Zacks Investment Research Downgrades Coach, Inc. (NYSE:COH) to Strong Sell

Coach, Inc. (NYSE:COH) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued on Tuesday, October 17th.

According to Zacks, “In the past three months, Coach has exhibited a bearish run. In fact, the stock came under pressure after the company came out with its fourth-quarter fiscal 2017 results, wherein top line fell short of the Zacks Consensus Estimate for the fourth quarter in row and continued to decline year over year. Even earnings beat for the 14th straight quarter failed to provide cushion to the stock. Analysts pointed that not so encouraging outlook for fiscal 2018, in spite of Kate Spade buyout, also dampened investors’ mood. Well we believe this may be short lived as Coach looks much more disciplined in its approach in becoming a multi-brand company and adapt to the changing retail landscape with transformational initiatives revolving around products, stores and marketing. Coach also registered positive comps at its North American segment for the fifth consecutive quarter and sees growth prospects in China, Japan and Europe.”



COH has been the subject of a number of other reports. Vetr lowered Coach from a “hold” rating to a “sell” rating and set a $45.98 price objective for the company. in a report on Monday, August 7th. Buckingham Research set a $48.00 price target on Coach and gave the company a “buy” rating in a research note on Friday, October 6th. Cowen and Company reaffirmed a “buy” rating and set a $46.00 price target on shares of Coach in a research note on Thursday, September 28th. Piper Jaffray Companies downgraded Coach from an “overweight” rating to a “neutral” rating and cut their price objective for the company from $48.00 to $43.00 in a research report on Thursday, October 5th. Finally, UBS AG cut their price objective on Coach from $55.00 to $50.00 and set a “buy” rating for the company in a research report on Thursday, August 17th. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating and twenty-one have given a buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average price target of $47.17.

Coach (NYSE:COH) traded down 0.607% during trading on Tuesday, reaching $40.145. The company’s stock had a trading volume of 1,127,402 shares. The stock has a 50 day moving average price of $40.14 and a 200 day moving average price of $43.56. Coach has a 1-year low of $34.16 and a 1-year high of $48.85. The stock has a market capitalization of $11.34 billion, a PE ratio of 19.208 and a beta of 0.44.

Coach (NYSE:COH) last issued its quarterly earnings data on Tuesday, August 15th. The luxury accessories retailer reported $0.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.49 by $0.01. Coach had a return on equity of 21.31% and a net margin of 13.17%. The business had revenue of $1.13 billion during the quarter, compared to analyst estimates of $1.15 billion. During the same period in the prior year, the company posted $0.45 EPS. The business’s revenue for the quarter was down 1.8% compared to the same quarter last year. Analysts anticipate that Coach will post $2.37 earnings per share for the current fiscal year.

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In related news, SVP Melinda Brown sold 8,250 shares of the company’s stock in a transaction dated Tuesday, September 12th. The shares were sold at an average price of $41.28, for a total value of $340,560.00. Following the transaction, the senior vice president now owns 42,884 shares in the company, valued at approximately $1,770,251.52. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CAO Todd Kahn sold 4,586 shares of the company’s stock in a transaction dated Wednesday, August 23rd. The shares were sold at an average price of $40.85, for a total transaction of $187,338.10. Following the completion of the transaction, the chief accounting officer now owns 72,412 shares in the company, valued at approximately $2,958,030.20. The disclosure for this sale can be found here. 0.98% of the stock is currently owned by corporate insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in COH. Assenagon Asset Management S.A. acquired a new position in Coach in the 3rd quarter valued at about $82,146,000. Franklin Resources Inc. grew its stake in Coach by 1,921.6% in the 2nd quarter. Franklin Resources Inc. now owns 1,483,000 shares of the luxury accessories retailer’s stock valued at $70,205,000 after buying an additional 1,409,643 shares during the last quarter. Vanguard Group Inc. grew its stake in Coach by 3.3% in the 2nd quarter. Vanguard Group Inc. now owns 28,909,152 shares of the luxury accessories retailer’s stock valued at $1,368,559,000 after buying an additional 926,068 shares during the last quarter. JPMorgan Chase & Co. grew its position in shares of Coach by 294.3% during the 2nd quarter. JPMorgan Chase & Co. now owns 1,216,832 shares of the luxury accessories retailer’s stock worth $57,607,000 after purchasing an additional 908,228 shares in the last quarter. Finally, Columbus Circle Investors acquired a new position in shares of Coach during the 2nd quarter worth approximately $31,413,000. Institutional investors and hedge funds own 85.53% of the company’s stock.

Coach Company Profile

Coach, Inc (Coach) is a design house of luxury accessories and lifestyle collections. The Company’s product offering uses a range of leathers, fabrics and materials. Its segments include North America, International and Stuart Weitzman. The North America segment includes sales of Coach brand products to North American customers through Coach-operated stores (including the Internet) and sales to North American wholesale customers.

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