Skechers U.S.A. (NYSE:SKX) Shares Down 9%

Skechers U.S.A., Inc. (NYSE:SKX)’s share price fell 9% on Thursday . The stock traded as low as $61.42 and last traded at $61.96. 2,737,416 shares changed hands during mid-day trading, an increase of 57% from the average session volume of 1,745,833 shares. The stock had previously closed at $68.11.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. TD Cowen boosted their target price on Skechers U.S.A. from $77.00 to $79.00 and gave the company a “buy” rating in a research note on Monday, July 22nd. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $82.00 target price on shares of Skechers U.S.A. in a report on Thursday, June 13th. Barclays lifted their price target on shares of Skechers U.S.A. from $78.00 to $79.00 and gave the company an “overweight” rating in a research note on Friday, July 26th. Morgan Stanley upgraded Skechers U.S.A. from an “equal weight” rating to an “overweight” rating and raised their price objective for the company from $60.00 to $80.00 in a report on Tuesday, July 23rd. Finally, Wells Fargo & Company assumed coverage on Skechers U.S.A. in a research report on Wednesday, June 12th. They issued an “overweight” rating and a $83.00 target price on the stock. Twelve investment analysts have rated the stock with a buy rating, According to MarketBeat.com, Skechers U.S.A. presently has a consensus rating of “Buy” and a consensus price target of $78.36.

Skechers U.S.A. Price Performance

The business has a fifty day moving average of $65.30 and a two-hundred day moving average of $65.33. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.33 and a current ratio of 2.06. The firm has a market capitalization of $9.60 billion, a price-to-earnings ratio of 16.58, a price-to-earnings-growth ratio of 0.94 and a beta of 1.23.

Skechers U.S.A. (NYSE:SKX) last issued its quarterly earnings data on Thursday, July 25th. The textile maker reported $0.91 earnings per share for the quarter, missing the consensus estimate of $0.95 by ($0.04). The company had revenue of $2.16 billion during the quarter, compared to the consensus estimate of $2.24 billion. Skechers U.S.A. had a net margin of 6.90% and a return on equity of 13.04%. Skechers U.S.A.’s revenue for the quarter was up 7.3% compared to the same quarter last year. During the same period in the previous year, the company earned $0.98 earnings per share. As a group, research analysts predict that Skechers U.S.A., Inc. will post 4.17 EPS for the current fiscal year.

Skechers U.S.A. declared that its board has approved a stock buyback plan on Thursday, July 25th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the textile maker to repurchase up to 10.3% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Healthcare of Ontario Pension Plan Trust Fund raised its holdings in shares of Skechers U.S.A. by 1,655.4% during the 2nd quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 59,000 shares of the textile maker’s stock worth $4,078,000 after buying an additional 55,639 shares in the last quarter. Cim LLC raised its stake in Skechers U.S.A. by 1.8% during the second quarter. Cim LLC now owns 19,199 shares of the textile maker’s stock worth $1,293,000 after acquiring an additional 337 shares in the last quarter. Sanctuary Advisors LLC acquired a new position in Skechers U.S.A. during the second quarter worth about $1,027,000. New Century Financial Group LLC bought a new position in shares of Skechers U.S.A. in the second quarter worth about $1,081,000. Finally, Teachers Retirement System of The State of Kentucky boosted its stake in shares of Skechers U.S.A. by 646.3% in the 2nd quarter. Teachers Retirement System of The State of Kentucky now owns 323,321 shares of the textile maker’s stock valued at $22,348,000 after purchasing an additional 280,000 shares in the last quarter. 79.96% of the stock is owned by institutional investors.

Skechers U.S.A. Company Profile

Skechers U.SA, Inc designs, develops, markets, and distributes footwear for men, women, and children worldwide. The company operates through Wholesale and Direct-to-Consumer segments. It offers footwear under Skechers Hands Free Slip-ins, Skechers Arch Fit, and Skechers Air-Cooled Memory Foam brands.