Skechers U.S.A., Inc. (NYSE:SKX) has been downgraded by Citigroup on October 02 which now rates the stock as Neutral compared with Buy rating suggested in the past. Analysts at Morgan Stanley, started covering the stock on August 02 with a Equal-Weight rating. The stock lost favor of Argus analysts who expressed their lack of confidence in it using a downgrade from Buy to Hold on July 26. Standpoint Research analysts came out with bullish views on July 20 when the call was made. They think the stock is now Buy compared to to their prior call for Hold.
Skechers U.S.A., Inc. (SKX) hit an intraday high Tuesday at $28.4. The shares finished at $26.6, after trading as low as $26.54 earlier in the session. It dropped -6.04% in recent trade and currently has a stock-market value of $4.14B. Trading activity significantly improved as the volume at ready counter increased to 3,567,147 shares versus 2,029,980 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,999,087 shares. The stock is now 11.76% above against its bear-market low of $23.8 on July 20, 2018. It has retreated -61.95% since it’s 52-week high of $43.08 reached in April. Now the market price is down -24.39% on the year and down -29.7% YTD.
SKX’s 50 day simple moving average (SMA 50) price is $27.33 and its 200-day simple moving average (SMA 200) price is $31.04. The company’s stock currently has a total float of 133.76M shares. Its weekly volatility is hovering around 3.81% and felt 3.5% volatility in price over a month. On the upside, the share price will test short term resistance at around $27.82. On a downside, the stock is likely to find some support, which begins at $25.96. The failure to get near-term support could push it to $25.32.
Separately, it has been reported that multiple insider activity took place at Skechers U.S.A., Inc. (SKX). President Greenberg Michael sold 75,630 shares for $672,553 in transaction occurred on 2018/11/02. After making this transaction, the President owns a direct stake of 2,214,446 shares, worth $17,889,910, as per the last closing price. On 2018/09/04 Paccione Phillip, General Counsel & Secretary at SKX, dumped 650 shares at an average price of $29.65 per share. The selling total is valued at $798,000.
COO, Weinberg David had divested 25,210 shares for $183,283 through a trade on 2018/05/02. Following this activity, the insider holds 708,905 shares worth $4,875,328 as of recent close. Wall Street’s most bullish Skechers U.S.A., Inc. (NYSE:SKX) analysts are predicting the share price to blow past $45 per share during the next 12 months. The current median share price forecast by them is $30, suggesting that the stock could increase 12.78% in that time frame. The average price target of $32.55 calls for a nearly 22.37% increase in the stock price.
When looking at valuations, Skechers U.S.A., Inc. (SKX) has a cheap P/E of 15.12x as compared to industry average of 21.2x. Moreover, it trades for 13.28 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.05x price/book and 0.91x price/sales. Compared to others, Skechers U.S.A., Inc. is in a different league with regards to profitability, having net margins of 4.1%. To put some perspective around this, the industry’s average net margin is 7.49%. SKX’s ROE is 9.6%, which is also considerably worse than the industry’s ROE of 13.18%. It’s also very liquid in the near term, with a current ratio of 3.4. The stock has a debt/capital of 0.04.
Shares of Skechers U.S.A., Inc. (SKX) have gained 8.4% since the company’s last earnings report. Over the past 12 fiscal quarters, Skechers U.S.A., Inc. (NYSE:SKX) has topped consensus earnings estimates in 5 quarters (41%), missed earnings in 5 quarters (41%), whereas at 2 occasion EPS met analyst expectations. SKX last reported earnings on October 18, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.58 per share, -95.55% change on the same period last year. That was better than consensus for $0.51. Revenue for the recent quarter stood at $1.18 billion, up 7% on last year and below the $1.22 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.09 billion to $1.11 billion, which should be compared with $964.8 million generated last year. EPS is seen in a range of $0.21 to $0.25, against the $0.18 reported a year ago.