Zumiez (ZUMZ) Upgraded to Buy by Zacks Investment Research

Zumiez (NASDAQ:ZUMZ) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Saturday, Zacks.com reports. The firm presently has a $25.00 target price on the apparel and footwear maker’s stock. Zacks Investment Research‘s target price would indicate a potential upside of 12.46% from the company’s current price.

According to Zacks, “Zumiez’ shares outperformed the industry in the past six months, riding on a favorable comps trend and a sturdy bottom-line picture. Notably, during fourth-quarter fiscal 2018, comps grew 3.9%, backed by higher transaction volume, and growth in men’s, women’s, hard goods and footwear categories. Management expects the positive comps trend to continue in fiscal 2019. In the fourth quarter, adjusted earnings improved year on year and beat the Zacks Consensus Estimate. This was largely driven by lower tax expenses. Furthermore, Zumiez is on track with store remodeling and openings. The company is also striving to boost consumer’s shopping experience across sales channels. On the flip side, we note that management issued an unfavorable view for first-quarter fiscal 2019, wherein it expects a loss of 13-7 cents per share. This is likely to stem from a decline in operating margin.”

Several other analysts also recently issued reports on the stock. Pivotal Research downgraded shares of Zumiez from a “buy” rating to a “hold” rating and decreased their price objective for the stock from $28.00 to $26.00 in a report on Monday, March 11th. Wedbush downgraded shares of Zumiez from a “neutral” rating to an “underperform” rating and set a $22.00 price objective for the company. in a report on Thursday, May 9th. They noted that the move was a valuation call. BidaskClub raised shares of Zumiez from a “hold” rating to a “buy” rating in a report on Friday, April 26th. Finally, ValuEngine cut shares of Zumiez from a “hold” rating to a “sell” rating in a research note on Thursday, March 21st. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and three have given a buy rating to the company. Zumiez currently has an average rating of “Hold” and a consensus price target of $25.14.

NASDAQ ZUMZ opened at $22.23 on Friday. The firm has a market cap of $571.76 million, a P/E ratio of 12.42, a PEG ratio of 0.89 and a beta of 1.24. Zumiez has a 1 year low of $17.57 and a 1 year high of $32.70.

Zumiez (NASDAQ:ZUMZ) last posted its quarterly earnings data on Thursday, March 14th. The apparel and footwear maker reported $1.18 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.11 by $0.07. The business had revenue of $304.56 million during the quarter, compared to the consensus estimate of $305.55 million. Zumiez had a net margin of 4.62% and a return on equity of 12.24%. Zumiez’s quarterly revenue was down 1.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.82 EPS. On average, analysts anticipate that Zumiez will post 1.85 earnings per share for the current year.

In related news, insider Troy R. Brown sold 20,324 shares of the company’s stock in a transaction on Friday, April 26th. The shares were sold at an average price of $27.41, for a total transaction of $557,080.84. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Scott Andrew Bailey sold 5,986 shares of the company’s stock in a transaction on Friday, April 12th. The shares were sold at an average price of $25.94, for a total transaction of $155,276.84. Following the transaction, the director now owns 3,189 shares of the company’s stock, valued at $82,722.66. The disclosure for this sale can be found here. 23.10% of the stock is owned by corporate insiders.

Large investors have recently added to or reduced their stakes in the stock. Lombard Odier Asset Management USA Corp bought a new stake in Zumiez during the 1st quarter worth about $208,000. Maverick Capital Ltd. bought a new stake in Zumiez during the 1st quarter worth about $6,559,000. Hotchkis & Wiley Capital Management LLC bought a new stake in Zumiez during the 1st quarter worth about $1,496,000. Macquarie Group Ltd. grew its holdings in Zumiez by 503.0% during the 1st quarter. Macquarie Group Ltd. now owns 2,412 shares of the apparel and footwear maker’s stock worth $60,000 after acquiring an additional 2,012 shares during the last quarter. Finally, Oxford Asset Management LLP bought a new stake in Zumiez during the 1st quarter worth about $1,945,000. Hedge funds and other institutional investors own 81.67% of the company’s stock.

About Zumiez

Zumiez Inc, together with its subsidiaries, operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women. Its hardgoods include skateboards, snowboards, bindings, components, and other equipment. As of September 1, 2018, the company operated 703 stores, including 610 stores in the United States, 50 stores in Canada, 36 stores in Europe, and 7 stores in Australia under the names of Zumiez, Blue Tomato, and Fast Times.

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