Zacks Investment Research upgraded shares of Fossil Group (NASDAQ:FOSL) from a sell rating to a hold rating in a research report report published on Tuesday morning.
According to Zacks, “Fossil has underperformed the industry in the past year owing to persistent softness in traditional watch category and lackluster performance of leather and jewelry business across all regions. Further, the company’s gross margin has been strained for a year now owing to intense promotions amid a tough retail landscape and weak margins from connected products. These factors weighed upon the company’s third-quarter 2017 results, wherein both top and bottom lines declined year over year. Also, management expects these headwinds to linger in 2017, which is clear from its dismal outlook. Nonetheless, the company is undertaking significant efforts to expand its wearables category, given the rising demand for tech-savvy watches. Also, it remains focused on its New World Fossil plan, which aims to bring a transformation, fuel efficiencies and improve margins.”
A number of other brokerages have also recently commented on FOSL. Piper Jaffray Companies set a $10.00 target price on Fossil Group and gave the company a hold rating in a report on Thursday, October 12th. Buckingham Research cut Fossil Group from a neutral rating to an underperform rating in a report on Friday, January 5th. Bank of America cut their price target on Fossil Group from $7.00 to $4.00 and set an underperform rating for the company in a report on Wednesday, November 8th. Finally, ValuEngine cut Fossil Group from a buy rating to a hold rating in a report on Thursday, November 9th. Five investment analysts have rated the stock with a sell rating, eleven have issued a hold rating and one has issued a buy rating to the company’s stock. Fossil Group currently has an average rating of Hold and a consensus target price of $11.35.
Shares of Fossil Group (NASDAQ FOSL) traded up $0.55 during trading on Tuesday, hitting $9.38. The company’s stock had a trading volume of 1,612,815 shares, compared to its average volume of 1,770,000. Fossil Group has a fifty-two week low of $5.50 and a fifty-two week high of $26.78. The firm has a market capitalization of $455.19, a PE ratio of -1.30 and a beta of 0.75. The company has a quick ratio of 1.09, a current ratio of 2.32 and a debt-to-equity ratio of 0.68.
Fossil Group (NASDAQ:FOSL) last announced its earnings results on Tuesday, November 7th. The accessories brand company reported $0.04 EPS for the quarter, beating analysts’ consensus estimates of ($0.28) by $0.32. Fossil Group had a positive return on equity of 4.75% and a negative net margin of 12.33%. The business had revenue of $689.00 million during the quarter, compared to analysts’ expectations of $649.87 million. During the same quarter in the prior year, the firm earned $0.36 earnings per share. The business’s revenue was down 6.6% compared to the same quarter last year. equities analysts forecast that Fossil Group will post -0.22 EPS for the current fiscal year.
In other Fossil Group news, EVP Martin Frey acquired 7,500 shares of the stock in a transaction that occurred on Wednesday, November 22nd. The stock was bought at an average cost of $7.41 per share, for a total transaction of $55,575.00. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Gregory A. Mckelvey acquired 110,000 shares of the stock in a transaction that occurred on Friday, November 10th. The stock was acquired at an average price of $6.22 per share, with a total value of $684,200.00. The disclosure for this purchase can be found here. 12.80% of the stock is currently owned by company insiders.
Institutional investors have recently modified their holdings of the stock. Shell Asset Management Co. purchased a new position in Fossil Group in the third quarter worth approximately $652,000. Northwestern Mutual Investment Management Company LLC purchased a new position in Fossil Group in the second quarter worth approximately $204,000. GSA Capital Partners LLP purchased a new position in Fossil Group in the second quarter worth approximately $120,000. BlueCrest Capital Management Ltd purchased a new position in Fossil Group in the second quarter worth approximately $130,000. Finally, KBC Group NV grew its position in Fossil Group by 167.9% in the third quarter. KBC Group NV now owns 13,441 shares of the accessories brand company’s stock worth $125,000 after acquiring an additional 8,424 shares during the period. Institutional investors own 91.83% of the company’s stock.
About Fossil Group
Fossil Group, Inc is a design, marketing and distribution company that specializes in consumer fashion accessories. The Company’s segments include Americas, Europe and Asia. Each segment includes sales to wholesale and distributor customers, and sales through the Company-owned retail stores and e-commerce activities based on the location of the selling entity.
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