. Finally, Massachusetts Financial Services Co. MA boosted its stake in Citi Trends by 15.7% in the second quarter. Massachusetts Financial Services Co. MA now owns 1,133,691 shares of the company’s stock worth $17,606,000 after buying an additional 154,173 shares during the period. 94.70% of the stock is currently owned by institutional investors and hedge funds.

About Citi Trends

Citi Trends, Inc is a retailer of urban fashion apparel and accessories. The Company’s segment is retail operations. The Company operates approximately 520 stores in both urban and rural markets in over 30 states. The Company offers products under its brands, such as Citi Steps and Red Ape. The Company’s merchandise includes apparel, accessories and home.

5 Day Chart for NASDAQ:CTRN

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