Skechers U.S.A. (NYSE:SKX) Shares Gap Up on Earnings Beat

Skechers U.S.A., Inc. (NYSE:SKX)’s share price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $61.63, but opened at $64.73. Skechers U.S.A. shares last traded at $62.30, with a volume of 878,135 shares.

The textile maker reported $1.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.15 by $0.11. Skechers U.S.A. had a return on equity of 13.04% and a net margin of 6.90%. The business had revenue of $2.35 billion during the quarter, compared to the consensus estimate of $2.31 billion. During the same quarter last year, the firm posted $0.93 EPS. The company’s quarterly revenue was up 16.0% on a year-over-year basis.

Skechers U.S.A. announced that its Board of Directors has approved a stock repurchase program on Thursday, July 25th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the textile maker to reacquire up to 10.3% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

SKX has been the topic of several research analyst reports. Wedbush increased their price target on shares of Skechers U.S.A. from $76.00 to $79.00 and gave the company an “outperform” rating in a report on Friday, July 26th. Barclays lifted their price target on Skechers U.S.A. from $78.00 to $79.00 and gave the stock an “overweight” rating in a report on Friday, July 26th. Bank of America decreased their price objective on Skechers U.S.A. from $81.00 to $80.00 and set a “buy” rating on the stock in a report on Friday. TD Cowen dropped their target price on Skechers U.S.A. from $78.00 to $76.00 and set a “buy” rating for the company in a report on Monday, October 14th. Finally, Stifel Nicolaus upped their price target on shares of Skechers U.S.A. from $81.00 to $83.00 and gave the company a “buy” rating in a research note on Friday, July 26th. Eleven analysts have rated the stock with a buy rating, According to MarketBeat, Skechers U.S.A. presently has an average rating of “Buy” and an average price target of $77.82.

Institutional Trading of Skechers U.S.A.

Large investors have recently made changes to their positions in the company. Park Avenue Securities LLC increased its stake in shares of Skechers U.S.A. by 4.3% in the 1st quarter. Park Avenue Securities LLC now owns 12,262 shares of the textile maker’s stock valued at $751,000 after purchasing an additional 502 shares during the last quarter. Sunbelt Securities Inc. bought a new position in shares of Skechers U.S.A. in the first quarter worth about $45,000. Hennion & Walsh Asset Management Inc. grew its holdings in shares of Skechers U.S.A. by 41.9% during the 1st quarter. Hennion & Walsh Asset Management Inc. now owns 36,813 shares of the textile maker’s stock valued at $2,255,000 after purchasing an additional 10,863 shares during the last quarter. Symphony Financial Ltd. Co. grew its holdings in shares of Skechers U.S.A. by 34.8% during the 1st quarter. Symphony Financial Ltd. Co. now owns 6,200 shares of the textile maker’s stock valued at $380,000 after purchasing an additional 1,600 shares during the last quarter. Finally, Vaughan Nelson Investment Management L.P. increased its position in Skechers U.S.A. by 62.6% during the 1st quarter. Vaughan Nelson Investment Management L.P. now owns 1,232,993 shares of the textile maker’s stock worth $75,534,000 after purchasing an additional 474,524 shares in the last quarter. Institutional investors and hedge funds own 79.96% of the company’s stock.

Skechers U.S.A. Stock Performance

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 cap of $9.31 billion, a P/E ratio of 16.52, a P/E/G ratio of 0.89 and a beta of 1.22. The company’s 50 day moving average is $66.17 and its 200 day moving average is $66.13.

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.