Ermenegildo Zegna (NYSE:ZGN) Shares Gap Up – Here’s Why

Ermenegildo Zegna N.V. (NYSE:ZGN)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $13.48, but opened at $14.00. Ermenegildo Zegna shares last traded at $13.52, with a volume of 409,934 shares trading hands.

Wall Street Analyst Weigh In

A number of brokerages recently commented on ZGN. UBS Group reiterated a “buy” rating and set a $14.50 price target on shares of Ermenegildo Zegna in a report on Friday, May 1st. The Goldman Sachs Group lowered Ermenegildo Zegna from a “buy” rating to a “neutral” rating and raised their target price for the company from $13.30 to $14.00 in a research report on Wednesday, June 17th. Wall Street Zen cut Ermenegildo Zegna from a “buy” rating to a “hold” rating in a research note on Sunday, June 21st. Weiss Ratings reissued a “hold (c)” rating on shares of Ermenegildo Zegna in a report on Monday, April 20th. Finally, TD Cowen upgraded shares of Ermenegildo Zegna from a “hold” rating to a “buy” rating and raised their price objective for the stock from $13.00 to $15.00 in a report on Wednesday, May 20th. Five equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $13.01.

Ermenegildo Zegna Price Performance

The company has a current ratio of 1.59, a quick ratio of 0.91 and a debt-to-equity ratio of 0.15. The firm has a fifty day simple moving average of $13.45 and a two-hundred day simple moving average of $11.57.

Ermenegildo Zegna Cuts Dividend

The company also recently declared an annual dividend, which will be paid on Wednesday, July 29th. Stockholders of record on Monday, July 6th will be given a dividend of $0.12 per share. This represents a dividend yield of 102.0%. The ex-dividend date of this dividend is Monday, July 6th.

Insider Transactions at Ermenegildo Zegna

In other Ermenegildo Zegna news, CEO Gianluca Ambrogio Tagliabue sold 19,105 shares of the company’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $13.12, for a total transaction of $250,657.60. Following the sale, the chief executive officer directly owned 167,720 shares of the company’s stock, valued at $2,200,486.40. This represents a 10.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Alessandro Sartori sold 6,505 shares of the stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $13.12, for a total transaction of $85,345.60. Following the transaction, the director owned 142,237 shares of the company’s stock, valued at $1,866,149.44. This represents a 4.37% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 31,378 shares of company stock worth $411,679. 1.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Millennium Management LLC grew its stake in Ermenegildo Zegna by 182.8% in the 1st quarter. Millennium Management LLC now owns 1,149,055 shares of the company’s stock valued at $8,503,000 after buying an additional 742,680 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of Ermenegildo Zegna by 22.7% in the first quarter. Goldman Sachs Group Inc. now owns 134,503 shares of the company’s stock worth $995,000 after acquiring an additional 24,862 shares during the period. Jane Street Group LLC purchased a new position in shares of Ermenegildo Zegna in the first quarter valued at $1,161,000. Geode Capital Management LLC bought a new stake in shares of Ermenegildo Zegna during the 2nd quarter valued at $6,245,000. Finally, JPMorgan Chase & Co. boosted its holdings in Ermenegildo Zegna by 59,691.8% in the 2nd quarter. JPMorgan Chase & Co. now owns 29,298 shares of the company’s stock valued at $250,000 after purchasing an additional 29,249 shares during the period. 12.91% of the stock is owned by institutional investors.

About Ermenegildo Zegna

Ermenegildo Zegna is a global luxury fashion house specializing in men’s tailored clothing, casualwear, accessories, footwear and fragrances. With a focus on high-quality fabrics and craftsmanship, the company manages the entire value chain from wool sourcing and textile production to garment design, manufacturing and retail distribution.

Founded in 1910 by Ermenegildo Zegna in Trivero, Italy, the company began as a textile mill dedicated to producing fine wool fabrics. Over the decades it expanded into ready-to-wear clothing and built a reputation for sartorial excellence.