Zacks Investment Research cut shares of Skechers USA (NYSE:SKX) from a hold rating to a sell rating in a report published on Tuesday morning.

According to Zacks, “Shares of Skechers have slid and underperformed the industry in the past six months. This may be attributed to the year-over-year earnings per share decline and top-line miss during third-quarter 2018. Also, sluggish domestic wholesale business performance hurt investor sentiment. Moreover, higher general & administrative expenses remain a concern. Nevertheless, Skechers’ is emphasizing on new line of products, cost containment efforts, inventory management and global distribution platform. Skechers’ posted double-digit increase in both international wholesale and global company-owned retail businesses. The company delivered earnings beat in the third quarter which encouraged management to provide an upbeat view for the final quarter. Management now expects both the top and bottom lines to increase year over year during the final quarter. Further, Skechers’ domestic e-commerce business continues to gain traction.”

Other research analysts have also issued research reports about the company. Wells Fargo & Co set a $30.00 price target on Skechers USA and gave the stock a hold rating in a research report on Friday, October 19th. ValuEngine lowered Skechers USA from a hold rating to a sell rating in a report on Tuesday, November 20th. Citigroup decreased their target price on Skechers USA from $30.00 to $29.00 and set a neutral rating on the stock in a report on Monday, October 22nd. Stifel Nicolaus assumed coverage on Skechers USA in a report on Monday, December 17th. They set a buy rating and a $32.00 target price on the stock. Finally, OTR Global lowered Skechers USA to a positive rating in a report on Tuesday, October 9th. Three investment analysts have rated the stock with a sell rating, eight have issued a hold rating and six have assigned a buy rating to the company. Skechers USA currently has an average rating of Hold and an average target price of $31.62.

Shares of NYSE:SKX traded up $0.63 during trading on Tuesday, hitting $25.53. 83,205 shares of the company were exchanged, compared to its average volume of 2,127,238. The firm has a market capitalization of $3.94 billion, a price-to-earnings ratio of 14.32, a price-to-earnings-growth ratio of 1.83 and a beta of 0.56. Skechers USA has a fifty-two week low of $21.45 and a fifty-two week high of $43.08. The company has a quick ratio of 2.29, a current ratio of 3.43 and a debt-to-equity ratio of 0.03.

Skechers USA (NYSE:SKX) last posted its quarterly earnings results on Thursday, October 18th. The textile maker reported $0.58 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.51 by $0.07. The firm had revenue of $1.18 billion for the quarter, compared to analyst estimates of $1.22 billion. Skechers USA had a return on equity of 13.81% and a net margin of 4.13%. The business’s quarterly revenue was up 7.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.59 EPS. As a group, analysts anticipate that Skechers USA will post 1.85 earnings per share for the current year.

In other news, President Michael Greenberg sold 75,630 shares of the company’s stock in a transaction on Friday, November 2nd. The stock was sold at an average price of $29.28, for a total transaction of $2,214,446.40. Following the completion of the sale, the president now directly owns 593,309 shares in the company, valued at approximately $17,372,087.52. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders own 27.88% of the company’s stock.

Large investors have recently added to or reduced their stakes in the company. BlackRock Inc. lifted its position in shares of Skechers USA by 1.9% during the 2nd quarter. BlackRock Inc. now owns 13,107,423 shares of the textile maker’s stock worth $393,355,000 after buying an additional 244,350 shares during the last quarter. Bank of New York Mellon Corp lifted its position in shares of Skechers USA by 335.3% during the 3rd quarter. Bank of New York Mellon Corp now owns 6,604,345 shares of the textile maker’s stock worth $184,459,000 after buying an additional 5,087,296 shares during the last quarter. Federated Investors Inc. PA lifted its position in shares of Skechers USA by 12.7% during the 2nd quarter. Federated Investors Inc. PA now owns 89,515 shares of the textile maker’s stock worth $2,687,000 after buying an additional 10,118 shares during the last quarter. First Mercantile Trust Co. bought a new stake in shares of Skechers USA during the 3rd quarter worth $139,000. Finally, Vanguard Group Inc increased its holdings in Skechers USA by 2.1% in the 3rd quarter. Vanguard Group Inc now owns 11,745,336 shares of the textile maker’s stock worth $328,049,000 after purchasing an additional 239,133 shares in the last quarter. Hedge funds and other institutional investors own 74.26% of the company’s stock.

About Skechers USA

Skechers U.SA, Inc designs, develops, markets, and distributes footwear for men, women, and children; and performance footwear for men and women under the Skechers GO brand worldwide. It operates through three segments: Domestic Wholesale Sales, International Wholesale Sales, and Retail Sales. The company offers casual boots, shoes, and sandals for men; shoes, oxfords and slip-ons, lug outsole and fashion boots, and casual sandals for women; dress casuals, seasonal sandals and boots, classic and wide fit, and relaxed fit casuals for men and women; and casual athletic line for men and women under the Skechers USA brand.

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