Skechers USA (SKX) Raised to “Buy” at Zacks Investment Research
Skechers USA (NYSE:SKX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Monday. The firm presently has a $46.00 target price on the textile maker’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 14.57% from the stock’s current price.
According to Zacks, “Greater emphasis on new line of products, cost containment efforts, inventory management and global distribution platform has helped lift Skechers’ performance. The company delivered positive earnings surprise in the final quarter of 2017, marking the second straight successive beat. Notably, the spectacular performance in the back-to-back quarters has led the stock to outpace the industry in the past six months. Net sales also beat the estimate for the fifth quarter in row gaining from solid performances at the international wholesale business, company-owned global retail business and domestic wholesale business. Skechers’ domestic e-commerce business, which also contributed to sales growth, continues to gain traction. Management now expects both the top and bottom lines to increase year over year during the first quarter of 2018. However, higher general & administrative expenses remain a concern.”
A number of other brokerages also recently weighed in on SKX. ValuEngine raised shares of Skechers USA from a “hold” rating to a “buy” rating in a report on Friday, February 2nd. Cowen set a $36.00 price target on shares of Skechers USA and gave the company a “buy” rating in a report on Friday, October 20th. Vetr raised shares of Skechers USA from a “sell” rating to a “hold” rating and set a $39.03 price target for the company in a report on Tuesday, January 30th. B. Riley set a $50.00 price objective on shares of Skechers USA and gave the company a “buy” rating in a research note on Tuesday, February 6th. Finally, Citigroup upped their price objective on shares of Skechers USA from $45.00 to $50.00 and gave the company a “buy” rating in a research note on Friday, February 9th. Two analysts have rated the stock with a sell rating, four have given a hold rating and twelve have assigned a buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average price target of $41.34.
Skechers USA (NYSE:SKX) last issued its quarterly earnings results on Thursday, February 8th. The textile maker reported $0.21 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.13 by $0.08. Skechers USA had a net margin of 4.30% and a return on equity of 14.63%. The company had revenue of $970.59 million during the quarter, compared to the consensus estimate of $881.39 million. During the same period in the prior year, the company earned $0.04 EPS. Skechers USA’s revenue was up 27.0% on a year-over-year basis. equities research analysts anticipate that Skechers USA will post 2.27 earnings per share for the current fiscal year.
Skechers USA announced that its board has approved a share repurchase plan on Thursday, February 8th that permits the company to buyback $150.00 million in shares. This buyback authorization permits the textile maker to purchase shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.
In other news, CEO Robert Greenberg sold 500,000 shares of the company’s stock in a transaction dated Wednesday, December 20th. The stock was sold at an average price of $37.66, for a total value of $18,830,000.00. Following the transaction, the chief executive officer now owns 267,713 shares in the company, valued at approximately $10,082,071.58. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Richard Rappaport sold 1,000 shares of the company’s stock in a transaction dated Friday, December 22nd. The shares were sold at an average price of $38.24, for a total value of $38,240.00. Following the completion of the transaction, the director now owns 19,000 shares in the company, valued at approximately $726,560. The disclosure for this sale can be found here. Insiders have sold 580,750 shares of company stock valued at $21,665,988 over the last ninety days. Insiders own 38.20% of the company’s stock.
Several institutional investors and hedge funds have recently modified their holdings of SKX. PNC Financial Services Group Inc. increased its holdings in shares of Skechers USA by 6.6% in the 2nd quarter. PNC Financial Services Group Inc. now owns 5,428 shares of the textile maker’s stock valued at $161,000 after purchasing an additional 335 shares during the period. Northern Trust Corp increased its holdings in shares of Skechers USA by 0.4% in the 2nd quarter. Northern Trust Corp now owns 1,116,692 shares of the textile maker’s stock valued at $32,943,000 after purchasing an additional 4,973 shares during the period. Dimensional Fund Advisors LP increased its holdings in shares of Skechers USA by 9.7% in the 2nd quarter. Dimensional Fund Advisors LP now owns 1,844,216 shares of the textile maker’s stock valued at $54,403,000 after purchasing an additional 162,641 shares during the period. AHL Partners LLP acquired a new position in shares of Skechers USA in the 2nd quarter valued at about $317,000. Finally, Royal Bank of Canada increased its holdings in shares of Skechers USA by 14.8% in the 2nd quarter. Royal Bank of Canada now owns 49,048 shares of the textile maker’s stock valued at $1,448,000 after purchasing an additional 6,341 shares during the period. Institutional investors own 68.59% of the company’s stock.
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About Skechers USA
Skechers U.SA, Inc is a designer and marketer of Skechers-branded lifestyle footwear for men, women and children, and performance footwear for men and women under the Skechers GO brand name. The Company operates through three segments: domestic wholesale sales, international wholesale sales, and retail sales, which includes e-commerce sales.
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