Skechers USA Inc (NYSE:SKX) shares gapped up before the market opened on Monday after Zacks Investment Research upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $41.10, but opened at $41.06. Zacks Investment Research now has a $46.00 price target on the stock. Skechers USA shares last traded at $40.13, with a volume of 2858062 shares.

According to Zacks, “Greater emphasis on new line of products, cost containment efforts, inventory management and global distribution platform has helped lift Skechers’ performance. The company delivered positive earnings surprise in the final quarter of 2017, marking the second straight successive beat. Notably, the spectacular performance in the back-to-back quarters has led the stock to outpace the industry in the past six months. Net sales also beat the estimate for the fifth quarter in row gaining from solid performances at the international wholesale business, company-owned global retail business and domestic wholesale business. Skechers’ domestic e-commerce business, which also contributed to sales growth, continues to gain traction. Management now expects both the top and bottom lines to increase year over year during the first quarter of 2018. However, higher general & administrative expenses remain a concern.”

Other research analysts have also issued research reports about the company. Buckingham Research set a $36.00 price target on Skechers USA and gave the stock a “buy” rating in a report on Friday, October 20th. Susquehanna Bancshares reiterated a “buy” rating on shares of Skechers USA in a report on Friday, October 20th. B. Riley set a $37.00 price target on Skechers USA and gave the stock a “buy” rating in a report on Friday, October 20th. Cowen set a $36.00 price target on Skechers USA and gave the stock a “buy” rating in a report on Friday, October 20th. Finally, Vetr raised Skechers USA from a “hold” rating to a “buy” rating and set a $33.73 price objective for the company in a research report on Tuesday, October 31st. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating and twelve have issued a buy rating to the stock. The stock has an average rating of “Buy” and an average price target of $41.34.

In related news, Director Thomas Walsh sold 750 shares of the firm’s stock in a transaction dated Monday, November 27th. The stock was sold at an average price of $34.81, for a total transaction of $26,107.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Robert Greenberg sold 500,000 shares of the firm’s stock in a transaction dated Wednesday, December 20th. The stock was sold at an average price of $37.66, for a total value of $18,830,000.00. Following the sale, the chief executive officer now directly owns 267,713 shares of the company’s stock, valued at $10,082,071.58. The disclosure for this sale can be found here. Insiders have sold a total of 580,750 shares of company stock valued at $21,665,988 over the last three months. Corporate insiders own 38.20% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Tower Research Capital LLC TRC acquired a new position in Skechers USA in the 4th quarter valued at about $139,000. PNC Financial Services Group Inc. grew its position in Skechers USA by 6.6% in the 2nd quarter. PNC Financial Services Group Inc. now owns 5,428 shares of the textile maker’s stock valued at $161,000 after acquiring an additional 335 shares in the last quarter. CIBC Asset Management Inc acquired a new position in Skechers USA in the 4th quarter valued at about $202,000. Advisor Partners LLC acquired a new position in Skechers USA in the 4th quarter valued at about $203,000. Finally, Dearborn Partners LLC acquired a new position in Skechers USA in the 4th quarter valued at about $214,000. 68.59% of the stock is owned by institutional investors.

The company has a market cap of $6,340.00, a PE ratio of 34.78, a price-to-earnings-growth ratio of 1.29 and a beta of 0.20. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.06 and a current ratio of 3.52.

Skechers USA (NYSE:SKX) last released its earnings results on Thursday, February 8th. The textile maker reported $0.21 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.08. The company had revenue of $970.59 million during the quarter, compared to the consensus estimate of $881.39 million. Skechers USA had a return on equity of 14.63% and a net margin of 4.30%. Skechers USA’s revenue was up 27.0% compared to the same quarter last year. During the same period in the previous year, the company posted $0.04 EPS. analysts anticipate that Skechers USA Inc will post 2.27 EPS for the current fiscal year.

Skechers USA declared that its board has authorized a stock repurchase plan on Thursday, February 8th that permits the company to repurchase $150.00 million in shares. This repurchase authorization permits the textile maker to repurchase shares of its stock through open market purchases. Shares repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

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Skechers USA Company Profile

Skechers U.SA, Inc is a designer and marketer of Skechers-branded lifestyle footwear for men, women and children, and performance footwear for men and women under the Skechers GO brand name. The Company operates through three segments: domestic wholesale sales, international wholesale sales, and retail sales, which includes e-commerce sales.

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