The Children’s Place, Inc. (PLCE) May Be Tasty For Bottom-Feeding Investors

President and CEO Elfers Jane T sold 100,000 shares in The Children’s Place, Inc. (NASDAQ:PLCE) for $141,491 in transaction occurred on 2018/08/27. After making this transaction, the President and CEO owns a direct stake of 13,493,000 shares, worth $15,092,845, as per the last closing price. On 2018/05/31 Pruthi Anurup, SVP, CHIEF FINANCIAL OFFICER at PLCE, dumped 14,512 shares at an average price of $128.39 per share. The selling total is valued at $1,676,959.

Separately, it had been reported that some other PLCE insiders also took part of the insider trading activity. SVP, GEN COUNSEL & SECRETARY, Cost Bradley P had divested 10,113 shares for $13,823 through a trade on 2018/05/31. Following this activity, the insider holds 1,298,105 shares worth $1,474,499 as of recent close. Wall Street’s most bullish The Children’s Place, Inc. (NASDAQ:PLCE) analysts are predicting the share price to blow past $170 per share during the next 12 months. The current median share price forecast by them is $167, suggesting that the stock could increase 56.56% in that time frame. The average price target of $164 calls for a nearly 53.75% increase in the stock price.

The Children’s Place, Inc. (PLCE) trading activity significantly improved as the volume at ready counter increased to 3,107,228 shares versus 650,160 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 567,981 shares. The share price dropped -13.38% in recent trade and currently has a stock-market value of $1.74B. The shares finished at $106.67, after trading as low as $99.5401 earlier in the session. It hit an intraday high Thursday at $108.47. The stock is now -5.22% above against its bear-market low of $112.55 on December 06, 2018. It has retreated -51.54% since it’s 52-week high of $161.65 reached in January. Now the market price is down -20.34% on the year and down -26.61% YTD.

PLCE’s 50 day simple moving average (SMA 50) price is $134.69 and its 200-day simple moving average (SMA 200) price is $131.33. The company’s stock currently has a total float of 16M shares. Its weekly volatility is hovering around 5.04% and felt 4.17% volatility in price over a month. On the upside, the share price will test short term resistance at around $110.25. On a downside, the stock is likely to find some support, which begins at $101.32. The failure to get near-term support could push it to $95.96.

It had seen a change in price target from analysts at Wolfe Research, who reiterated the stock at Peer Perform on December 06 but moved PT from $169 to $135. Analysts at BofA/Merrill, shed their negative views on October 02 by lifting it fromUnderperform to Neutral. The stock won favor of Monness Crespi & Hardt analysts who expressed their confidence in it using an upgrade from Neutral to Buy on August 24.

When looking at valuations, The Children’s Place, Inc. (PLCE) has a cheap P/E of 15.07x as compared to industry average of 30.76x. Moreover, it trades for 10.86 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 5.49x price/book and 0.89x price/sales. Compared to others, The Children’s Place, Inc. is in a different league with regards to profitability, having net margins of 3.8%. To put some perspective around this, the industry’s average net margin is 6.42%. PLCE’s ROE is 17.7%, which is also considerably better than the industry’s ROE of 17.01%. It’s also very liquid in the near term, with a current ratio of 1.3. The stock has a debt/capital of 0.28.

Shares of The Children’s Place, Inc. (PLCE) have dropped -10.4% since the company’s Jan-18 earnings report. Over the past 12 fiscal quarters, The Children’s Place, Inc. (NASDAQ:PLCE) has topped consensus earnings estimates in 11 quarters (91%), missed earnings in 1 quarters (8%), whereas at 0 occasion EPS met analyst expectations. PLCE last reported earnings on August 23, 2018 when it released Jul-18 results that exceeded expectations. The company raked in $0.7 per share, -96.43% change on the same period last year. That was better than consensus for $0.59. Revenue for the recent quarter stood at $448.72 million, up 20% on last year and above the $427.89 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $562 million to $584 million, which should be compared with $0 generated last year.