Michaels Companies (NASDAQ:MIK) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Wednesday, Zacks.com reports. The brokerage presently has a $11.00 price objective on the specialty retailer’s stock. Zacks Investment Research‘s target price would indicate a potential upside of 15.91% from the company’s previous close.
According to Zacks, “Although Michaels have underperformed the industry in the past three months, it is likely to gain momentum on the back of its strategic efforts. The company’s focus on integrating e-commerce and in-store operations to boost omni-channel experience is likely to aid growth. Also, the company is benefiting from its enhanced ability to search, expanded assortments and in-store product availability, leading to higher traffic and conversion rates. Backed by efficient expense management and share repurchase program, earnings grew year over year in fourth-quarter fiscal 2018. Moreover, the company has a robust surprise trend, reporting earnings beat in four consecutive quarters. However, soft margins trend continued in the fourth quarter, due to higher costs. While gross margin declined in the last four quarters, operating margin contracted for five straight quarters. Further, management issued soft earnings view for first-quarter and fiscal 2019.”
Several other research firms also recently weighed in on MIK. BidaskClub downgraded Michaels Companies from a “hold” rating to a “sell” rating in a report on Monday. Morgan Stanley downgraded shares of Michaels Companies from an “overweight” rating to an “equal weight” rating and reduced their target price for the stock from $17.00 to $10.00 in a report on Monday. Telsey Advisory Group reiterated an “outperform” rating and issued a $17.00 target price (down from $20.00) on shares of Michaels Companies in a report on Wednesday, March 20th. Credit Suisse Group reiterated a “positive” rating and issued a $20.00 target price (down from $26.00) on shares of Michaels Companies in a report on Thursday, January 31st. Finally, JPMorgan Chase & Co. downgraded shares of Michaels Companies from an “overweight” rating to a “neutral” rating and reduced their target price for the stock from $18.00 to $15.00 in a report on Friday, March 1st. Three research analysts have rated the stock with a sell rating, seven have given a hold rating and three have assigned a buy rating to the company’s stock. Michaels Companies currently has an average rating of “Hold” and a consensus target price of $15.00.
Michaels Companies (NASDAQ:MIK) last posted its quarterly earnings data on Tuesday, March 19th. The specialty retailer reported $1.44 EPS for the quarter, topping the consensus estimate of $1.42 by $0.02. The company had revenue of $1.79 billion during the quarter, compared to analyst estimates of $1.78 billion. Michaels Companies had a net margin of 6.06% and a negative return on equity of 24.50%. Michaels Companies’s quarterly revenue was down 5.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.19 earnings per share. As a group, equities analysts anticipate that Michaels Companies will post 2.47 EPS for the current fiscal year.
Institutional investors and hedge funds have recently bought and sold shares of the company. Squarepoint Ops LLC purchased a new stake in Michaels Companies in the fourth quarter valued at approximately $2,740,000. California Public Employees Retirement System boosted its position in Michaels Companies by 9.1% in the 4th quarter. California Public Employees Retirement System now owns 203,656 shares of the specialty retailer’s stock worth $2,758,000 after purchasing an additional 16,940 shares in the last quarter. NumerixS Investment Technologies Inc boosted its position in Michaels Companies by 161.3% in the 4th quarter. NumerixS Investment Technologies Inc now owns 24,300 shares of the specialty retailer’s stock worth $326,000 after purchasing an additional 15,000 shares in the last quarter. South Dakota Investment Council boosted its position in Michaels Companies by 300.3% in the 4th quarter. South Dakota Investment Council now owns 240,600 shares of the specialty retailer’s stock worth $3,258,000 after purchasing an additional 180,500 shares in the last quarter. Finally, GSA Capital Partners LLP boosted its position in Michaels Companies by 442.2% in the 4th quarter. GSA Capital Partners LLP now owns 65,876 shares of the specialty retailer’s stock worth $892,000 after purchasing an additional 53,727 shares in the last quarter.
About Michaels Companies
The Michaels Companies, Inc owns and operates arts and crafts specialty retail stores for Makers and do-it-yourself home decorators in North America. It operates Michaels stores that offer approximately 45,000 stock-keeping units (SKUs) in crafts, home decor and seasonal, framing, and paper crafting; and Aaron Brothers stores, which offer approximately 5,600 SKUs, including photo frames, a line of ready-made frames, art prints, framed art, art supplies, and custom framing services.
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