Genesco (NYSE:GCO) Cut to Hold at Zacks Investment Research

Zacks Investment Research cut shares of Genesco (NYSE:GCO) from a strong-buy rating to a hold rating in a report issued on Wednesday, Zacks.com reports.

According to Zacks, “Genesco Inc., a Nashville-based specialty retailer, sells footwear, headwear and accessories in retail stores in the United States and Canada. The Company sells its products principally under the names Journeys, Journeys Kidz, Shi by Journeys, Johnston & Murphy, Underground Station, Hatworld, Lids, Hat Shack, Hat Zone, Head Quarters and Cap Connection, and on internet websites. The Company also sells footwear at wholesale under its Johnston & Murphy brand and under the licensed Dockers brand. “

Other equities research analysts have also issued reports about the company. ValuEngine lowered Genesco from a hold rating to a sell rating in a research note on Friday, July 19th. Pivotal Research reissued a hold rating and set a $45.00 price objective on shares of Genesco in a research note on Monday, June 3rd. Finally, TheStreet lowered Genesco from a b rating to a c+ rating in a research note on Wednesday, June 5th. One analyst has rated the stock with a sell rating and four have assigned a hold rating to the stock. The stock currently has a consensus rating of Hold and an average price target of $42.50.

NYSE GCO traded down $0.16 on Wednesday, reaching $36.50. 338,655 shares of the stock traded hands, compared to its average volume of 243,580. The stock’s fifty day moving average price is $41.95. The company has a debt-to-equity ratio of 1.13, a quick ratio of 0.64 and a current ratio of 1.65. The company has a market capitalization of $606.15 million, a P/E ratio of 11.13, a price-to-earnings-growth ratio of 2.00 and a beta of 0.52. Genesco has a 12 month low of $35.71 and a 12 month high of $51.85.

Genesco (NYSE:GCO) last issued its quarterly earnings results on Friday, May 31st. The company reported $0.33 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.04 by $0.29. The firm had revenue of $495.70 million during the quarter, compared to analyst estimates of $479.36 million. Genesco had a positive return on equity of 8.85% and a negative net margin of 1.70%. The firm’s quarterly revenue was up 2.0% on a year-over-year basis. During the same period last year, the company posted ($0.06) EPS. Research analysts predict that Genesco will post 3.66 earnings per share for the current fiscal year.

Genesco announced that its board has authorized a stock repurchase program on Friday, May 3rd that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the company to repurchase up to 11.7% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

In other news, Director Thurgood Marshall, Jr. sold 1,690 shares of the firm’s stock in a transaction on Friday, June 14th. The stock was sold at an average price of $44.57, for a total transaction of $75,323.30. Following the completion of the sale, the director now directly owns 9,724 shares of the company’s stock, valued at approximately $433,398.68. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, VP Mario Gallione sold 2,049 shares of the firm’s stock in a transaction on Friday, July 19th. The stock was sold at an average price of $40.31, for a total value of $82,595.19. Following the sale, the vice president now directly owns 36,309 shares of the company’s stock, valued at $1,463,615.79. The disclosure for this sale can be found here. Company insiders own 4.40% of the company’s stock.

Several institutional investors have recently modified their holdings of GCO. Swiss National Bank raised its position in Genesco by 2.2% in the 2nd quarter. Swiss National Bank now owns 37,600 shares of the company’s stock worth $1,590,000 after purchasing an additional 800 shares during the last quarter. DekaBank Deutsche Girozentrale bought a new stake in shares of Genesco during the 2nd quarter valued at $112,000. Municipal Employees Retirement System of Michigan raised its position in shares of Genesco by 41.7% during the 2nd quarter. Municipal Employees Retirement System of Michigan now owns 8,330 shares of the company’s stock valued at $352,000 after acquiring an additional 2,450 shares during the last quarter. Aperio Group LLC raised its position in shares of Genesco by 2.6% during the 2nd quarter. Aperio Group LLC now owns 52,162 shares of the company’s stock valued at $2,206,000 after acquiring an additional 1,321 shares during the last quarter. Finally, Robeco Institutional Asset Management B.V. raised its position in shares of Genesco by 122.8% during the 2nd quarter. Robeco Institutional Asset Management B.V. now owns 171,967 shares of the company’s stock valued at $7,272,000 after acquiring an additional 94,794 shares during the last quarter. 94.82% of the stock is owned by institutional investors and hedge funds.

Genesco Company Profile

Genesco Inc operates as a retailer and wholesaler of footwear, apparel, and accessories. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Licensed Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children.

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