Skechers U.S.A. (NYSE:SKX) Shares Gap Down Following Weak Earnings

Skechers U.S.A., Inc. (NYSE:SKX)’s share price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $75.62, but opened at $69.00. Skechers U.S.A. shares last traded at $69.14, with a volume of 2,840,144 shares.

The textile maker reported $0.65 earnings per share for the quarter, missing the consensus estimate of $0.73 by ($0.08). Skechers U.S.A. had a return on equity of 13.71% and a net margin of 7.19%.

Analysts Set New Price Targets

SKX has been the topic of several recent research reports. Morgan Stanley increased their target price on Skechers U.S.A. from $81.00 to $84.00 and gave the stock an “overweight” rating in a research report on Friday, October 25th. Piper Sandler began coverage on Skechers U.S.A. in a research report on Tuesday, December 10th. They set a “neutral” rating and a $65.00 target price on the stock. Barclays lifted their target price on Skechers U.S.A. from $79.00 to $80.00 and gave the company an “overweight” rating in a report on Friday, October 25th. Raymond James reduced their target price on Skechers U.S.A. from $80.00 to $75.00 and set an “outperform” rating for the company in a report on Friday. Finally, Stifel Nicolaus reduced their target price on Skechers U.S.A. from $83.00 to $80.00 and set a “buy” rating for the company in a report on Friday. Two analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Skechers U.S.A. currently has an average rating of “Moderate Buy” and an average price target of $81.50.

Insider Buying and Selling

In related news, President Michael Greenberg sold 10,274 shares of the firm’s stock in a transaction dated Tuesday, December 31st. The stock was sold at an average price of $67.48, for a total transaction of $693,289.52. Following the transaction, the president now directly owns 149,327 shares of the company’s stock, valued at approximately $10,076,585.96. This trade represents a 6.44 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, COO David Weinberg sold 8,219 shares of the firm’s stock in a transaction dated Tuesday, December 31st. The shares were sold at an average price of $67.48, for a total value of $554,618.12. Following the transaction, the chief operating officer now directly owns 122,211 shares in the company, valued at approximately $8,246,798.28. This represents a 6.30 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 24.75% of the stock is owned by company insiders.

Institutional Investors Weigh In On Skechers U.S.A.

A number of institutional investors have recently made changes to their positions in the business. Independent Advisor Alliance lifted its stake in shares of Skechers U.S.A. by 4.7% in the 4th quarter. Independent Advisor Alliance now owns 4,486 shares of the textile maker’s stock valued at $302,000 after acquiring an additional 200 shares during the last quarter. Paragon Private Wealth Management LLC purchased a new position in Skechers U.S.A. in the 4th quarter worth approximately $209,000. Johnson Investment Counsel Inc. lifted its position in Skechers U.S.A. by 6.2% in the fourth quarter. Johnson Investment Counsel Inc. now owns 35,518 shares of the textile maker’s stock valued at $2,388,000 after purchasing an additional 2,079 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its stake in shares of Skechers U.S.A. by 2.9% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 23,680 shares of the textile maker’s stock valued at $1,592,000 after purchasing an additional 671 shares during the period. Finally, HM Payson & Co. bought a new position in shares of Skechers U.S.A. in the fourth quarter worth approximately $417,000. Hedge funds and other institutional investors own 79.96% of the company’s stock.

Skechers U.S.A. Trading Down 12.6 %

The company has a market capitalization of $9.97 billion, a PE ratio of 16.27, a P/E/G ratio of 0.92 and a beta of 1.19. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.96 and a quick ratio of 1.25. The firm’s 50 day moving average is $70.51 and its 200 day moving average is $66.46.

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.