Zacks Investment Research upgraded shares of Deckers Outdoor (NYSE:DECK) from a hold rating to a strong-buy rating in a research note released on Tuesday, February 6th. The brokerage currently has $109.00 price objective on the textile maker’s stock.
According to Zacks, “Sturdy sales performance across UGG, HOKA ONE ONE and Teva brands enabled Deckers to deliver sturdy third-quarter fiscal 2018 results, wherein both the top and bottom lines grew year over year and surpassed expectations. Encouraging retail scenario and favorable weather conditions along with latest tax reform and improved margins as well as share repurchases also aided the results. We believe that management’s focus on enhancing omni-channel capabilities, innovative line of products and expanding brand assortments bode well for the stock, which has outpaced the industry in a year. The company’s long-term target of $2 billion sales with operating margin of 13% by fiscal 2020 also seems achievable. Following the results, management raised its fiscal 2018 view. Deckers now envisions net sales to be in the band of $1,873-$1,878 million and adjusted earnings in the range of $5.37-5.42 per share, up from $3.82 reported last year.”
A number of other equities analysts have also recently issued reports on the stock. Canaccord Genuity lifted their target price on shares of Deckers Outdoor from $100.00 to $110.00 and gave the stock a buy rating in a research report on Tuesday, February 6th. Buckingham Research lifted their price target on shares of Deckers Outdoor from $73.00 to $89.00 and gave the stock a neutral rating in a report on Friday, February 2nd. Stifel Nicolaus boosted their target price on shares of Deckers Outdoor from $93.00 to $107.00 and gave the company a buy rating in a report on Friday, February 2nd. Robert W. Baird upgraded shares of Deckers Outdoor from a neutral rating to a positive rating and boosted their target price for the company from $87.00 to $108.00 in a report on Friday, February 2nd. Finally, Telsey Advisory Group boosted their price objective on shares of Deckers Outdoor from $96.00 to $101.00 and gave the stock an outperform rating in a research note on Friday, February 2nd. One analyst has rated the stock with a sell rating, nine have given a hold rating, seven have given a buy rating and one has given a strong buy rating to the company’s stock. The company currently has an average rating of Hold and a consensus target price of $87.43.
Deckers Outdoor (NYSE:DECK) last posted its earnings results on Thursday, February 1st. The textile maker reported $4.97 EPS for the quarter, beating the Zacks’ consensus estimate of $3.84 by $1.13. The firm had revenue of $810.50 million for the quarter, compared to the consensus estimate of $748.38 million. Deckers Outdoor had a net margin of 4.17% and a return on equity of 17.72%. The company’s revenue was up 6.6% on a year-over-year basis. During the same period last year, the firm posted $4.11 EPS. analysts predict that Deckers Outdoor will post 5.43 EPS for the current year.
Deckers Outdoor declared that its Board of Directors has initiated a share buyback plan on Thursday, October 26th that authorizes the company to repurchase $335.00 million in shares. This repurchase authorization authorizes the textile maker to reacquire shares of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.
In other Deckers Outdoor news, COO David E. Lafitte sold 863 shares of the company’s stock in a transaction dated Tuesday, February 6th. The shares were sold at an average price of $92.97, for a total transaction of $80,233.11. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO David Powers sold 2,500 shares of the company’s stock in a transaction dated Wednesday, February 7th. The shares were sold at an average price of $95.51, for a total transaction of $238,775.00. Following the sale, the chief executive officer now directly owns 92,583 shares of the company’s stock, valued at $8,842,602.33. The disclosure for this sale can be found here. Insiders sold a total of 14,168 shares of company stock valued at $1,341,189 in the last quarter. 1.90% of the stock is currently owned by insiders.
A number of large investors have recently added to or reduced their stakes in the stock. Public Employees Retirement System of Ohio grew its holdings in Deckers Outdoor by 6.6% during the second quarter. Public Employees Retirement System of Ohio now owns 4,370 shares of the textile maker’s stock valued at $298,000 after purchasing an additional 270 shares during the last quarter. Thrivent Financial For Lutherans grew its stake in shares of Deckers Outdoor by 7.3% in the second quarter. Thrivent Financial For Lutherans now owns 6,460 shares of the textile maker’s stock worth $441,000 after acquiring an additional 440 shares during the last quarter. Meadow Creek Investment Management LLC grew its stake in shares of Deckers Outdoor by 22.1% in the fourth quarter. Meadow Creek Investment Management LLC now owns 3,278 shares of the textile maker’s stock worth $263,000 after acquiring an additional 594 shares during the last quarter. Flinton Capital Management LLC grew its stake in shares of Deckers Outdoor by 74.2% in the second quarter. Flinton Capital Management LLC now owns 1,728 shares of the textile maker’s stock worth $118,000 after acquiring an additional 736 shares during the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC grew its stake in shares of Deckers Outdoor by 0.8% in the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 101,263 shares of the textile maker’s stock worth $8,126,000 after acquiring an additional 766 shares during the last quarter. Hedge funds and other institutional investors own 99.56% of the company’s stock.
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About Deckers Outdoor
Deckers Outdoor Corporation is engaged in designing, marketing and distributing footwear, apparel and accessories for both everyday casual lifestyle use and high performance activities. The Company’s segments include operations of its brands, such as UGG, Teva, Sanuk and other brands; wholesale divisions, and Direct-to-Consumer (DTC) business, which includes E-Commerce business and retail store business.
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