Skechers USA (NYSE:SKX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Wednesday. The firm presently has a $32.00 price target on the textile maker’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 22.14% from the stock’s previous close.
According to Zacks, “Greater emphasis on new line of products, cost containment efforts, inventory management and global distribution platform have been aiding Skechers. The company reversed the preceding quarter’s earnings miss with a beat in the third quarter of 2018. Management also provided an upbeat view for the final quarter, despite the year-over-year earnings decline and top-line miss. The sluggish domestic wholesale business performance was compensated by double-digit increase in both international wholesale and global company-owned retail businesses. Skechers’ domestic e-commerce business also continues to gain traction. Management now expects both the top and bottom lines to increase year over year during the final quarter. However, higher general & administrative expenses remain a concern. Although, the stock has declined in the past three months, we expect the aforementioned drivers to help it revive in the near-term.”
Several other research analysts also recently weighed in on the stock. ValuEngine downgraded shares of Skechers USA from a “hold” rating to a “sell” rating in a report on Tuesday, November 20th. Citigroup lowered their price objective on shares of Skechers USA from $30.00 to $29.00 and set a “neutral” rating on the stock in a report on Monday, October 22nd. Wells Fargo & Co set a $30.00 price objective on shares of Skechers USA and gave the stock a “hold” rating in a report on Friday, October 19th. B. Riley set a $45.00 price objective on shares of Skechers USA and gave the stock a “buy” rating in a report on Friday, October 19th. Finally, Buckingham Research lowered their price objective on shares of Skechers USA from $35.00 to $30.00 and set a “buy” rating on the stock in a report on Wednesday, October 17th. Two 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 stock. The company has a consensus rating of “Hold” and an average price target of $32.49.
Skechers USA stock opened at $26.20 on Wednesday. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.29 and a current ratio of 3.43. Skechers USA has a 12-month low of $23.80 and a 12-month high of $43.08. The firm has a market cap of $4.20 billion, a P/E ratio of 14.72, a P/E/G ratio of 2.05 and a beta of 0.32.
Skechers USA (NYSE:SKX) last released its earnings results on Thursday, October 18th. The textile maker reported $0.58 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.51 by $0.07. Skechers USA had a net margin of 4.13% and a return on equity of 13.81%. The company had revenue of $1.18 billion for the quarter, compared to the consensus estimate of $1.22 billion. During the same quarter in the previous year, the company earned $0.59 EPS. Skechers USA’s quarterly revenue was up 7.5% compared to the same quarter last year. On average, equities research analysts expect that Skechers USA will post 1.85 EPS for the current fiscal year.
In other news, President Michael Greenberg sold 75,630 shares of the company’s stock in a transaction on Friday, November 2nd. The shares were sold at an average price of $29.28, for a total value of $2,214,446.40. Following the completion of the sale, the president now owns 593,309 shares in the company, valued at approximately $17,372,087.52. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 27.88% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of SKX. US Bancorp DE grew its position in Skechers USA by 169.5% during the second quarter. US Bancorp DE now owns 4,069 shares of the textile maker’s stock valued at $122,000 after buying an additional 2,559 shares during the period. First Mercantile Trust Co. bought a new position in Skechers USA during the third quarter valued at about $139,000. NuWave Investment Management LLC grew its position in Skechers USA by 92.2% during the third quarter. NuWave Investment Management LLC now owns 5,011 shares of the textile maker’s stock valued at $140,000 after buying an additional 2,404 shares during the period. NumerixS Investment Technologies Inc bought a new position in Skechers USA during the second quarter valued at about $141,000. Finally, Strs Ohio bought a new position in Skechers USA during the second quarter valued at about $184,000. Hedge funds and other institutional investors own 74.28% of the company’s stock.
Skechers USA Company Profile
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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