Michael Kors Holdings Ltd. (KORS) Downgraded by Zacks Investment Research
Michael Kors Holdings Ltd. (NYSE:KORS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.
According to Zacks, “Michael Kors continued with its positive earnings surprise streak for the sixth-consecutive quarter, when it posted second-quarter fiscal 2017 results. However, despite witnessing better-than-expected bottom-line results, investor sentiment was hurt due to year-over-year declines in both the top and bottom lines coupled with subdued outlook. Management pointed out that results were persistently hurt by sluggish mall traffic and fall in tourism along with reduce sell-in of inventory to the U.S. wholesale channel. Moreover, geopolitical issues, competitive retail landscape and foreign currency fluctuations are also likely to keep top-line under pressure. Further, heavy investments may also weigh upon margins. To combat this, Michael Kors has been constantly deploying resources to expand its product offerings, open new stores, build shop-in-shops, and upgrade E-commerce platform.”
KORS has been the subject of a number of other research reports. Jefferies Group reaffirmed a “buy” rating on shares of Michael Kors Holdings in a report on Sunday, September 4th. Morgan Stanley downgraded shares of Michael Kors Holdings from an “overweight” rating to an “equal weight” rating and cut their price target for the stock from $69.00 to $52.00 in a report on Monday. Vetr raised shares of Michael Kors Holdings from a “hold” rating to a “strong-buy” rating and set a $53.75 price target for the company in a report on Tuesday. JPMorgan Chase & Co. upped their price target on shares of Michael Kors Holdings from $47.00 to $50.00 and gave the stock a “neutral” rating in a report on Thursday, August 11th. Finally, BMO Capital Markets set a $46.00 price target on shares of Michael Kors Holdings and gave the stock a “hold” rating in a report on Thursday, August 11th. Two analysts have rated the stock with a sell rating, twenty have assigned a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. The stock currently has a consensus rating of “Hold” and an average target price of $53.08.
Michael Kors Holdings (NYSE:KORS) opened at 47.16 on Tuesday. Michael Kors Holdings has a 52 week low of $34.83 and a 52 week high of $59.49. The company has a market capitalization of $7.73 billion, a PE ratio of 10.75 and a beta of 0.84. The firm has a 50-day moving average of $48.43 and a 200-day moving average of $48.83.
Michael Kors Holdings (NYSE:KORS) last posted its quarterly earnings data on Thursday, November 10th. The lifestyle brand reported $0.95 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.88 by $0.07. The firm earned $1.09 billion during the quarter, compared to the consensus estimate of $1.09 billion. Michael Kors Holdings had a net margin of 16.94% and a return on equity of 42.50%. The business’s revenue for the quarter was down 3.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.07 EPS. Equities analysts expect that Michael Kors Holdings will post $4.41 earnings per share for the current fiscal year.
In other news, SVP Lee S. Sporn sold 26,341 shares of the stock in a transaction dated Friday, September 2nd. The shares were sold at an average price of $50.02, for a total value of $1,317,576.82. Following the completion of the sale, the senior vice president now owns 40,707 shares in the company, valued at $2,036,164.14. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Lee S. Sporn sold 4,700 shares of the stock in a transaction dated Tuesday, August 30th. The shares were sold at an average price of $50.00, for a total transaction of $235,000.00. Following the completion of the sale, the senior vice president now owns 22,653 shares of the company’s stock, valued at approximately $1,132,650. The disclosure for this sale can be found here. 5.00% of the stock is currently owned by insiders.
Hedge funds have recently made changes to their positions in the stock. Exxonmobil Investment Management Inc. TX increased its stake in Michael Kors Holdings by 4.6% in the second quarter. Exxonmobil Investment Management Inc. TX now owns 45,680 shares of the lifestyle brand’s stock worth $2,260,000 after buying an additional 1,993 shares during the period. British Columbia Investment Management Corp increased its stake in Michael Kors Holdings by 29.1% in the second quarter. British Columbia Investment Management Corp now owns 109,258 shares of the lifestyle brand’s stock worth $5,406,000 after buying an additional 24,611 shares during the period. BNP Paribas Arbitrage SA increased its stake in Michael Kors Holdings by 34.1% in the second quarter. BNP Paribas Arbitrage SA now owns 95,592 shares of the lifestyle brand’s stock worth $4,730,000 after buying an additional 24,323 shares during the period. SevenBridge Financial Group LLC bought a new stake in Michael Kors Holdings during the first quarter worth about $1,495,000. Finally, First Republic Investment Management Inc. increased its stake in Michael Kors Holdings by 84.5% in the first quarter. First Republic Investment Management Inc. now owns 10,004 shares of the lifestyle brand’s stock worth $570,000 after buying an additional 4,582 shares during the period. Institutional investors own 92.78% of the company’s stock.
Michael Kors Holdings Company Profile
Michael Kors Holdings Limited is a designer, marketer, distributor and retailer of branded women’s apparel and accessories and men’s apparel bearing the Michael Kors tradename and related trademarks MICHAEL KORS, MICHAEL MICHAEL KORS, and various other related trademarks and logos. The Company operates through three segments: retail, wholesale and licensing.
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