Conn’s Inc (NASDAQ:CONN) Sees Large Drop in Short Interest

Conn’s Inc (NASDAQ:CONN) saw a significant drop in short interest in July. As of July 31st, there was short interest totalling 5,441,500 shares, a drop of 5.4% from the June 30th total of 5,750,100 shares. Based on an average daily trading volume, of 421,000 shares, the short-interest ratio is currently 12.9 days. Currently, 26.6% of the shares of the stock are sold short.

Several research firms have recently commented on CONN. ValuEngine cut shares of Conn’s from a “sell” rating to a “strong sell” rating in a research note on Monday, June 3rd. Zacks Investment Research raised shares of Conn’s from a “sell” rating to a “hold” rating in a research note on Tuesday, August 6th. Finally, BidaskClub raised shares of Conn’s from a “hold” rating to a “buy” rating in a research note on Friday, August 2nd. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating and four have issued a buy rating to the company. Conn’s currently has an average rating of “Buy” and a consensus price target of $34.00.

In related news, COO Lee A. Wright purchased 5,882 shares of the firm’s stock in a transaction dated Tuesday, June 4th. The shares were acquired at an average cost of $17.03 per share, with a total value of $100,170.46. Following the completion of the purchase, the chief operating officer now directly owns 203,189 shares of the company’s stock, valued at $3,460,308.67. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Chairman Norman Miller purchased 11,765 shares of the firm’s stock in a transaction dated Tuesday, June 4th. The shares were bought at an average cost of $17.03 per share, for a total transaction of $200,357.95. Following the completion of the purchase, the chairman now directly owns 388,761 shares of the company’s stock, valued at $6,620,599.83. The disclosure for this purchase can be found here. In the last ninety days, insiders have bought 27,647 shares of company stock valued at $480,228. Company insiders own 3.68% of the company’s stock.

A number of hedge funds have recently made changes to their positions in CONN. Dimensional Fund Advisors LP boosted its stake in Conn’s by 28.1% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,875,092 shares of the specialty retailer’s stock valued at $35,365,000 after acquiring an additional 411,845 shares during the last quarter. SG Capital Management LLC bought a new position in Conn’s in the second quarter valued at approximately $6,771,000. Morgan Stanley boosted its stake in Conn’s by 21.6% in the second quarter. Morgan Stanley now owns 1,048,751 shares of the specialty retailer’s stock valued at $18,688,000 after acquiring an additional 186,498 shares during the last quarter. Vanguard Group Inc. boosted its stake in Conn’s by 9.6% in the second quarter. Vanguard Group Inc. now owns 2,094,359 shares of the specialty retailer’s stock valued at $37,321,000 after acquiring an additional 183,478 shares during the last quarter. Finally, Marshall Wace North America L.P. boosted its stake in Conn’s by 229.7% in the first quarter. Marshall Wace North America L.P. now owns 186,050 shares of the specialty retailer’s stock valued at $4,252,000 after acquiring an additional 129,617 shares during the last quarter. 76.65% of the stock is currently owned by hedge funds and other institutional investors.

CONN opened at $19.47 on Friday. Conn’s has a one year low of $15.40 and a one year high of $42.65. The company has a debt-to-equity ratio of 1.90, a current ratio of 5.41 and a quick ratio of 4.28. The company’s 50 day simple moving average is $18.99 and its 200-day simple moving average is $21.43. The stock has a market capitalization of $621.48 million, a P/E ratio of 7.76, a price-to-earnings-growth ratio of 0.31 and a beta of 2.21.

Conn’s (NASDAQ:CONN) last announced its quarterly earnings data on Friday, May 31st. The specialty retailer reported $0.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.53 by $0.05. Conn’s had a net margin of 5.22% and a return on equity of 14.38%. The firm had revenue of $353.50 million for the quarter, compared to analysts’ expectations of $366.66 million. During the same period last year, the firm earned $0.39 earnings per share. The business’s revenue for the quarter was down 1.4% on a year-over-year basis. As a group, analysts anticipate that Conn’s will post 2.74 EPS for the current year.

Conn’s Company Profile

Conn's, Inc operates as a specialty retailer of durable consumer goods and related services in the United States. It operates through two segments, Retail and Credit. The company's stores offer furniture and mattress, including furniture and related accessories for the living room, dining room, and bedroom, as well as traditional and specialty mattresses; and home appliances, such as refrigerators, freezers, washers, dryers, dishwashers, and ranges.

Read More: What does a hold rating mean?

Receive News & Ratings for Conn's Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Conn's and related companies with MarketBeat.com's FREE daily email newsletter.