Citi Trends Inc. (NASDAQ:CTRN) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Monday.

According to Zacks, “After posting a beat in the last quarter, Citi Trends reverted to its negative earnings surprise trend in third-quarter fiscal 2016. The company delivered a loss in the quarter, which compared unfavorably with the earnings reported in the year-ago period and our estimate. Further, sales lagged estimates and comps dipped year over year, due to soft average units sold and external factors like the Hurricane Matthew and unseasonably warm weather, which weighed upon demand for fall products. However, trends seemed to improve as the weather normalized, boosting fourth-quarter comps. Also, the company remains impressed with its Home division’s performance which is expected to deliver a robust show in the final quarter. Given these factors and a solid inventory position at the start of the fourth quarter, Citi Trends remains optimistic about its ongoing comps momentum. Nonetheless, the lowered gross margin view and the drab third quarter hurt estimates.”

Several other equities analysts have also weighed in on CTRN. MKM Partners restated a “neutral” rating and set a $16.00 price objective on shares of Citi Trends in a research report on Wednesday, August 17th. TheStreet upgraded shares of Citi Trends from a “hold” rating to a “buy” rating in a research report on Monday, September 19th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the stock. Citi Trends currently has an average rating of “Hold” and a consensus target price of $18.50.

Shares of Citi Trends (NASDAQ:CTRN) opened at 17.75 on Monday. Citi Trends has a 1-year low of $14.01 and a 1-year high of $22.73. The stock has a market capitalization of $260.52 million, a P/E ratio of 23.11 and a beta of 0.34. The firm’s 50-day moving average is $20.04 and its 200 day moving average is $18.18.

Citi Trends (NASDAQ:CTRN) last posted its quarterly earnings data on Tuesday, November 22nd. The company reported ($0.06) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.03 by $0.09. Citi Trends had a net margin of 1.64% and a return on equity of 5.27%. The business had revenue of $160.70 million for the quarter, compared to the consensus estimate of $167.45 million. During the same quarter last year, the business posted $0.04 EPS. The business’s revenue for the quarter was up 1.1% on a year-over-year basis. On average, analysts expect that Citi Trends will post $1.00 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 13th. Shareholders of record on Tuesday, November 29th will be paid a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a yield of 1.35%. The ex-dividend date of this dividend is Friday, November 25th. Citi Trends’s dividend payout ratio is presently 31.17%.

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Hedge funds have recently bought and sold shares of the stock. Nationwide Fund Advisors raised its stake in Citi Trends by 10.9% in the second quarter. Nationwide Fund Advisors now owns 44,930 shares of the company’s stock worth $698,000 after buying an additional 4,419 shares in the last quarter. Alambic Investment Management L.P. raised its stake in Citi Trends by 187.0% in the second quarter. Alambic Investment Management L.P. now owns 53,803 shares of the company’s stock worth $836,000 after buying an additional 35,055 shares in the last quarter. Royce & Associates LP raised its stake in Citi Trends by 24.3% in the second quarter. Royce & Associates LP now owns 328,973 shares of the company’s stock worth $5,109,000 after buying an additional 64,300 shares during the period. GSA Capital Partners LLP bought a new stake in Citi Trends during the second quarter worth about $859,000. Finally, State Board of Administration of Florida Retirement System raised its stake in Citi Trends by 9.1% in the second quarter. State Board of Administration of Florida Retirement System now owns 16,865 shares of the company’s stock worth $262,000 after buying an additional 1,409 shares during the period. 93.07% of the stock is owned by institutional investors.

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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