The Michaels Companies, Inc. (MIK) Shares Are Getting Muted

The Michaels Companies, Inc. (NASDAQ:MIK) stock ended December 06, 2018 with a fresh -0.61% decline. It was last seen at $16.32, claiming a stock-market value of $2.82B. The price went up as high as $17.2723 but also was $15.4 at one point in the session. Trading activity significantly improved as the volume at ready counter increased to 5,527,469 shares versus 2,307,420 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,347,987 shares. The stock is now 10.12% above against its bear-market low of $14.82 on October 05, 2018. It has retreated -70.77% since it’s 52-week high of $27.87 reached in January. Now the market price is down -23.74% on the year and down -32.53% YTD.

MIK’s 50 day simple moving average (SMA 50) price is $16.47 and its 200-day simple moving average (SMA 200) price is $18.81. The company’s stock currently has a total float of 118.13M shares. Its weekly volatility is hovering around 5.49% and felt 3.97% volatility in price over a month. On the upside, the share price will test short term resistance at around $17.26. On a downside, the stock is likely to find some support, which begins at $15.39. The failure to get near-term support could push it to $14.46.

Separately, it has been reported that multiple insider activity took place at The Michaels Companies, Inc. (MIK). Chairman & CEO Rubin Carl sold 220,930 shares for $256,093 in transaction occurred on 2018/01/26. After making this transaction, the Chairman & CEO owns a direct stake of 5,998,250 shares, worth $4,179,438, as per the last closing price. On 2017/03/28 Sonsteby Charles M, Vice Chairman at MIK, dumped 80,566 shares at an average price of $22.12 per share. The selling total is valued at $926,062.

Vice Chairman, Sonsteby Charles M had divested 38,754 shares for $56,744 through a trade on 2017/03/09. Following this activity, the insider holds 857,238 shares worth $926,062 as of recent close. Wall Street’s most bullish The Michaels Companies, Inc. (NASDAQ:MIK) analysts are predicting the share price to blow past $27 per share during the next 12 months. The current median share price forecast by them is $21.5, suggesting that the stock could increase 31.74% in that time frame. The average price target of $21.83 calls for a nearly 33.76% increase in the stock price.

It had seen a change in price target from analysts at Telsey Advisory Group, who reiterated the stock at Outperform on June 15 but moved PT from $26 to $23. Analysts at Wells Fargo, started covering the stock on April 24 with a Market Perform rating. Brokerage firm Telsey Advisory Group, looks cautious as they stick to prior recommendation of Outperform, in a call on March 22. However, they did change the target price from $32 to $26. Loop Capital, released new analyst coverage on March 02, calling the stock is Hold.

When looking at valuations, The Michaels Companies, Inc. (MIK) has a cheap P/E of 8.61x as compared to industry average of 33.86x. Moreover, it trades for 6.53 times the next 12 months of expected earnings. Compared to others, The Michaels Companies, Inc. is in a different league with regards to profitability, having net margins of 6.3%. To put some perspective around this, the industry’s average net margin is 0.65%. MIK’s ROE is -20.9%, which is also considerably worse than the industry’s ROE of 14.96%. It’s also very liquid in the near term, with a current ratio of 1.5. The stock has a debt/capital of 0.

Shares of The Michaels Companies, Inc. (MIK) have dropped -17.8% since the company’s Jan-18 earnings report. Over the past 12 fiscal quarters, The Michaels Companies, Inc. (NASDAQ:MIK) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 3 quarters (25%), whereas at 2 occasion EPS met analyst expectations. MIK last reported earnings on August 30, 2018 when it released Jul-18 results that exceeded expectations. The company raked in $0.15 per share, -98.87% change on the same period last year. That was better than consensus for $0.13. Revenue for the recent quarter stood at $1.05 billion, down -2% on last year and below the $1.06 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.86 billion to $1.9 billion, which should be compared with $0 generated last year.