Skechers U.S.A. (NYSE:SKX) Shares Gap Down After Earnings Miss

Skechers U.S.A., Inc. (NYSE:SKX)’s stock price gapped down prior to trading 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 changing hands.

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

Wall Street Analysts Forecast Growth

A number of research firms have commented on SKX. TD Cowen raised their target price on Skechers U.S.A. from $88.00 to $93.00 and gave the company a “buy” rating in a report on Wednesday, January 8th. Evercore ISI increased their target price on shares of Skechers U.S.A. from $72.00 to $85.00 and gave the company an “outperform” rating in a report on Tuesday, January 28th. Needham & Company LLC reissued a “hold” rating on shares of Skechers U.S.A. in a research note on Friday. Barclays upped their price target on Skechers U.S.A. from $79.00 to $80.00 and gave the stock an “overweight” rating in a report on Friday, October 25th. Finally, Morgan Stanley lifted their price objective on Skechers U.S.A. from $81.00 to $84.00 and gave the stock an “overweight” rating in a report on Friday, October 25th. Two investment analysts have rated the stock with a hold rating and ten have issued a buy rating to the company’s stock. According to MarketBeat.com, Skechers U.S.A. has a consensus rating of “Moderate Buy” and a consensus target price of $81.60.

Insider Activity at Skechers U.S.A.

In other Skechers U.S.A. news, President Michael Greenberg sold 10,274 shares of the business’s stock in a transaction on Tuesday, December 31st. The stock was sold at an average price of $67.48, for a total value of $693,289.52. Following the completion of the transaction, the president now directly owns 149,327 shares in the company, valued at approximately $10,076,585.96. The trade was a 6.44 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, COO David Weinberg sold 8,219 shares of the stock in a transaction on Tuesday, December 31st. The stock was 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 position. The disclosure for this sale can be found here. Corporate insiders own 24.75% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of SKX. Creative Planning increased its position in Skechers U.S.A. by 15.7% during the second quarter. Creative Planning now owns 9,504 shares of the textile maker’s stock worth $657,000 after purchasing an additional 1,292 shares during the last quarter. Truist Financial Corp grew its stake in shares of Skechers U.S.A. by 40.8% during the 2nd quarter. Truist Financial Corp now owns 24,172 shares of the textile maker’s stock valued at $1,671,000 after buying an additional 7,004 shares during the period. Cetera Investment Advisers increased its holdings in shares of Skechers U.S.A. by 32.9% during the 2nd quarter. Cetera Investment Advisers now owns 25,016 shares of the textile maker’s stock worth $1,729,000 after buying an additional 6,193 shares during the last quarter. Sanctuary Advisors LLC purchased a new position in shares of Skechers U.S.A. in the 2nd quarter worth $1,027,000. Finally, Handelsbanken Fonder AB boosted its holdings in Skechers U.S.A. by 18.4% in the third quarter. Handelsbanken Fonder AB now owns 36,690 shares of the textile maker’s stock valued at $2,455,000 after acquiring an additional 5,700 shares during the last quarter. Institutional investors and hedge funds own 79.96% of the company’s stock.

Skechers U.S.A. Stock Performance

The stock has a market cap of $10.29 billion, a PE ratio of 16.88, 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 stock has a 50-day simple moving average of $70.51 and a 200-day simple moving average of $66.46.

About Skechers U.S.A.

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.