Zacks Investment Research Downgrades Tiffany & Co. (TIF) to Sell
Tiffany & Co. (NYSE:TIF) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Thursday.
According to Zacks, “A mature domestic market, foreign currency headwinds and cautious consumer spending have been weighing upon Tiffany’s performance. The company did make a comeback by posting an earnings beat in the second quarter – after commencing fiscal 2016 on a soft note – it failed to curb the year-over-year decline. This was the fourth quarter in row, when Tiffany’s top and bottom lines have declined. Management continues to anticipate earnings per share for fiscal 2016 to decline by a mid-single-digit percentage and worldwide net sales to decrease by a low-single-digit percentage from the prior year. Nevertheless, we believe that the company’s omni-channel platform, store expansion programs, tapping of new markets and venturing into new revenue generating avenues such as watches may help improve performance in the long run. We noted that estimates have been stable ahead of the company’s third quarter earnings release.”
TIF has been the topic of a number of other reports. Morgan Stanley reaffirmed a “hold” rating on shares of Tiffany & Co. in a report on Monday, August 15th. TheStreet raised Tiffany & Co. from a “hold” rating to a “buy” rating in a report on Wednesday, October 26th. RBC Capital Markets reaffirmed a “sector perform” rating and set a $76.00 price target (up from $65.00) on shares of Tiffany & Co. in a report on Sunday, August 28th. Nomura set a $76.00 price target on Tiffany & Co. and gave the company a “buy” rating in a report on Monday, August 29th. Finally, Mizuho upped their price target on Tiffany & Co. from $72.00 to $82.00 and gave the company a “buy” rating in a report on Tuesday, August 23rd. Two analysts have rated the stock with a sell rating, nine have issued a hold rating, fifteen have assigned a buy rating and one has assigned a strong buy rating to the stock. The company has an average rating of “Buy” and an average target price of $78.95.
Shares of Tiffany & Co. (NYSE:TIF) opened at 78.06 on Thursday. The company has a 50-day moving average price of $74.80 and a 200 day moving average price of $67.86. Tiffany & Co. has a one year low of $56.99 and a one year high of $81.89. The stock has a market cap of $9.75 billion, a price-to-earnings ratio of 22.26 and a beta of 1.84.
Tiffany & Co. (NYSE:TIF) last released its earnings results on Thursday, August 25th. The company reported $0.84 EPS for the quarter, topping analysts’ consensus estimates of $0.72 by $0.12. Tiffany & Co. had a return on equity of 15.90% and a net margin of 11.26%. The firm had revenue of $932 million for the quarter, compared to analysts’ expectations of $931.37 million. During the same period in the prior year, the firm posted $0.86 earnings per share. The company’s quarterly revenue was down 5.9% on a year-over-year basis. Equities research analysts expect that Tiffany & Co. will post $3.66 earnings per share for the current year.
The business also recently announced a quarterly dividend, which will be paid on Tuesday, January 10th. Stockholders of record on Tuesday, December 20th will be issued a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a dividend yield of 2.31%. Tiffany & Co.’s dividend payout ratio (DPR) is 51.28%.
In other news, SVP Philippe Galtie sold 482 shares of Tiffany & Co. stock in a transaction that occurred on Tuesday, September 20th. The stock was sold at an average price of $72.01, for a total value of $34,708.82. Following the completion of the transaction, the senior vice president now owns 670 shares in the company, valued at approximately $48,246.70. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 1.40% of the stock is owned by insiders.
Large investors have recently modified their holdings of the company. Welch Group LLC acquired a new stake in shares of Tiffany & Co. during the third quarter worth about $111,000. Fuller & Thaler Asset Management Inc. acquired a new stake in shares of Tiffany & Co. during the second quarter worth about $103,000. Advisory Services Network LLC raised its stake in shares of Tiffany & Co. by 13.6% in the second quarter. Advisory Services Network LLC now owns 1,879 shares of the company’s stock worth $114,000 after buying an additional 225 shares in the last quarter. Pacer Advisors Inc. raised its stake in shares of Tiffany & Co. by 9.9% in the second quarter. Pacer Advisors Inc. now owns 2,051 shares of the company’s stock worth $124,000 after buying an additional 184 shares in the last quarter. Finally, Signaturefd LLC raised its stake in shares of Tiffany & Co. by 6,690.6% in the second quarter. Signaturefd LLC now owns 2,173 shares of the company’s stock worth $132,000 after buying an additional 2,141 shares in the last quarter. 86.44% of the stock is owned by hedge funds and other institutional investors.
Tiffany & Co. Company Profile
Tiffany & Co is a holding company that operates through its subsidiary companies. The Company’s principal subsidiary, Tiffany and Company (Tiffany), is a jeweler and specialty retailer. Through its subsidiaries, the Company designs and manufactures products and operates TIFFANY & CO. retail stores. The Company’s segments include Americas, Asia-Pacific, Japan, Europe and Other.
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