Zacks Investment Research Downgrades Fossil Group, Inc. (FOSL) to Sell
Fossil Group, Inc. (NASDAQ:FOSL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Friday.
According to Zacks, “Fossil has underperformed the industry year to date owing to persistent softness in traditional watch category and lackluster performance of leather and jewelry business across all regions. Further, the company’s gross margin has been strained for a year now owing to intense promotions amid a tough retail landscape and weak margins from connected products. These factors weighed upon the company’s third-quarter 2017 results, wherein both top and bottom lines declined year over year. Also, management expects these headwinds to linger in 2017, which is clear from its dismal outlook. Nonetheless, the company is undertaking significant efforts to expand its wearables category, given the rising demand for tech-savvy watches. Also, it remains focused on its New World Fossil plan, which aims to bring a transformation, fuel efficiencies, improve margins and enhance the overall operating structure of the business to drive profitability.”
Several other brokerages also recently commented on FOSL. Bank of America Corporation set a $7.00 target price on shares of Fossil Group and gave the stock a “sell” rating in a report on Wednesday, August 9th. Telsey Advisory Group reduced their target price on shares of Fossil Group from $13.00 to $11.00 and set a “market perform” rating for the company in a report on Wednesday, August 9th. Buckingham Research reduced their target price on shares of Fossil Group from $10.00 to $9.00 and set a “neutral” rating for the company in a report on Wednesday, August 9th. ValuEngine downgraded shares of Fossil Group from a “buy” rating to a “hold” rating in a report on Tuesday, August 1st. Finally, Wells Fargo & Company reaffirmed an “underperform” rating and set a $8.00 target price on shares of Fossil Group in a report on Thursday, August 3rd. Five investment analysts have rated the stock with a sell rating, eleven have given a hold rating and three have given a buy rating to the company’s stock. Fossil Group has a consensus rating of “Hold” and an average price target of $15.43.
Shares of Fossil Group (FOSL) traded up $0.92 during mid-day trading on Friday, hitting $6.60. 4,869,500 shares of the company traded hands, compared to its average volume of 2,277,020. The company has a market cap of $320.28, a P/E ratio of 8.05 and a beta of 0.77. The company has a quick ratio of 1.09, a current ratio of 2.32 and a debt-to-equity ratio of 0.68. Fossil Group has a 1-year low of $5.50 and a 1-year high of $36.87.
Fossil Group (NASDAQ:FOSL) last announced its earnings results on Tuesday, November 7th. The accessories brand company reported $0.04 EPS for the quarter, topping the consensus estimate of ($0.28) by $0.32. The business had revenue of $689.00 million during the quarter, compared to the consensus estimate of $649.87 million. Fossil Group had a negative net margin of 12.33% and a positive return on equity of 4.75%. Fossil Group’s revenue was down 6.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.36 EPS. equities research analysts anticipate that Fossil Group will post -0.17 earnings per share for the current fiscal year.
In other news, VP John A. White bought 13,000 shares of the company’s stock in a transaction dated Wednesday, August 23rd. The stock was bought at an average cost of $7.26 per share, for a total transaction of $94,380.00. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Gregory A. Mckelvey bought 110,000 shares of the company’s stock in a transaction dated Friday, November 10th. The stock was purchased at an average price of $6.22 per share, with a total value of $684,200.00. The disclosure for this purchase can be found here. Insiders bought a total of 192,147 shares of company stock valued at $1,329,006 over the last 90 days. Corporate insiders own 12.80% of the company’s stock.
Large investors have recently modified their holdings of the company. Shell Asset Management Co. acquired a new position in Fossil Group during the 3rd quarter worth approximately $652,000. Northwestern Mutual Investment Management Company LLC acquired a new position in Fossil Group during the 2nd quarter worth approximately $204,000. Acadian Asset Management LLC acquired a new position in Fossil Group during the 2nd quarter worth approximately $113,000. GSA Capital Partners LLP acquired a new position in Fossil Group during the 2nd quarter worth approximately $120,000. Finally, Campbell & CO Investment Adviser LLC acquired a new position in Fossil Group during the 2nd quarter worth approximately $122,000.
Fossil Group Company Profile
Fossil Group, Inc is a design, marketing and distribution company that specializes in consumer fashion accessories. The Company’s segments include Americas, Europe and Asia. Each segment includes sales to wholesale and distributor customers, and sales through the Company-owned retail stores and e-commerce activities based on the location of the selling entity.
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