Chico’s FAS, Inc. (NYSE:CHS) is rated as Underperform by analysts at BofA/Merrill. The firm was pushed by the stock performance to change their PT view from $6.50 to $4 on November 29. Analysts at RBC Capital Mkts, shed their positive views on November 29 by lowering it fromOutperform to Sector Perform. Brokerage firm Telsey Advisory Group, looks cautious as they stick to prior recommendation of Market Perform, in a call on May 31. However, they did change the target price from $11 to $9.
Chico’s FAS, Inc. (CHS) hit an intraday high Friday at $6.37. The shares finished at $6.18, after trading as low as $5.96 earlier in the session. It rose 4.22% in recent trade and currently has a stock-market value of $745.62M. Trading activity significantly improved as the volume at ready counter increased to 9,468,086 shares versus 4,575,200 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 4,818,337 shares. The stock is now 39.82% above against its bear-market low of $4.42 on November 28, 2018. It has retreated -76.38% since it’s 52-week high of $10.9 reached in May. Now the market price is down -29.69% on the year and up 9.96% YTD.
CHS’s 50 day simple moving average (SMA 50) price is $6.5 and its 200-day simple moving average (SMA 200) price is $8.36. The company’s stock currently has a total float of 120.65M shares. Its weekly volatility is hovering around 6.16% and felt 5.97% volatility in price over a month. On the upside, the share price will test short term resistance at around $6.38. On a downside, the stock is likely to find some support, which begins at $5.97. The failure to get near-term support could push it to $5.76.
Separately, it has been reported that multiple insider activity took place at Chico’s FAS, Inc. (CHS). SVP & General Counsel Baker Gregory S acquired 2,000 shares for $24,509 in transaction occurred on 2018/11/29. After making this transaction, the SVP & General Counsel owns a direct stake of 9,900 shares, worth $151,466, as per the last closing price. On 2017/06/12 Roeder Ross E, Director at CHS, dumped 10,000 shares at an average price of $9.75 per share. The selling total is valued at $675,641.
Director, Roeder Ross E had divested 5,000 shares for $119,327 through a trade on 2017/06/01. Following this activity, the insider holds 47,500 shares worth $737,441 as of recent close. Wall Street’s most bullish Chico’s FAS, Inc. (NYSE:CHS) analysts are predicting the share price to blow past $7 per share during the next 12 months. The current median share price forecast by them is $5, suggesting that the stock could increase -19.09% in that time frame. The average price target of $5.2 calls for a nearly -15.86% increase in the stock price.
When looking at valuations, Chico’s FAS, Inc. (CHS) has a cheap P/E of 12.07x as compared to industry average of 34.92x. Moreover, it trades for 22.31 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.16x price/book and 0.34x price/sales. Compared to others, Chico’s FAS, Inc. is in a different league with regards to profitability, having net margins of 3.6%. To put some perspective around this, the industry’s average net margin is 3.42%. CHS’s ROE is 12.1%, which is also considerably worse than the industry’s ROE of 12.11%. It’s also very liquid in the near term, with a current ratio of 2. The stock has a debt/capital of 0.09.
Shares of Chico’s FAS, Inc. (CHS) have dropped -15.6% since the company’s Apr-19 earnings report. Over the past 12 fiscal quarters, Chico’s FAS, Inc. (NYSE:CHS) has topped consensus earnings estimates in 6 quarters (50%), missed earnings in 5 quarters (41%), whereas at 1 occasion EPS met analyst expectations. CHS last reported earnings on November 28, 2018 when it released Oct-18 results that receded expectations. The company raked in $0.01 per share, -99.99% change on the same period last year. That was worse than consensus for $0.08. Revenue for the recent quarter stood at $499.88 million, down -6% on last year and below the $515.63 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $532 million to $534.74 million, which should be compared with $0 generated last year. EPS is seen in a range of $0.13 to $0.21, against the 0 reported a year ago.