Guggenheim reiterated their hold rating on shares of Ralph Lauren (NYSE:RL) in a research note released on Tuesday.
“We remain encouraged by progress being made to improve the health of the brand/business and the strong first half of FY19, but continue to believe RL has work ahead to improve its digital strategy, update brand perception, and rationalize distribution, including quality of sales initiatives globally and further off-price pullback ahead in North America. We believe today’s share price reflects much of the progress made to-date and remain NEUTRAL. In 2Q, revenue rose 1.6% to $1.69bn (vs. our -0.4% estimate), with solid improvement in comp trends QoQ in NA and Europe and strength in Asia, led by China. Total RL comps were flat in CC, improving from a 3% decline in 1Q. NA (+1% rev growth vs. our -3%) comps rose 1% in CC, with improvement in digital (+9% comp, from -2% in 1Q), reflecting traffic gains, and stores comp’d -1% (from -3% in 1Q), with a 3% AUR increase offsetting traffic declines.”,” Guggenheim’s analyst commented.
Other equities analysts also recently issued reports about the stock. Bank of America boosted their target price on shares of Ralph Lauren from $113.00 to $117.00 and gave the stock a sell rating in a research note on Wednesday, August 1st. Deutsche Bank assumed coverage on shares of Ralph Lauren in a research note on Monday, October 29th. They issued a buy rating and a $149.00 target price for the company. Buckingham Research boosted their target price on shares of Ralph Lauren from $130.00 to $138.00 and gave the stock a neutral rating in a research note on Thursday, August 16th. Credit Suisse Group lifted their price target on shares of Ralph Lauren from $153.00 to $156.00 and gave the stock an outperform rating in a research report on Wednesday, August 1st. Finally, Barclays lifted their price target on shares of Ralph Lauren from $114.00 to $118.00 and gave the stock an underweight rating in a research report on Wednesday, August 1st. Three investment analysts have rated the stock with a sell rating, ten have given a hold rating and five have given a buy rating to the company’s stock. The stock presently has a consensus rating of Hold and a consensus target price of $137.00.
Shares of RL stock opened at $127.79 on Tuesday. Ralph Lauren has a 12-month low of $83.91 and a 12-month high of $147.79. The stock has a market cap of $10.87 billion, a P/E ratio of 21.19, a PEG ratio of 2.09 and a beta of 0.68. The company has a quick ratio of 1.70, a current ratio of 2.27 and a debt-to-equity ratio of 0.08.
Ralph Lauren (NYSE:RL) last announced its quarterly earnings results on Tuesday, November 6th. The textile maker reported $2.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.16 by $0.10. Ralph Lauren had a net margin of 3.41% and a return on equity of 15.49%. The firm had revenue of $1.69 billion during the quarter, compared to the consensus estimate of $1.65 billion. During the same period last year, the firm posted $1.99 EPS. The firm’s quarterly revenue was up 1.6% on a year-over-year basis. On average, equities research analysts expect that Ralph Lauren will post 6.7 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Friday, October 12th. Stockholders of record on Friday, September 28th were given a dividend of $0.625 per share. This represents a $2.50 annualized dividend and a dividend yield of 1.96%. The ex-dividend date of this dividend was Thursday, September 27th. Ralph Lauren’s dividend payout ratio is 41.46%.
In other Ralph Lauren news, Director Michael A. George purchased 1,815 shares of the stock in a transaction dated Thursday, August 9th. The stock was bought at an average price of $137.72 per share, for a total transaction of $249,961.80. Following the transaction, the director now directly owns 2,897 shares in the company, valued at $398,974.84. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 32.49% of the stock is owned by insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of RL. IFM Investors Pty Ltd acquired a new position in Ralph Lauren during the second quarter valued at approximately $262,000. Empowered Funds LLC acquired a new position in Ralph Lauren during the second quarter valued at approximately $1,466,000. Contravisory Investment Management Inc. grew its holdings in Ralph Lauren by 39.6% during the second quarter. Contravisory Investment Management Inc. now owns 4,734 shares of the textile maker’s stock valued at $595,000 after purchasing an additional 1,344 shares during the period. NN Investment Partners Holdings N.V. grew its holdings in Ralph Lauren by 25.9% during the second quarter. NN Investment Partners Holdings N.V. now owns 10,068 shares of the textile maker’s stock valued at $1,266,000 after purchasing an additional 2,068 shares during the period. Finally, Atria Investments LLC acquired a new position in Ralph Lauren during the second quarter valued at approximately $240,000. Hedge funds and other institutional investors own 69.95% of the company’s stock.
Ralph Lauren Company Profile
Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. It offers apparel, including a range of men's, women's, and children's clothing accessories, which comprise footwear, eyewear, watches, fashion and fine jewelry, hats, gloves, umbrellas, belts, and leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bedding and bath products, furniture, fabrics and wallpapers, lightings, tabletops, floorcoverings, and giftware; and fragrances.
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