Deckers Outdoor Corp. (DECK) Downgraded by Zacks Investment Research
Deckers Outdoor Corp. (NYSE:DECK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “Deckers is focused on expanding its brand assortments, bringing more innovative line of products, targeting consumers digitally via marketing and sturdy eCommerce, and optimizing omni-channel distribution. These helped post better-than-expected bottom-line performance for the fifth straight quarter, as it reported first-quarter fiscal 2017 results. Net sales also beat the estimate for the second quarter in row. In an effort to speed up growth through its long-term strategies, the company announced an organization restructuring plan that focuses on realigning its brands and optimizing its store fleet. The company envisions second quarter net sales to be up 1%−3% and earnings in the band of $1.12-$1.22 per share. However, the company’s over-reliance on the UGG brand is a matter of concern, which fell almost 20% during the first quarter. Moreover, foreign currency headwinds and stiff competition may also play spoil sport.”
DECK has been the subject of a number of other research reports. Jefferies Group lifted their price target on Deckers Outdoor Corp. from $75.00 to $80.00 and gave the company a “buy” rating in a research report on Friday, July 29th. Canaccord Genuity reiterated a “buy” rating and set a $72.00 price target on shares of Deckers Outdoor Corp. in a research report on Sunday, September 11th. Susquehanna downgraded Deckers Outdoor Corp. from a “neutral” rating to a “negative” rating and dropped their price target for the company from $59.00 to $49.00 in a research report on Thursday, October 13th. B. Riley reiterated a “neutral” rating and set a $57.00 price target on shares of Deckers Outdoor Corp. in a research report on Wednesday, July 27th. Finally, Citigroup Inc. lifted their price target on Deckers Outdoor Corp. from $56.00 to $69.00 and gave the company a “neutral” rating in a research report on Friday, July 29th. Three equities research analysts have rated the stock with a sell rating, thirteen have given a hold rating and six have assigned a buy rating to the stock. Deckers Outdoor Corp. presently has a consensus rating of “Hold” and an average target price of $60.19.
Deckers Outdoor Corp. (NYSE:DECK) traded up 1.42% during mid-day trading on Wednesday, reaching $57.04. 213,673 shares of the company’s stock were exchanged. The stock has a 50-day moving average of $60.77 and a 200-day moving average of $59.14. Deckers Outdoor Corp. has a one year low of $40.74 and a one year high of $69.94. The stock has a market cap of $1.83 billion, a price-to-earnings ratio of 16.89 and a beta of 1.08.
Deckers Outdoor Corp. (NYSE:DECK) last issued its quarterly earnings results on Thursday, July 28th. The company reported ($1.80) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($2.07) by $0.27. The firm earned $174.40 million during the quarter, compared to the consensus estimate of $170.48 million. Deckers Outdoor Corp. had a return on equity of 14.78% and a net margin of 6.03%. The company’s revenue for the quarter was down 18.4% on a year-over-year basis. During the same quarter last year, the company posted ($1.43) EPS. On average, equities research analysts anticipate that Deckers Outdoor Corp. will post $4.31 earnings per share for the current year.
In other news, Director Angel R. Martinez sold 29,058 shares of the company’s stock in a transaction on Wednesday, August 17th. The stock was sold at an average price of $67.61, for a total transaction of $1,964,611.38. Following the transaction, the director now directly owns 393,636 shares of the company’s stock, valued at $26,613,729.96. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO David Powers sold 1,750 shares of the company’s stock in a transaction on Friday, August 5th. The shares were sold at an average price of $64.17, for a total value of $112,297.50. Following the transaction, the chief executive officer now directly owns 118,873 shares in the company, valued at $7,628,080.41. The disclosure for this sale can be found here. 1.90% of the stock is owned by company insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. LS Investment Advisors LLC increased its position in shares of Deckers Outdoor Corp. by 65.0% in the second quarter. LS Investment Advisors LLC now owns 1,987 shares of the company’s stock worth $114,000 after buying an additional 783 shares during the last quarter. Public Employees Retirement System of Ohio increased its position in shares of Deckers Outdoor Corp. by 15.9% in the second quarter. Public Employees Retirement System of Ohio now owns 3,647 shares of the company’s stock worth $210,000 after buying an additional 499 shares during the last quarter. Virginia Retirement Systems ET AL acquired a new position in shares of Deckers Outdoor Corp. during the second quarter worth about $230,000. Trexquant Investment LP acquired a new position in shares of Deckers Outdoor Corp. during the second quarter worth about $240,000. Finally, Teacher Retirement System of Texas increased its position in shares of Deckers Outdoor Corp. by 13.7% in the second quarter. Teacher Retirement System of Texas now owns 4,507 shares of the company’s stock worth $259,000 after buying an additional 542 shares during the last quarter.
About Deckers Outdoor Corp.
Deckers Outdoor Corporation is engaged in designing, marketing and distributing footwear, apparel and accessories for both everyday casual lifestyle use and high performance activities. The Company’s segments include operations of its brands, such as UGG, Teva, Sanuk and other brands; wholesale divisions, and Direct-to-Consumer (DTC) business, which includes E-Commerce business and retail store business.
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