Deckers Outdoor (DECK) Cut to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Deckers Outdoor (NYSE:DECK) from a buy rating to a hold rating in a research note issued to investors on Wednesday morning.

According to Zacks, “Deckers impressive second-quarter fiscal 2018 results surprised investors, who had braced themselves for a dismal show. The company posted far better results than anticipated and also stated that it is no longer pursuing its plan of sale. We believe that management’s focus on enhancing omni-channel capabilities, innovative line of products and expanding brand assortments bode well for the stock, which has outpaced the industry in the past six months. The company’s long-term target of $2 billion sales with operating margin of 13% by fiscal 2020 also seems achievable. Following the results, management raised its fiscal 2018 view and now envisions net sales to be up 1-2% from last year with bottom line expected to improve 8.6-12.6% year over year. However, third-quarter net sales are expected to decline due to the timing of orders with earnings per share also projected to come down on account of higher operating expenses.”

DECK has been the topic of a number of other reports. FIG Partners reaffirmed a buy rating on shares of Deckers Outdoor in a research report on Monday, October 16th. Robert W. Baird reaffirmed a hold rating and issued a $67.00 target price on shares of Deckers Outdoor in a research report on Friday, October 6th. BidaskClub downgraded shares of Deckers Outdoor from a buy rating to a hold rating in a research report on Tuesday, November 7th. ValuEngine raised shares of Deckers Outdoor from a hold rating to a buy rating in a research report on Sunday, December 31st. Finally, UBS Group downgraded shares of Deckers Outdoor to a neutral rating in a research report on Monday, October 16th. One investment analyst has rated the stock with a sell rating, twelve have given a hold rating and seven have given a buy rating to the company. Deckers Outdoor currently has a consensus rating of Hold and an average price target of $71.69.

Deckers Outdoor (NYSE DECK) opened at $78.96 on Wednesday. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.43 and a quick ratio of 1.26. The company has a market cap of $2,520.00, a price-to-earnings ratio of 78.96, a P/E/G ratio of 1.69 and a beta of 1.26. Deckers Outdoor has a 52-week low of $44.00 and a 52-week high of $80.96.

Deckers Outdoor (NYSE:DECK) last posted its earnings results on Thursday, October 26th. The textile maker reported $1.54 EPS for the quarter, beating the Zacks’ consensus estimate of $1.02 by $0.52. The firm had revenue of $482.50 million for the quarter, compared to the consensus estimate of $440.11 million. Deckers Outdoor had a net margin of 1.80% and a return on equity of 15.23%. The company’s revenue was down .7% on a year-over-year basis. During the same period last year, the firm posted $1.21 EPS. research analysts predict that Deckers Outdoor will post 4.32 earnings per share for the current fiscal year.

Deckers Outdoor announced that its Board of Directors has authorized a stock buyback plan on Thursday, October 26th that permits the company to repurchase $335.00 million in outstanding shares. This repurchase authorization permits the textile maker to buy shares of its stock through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Large investors have recently modified their holdings of the company. Flinton Capital Management LLC boosted its holdings in shares of Deckers Outdoor by 74.2% in the second quarter. Flinton Capital Management LLC now owns 1,728 shares of the textile maker’s stock valued at $118,000 after acquiring an additional 736 shares in the last quarter. Riverhead Capital Management LLC lifted its stake in shares of Deckers Outdoor by 75.5% in the second quarter. Riverhead Capital Management LLC now owns 1,931 shares of the textile maker’s stock valued at $132,000 after purchasing an additional 831 shares during the period. PNC Financial Services Group Inc. lifted its stake in shares of Deckers Outdoor by 91.2% in the second quarter. PNC Financial Services Group Inc. now owns 2,543 shares of the textile maker’s stock valued at $175,000 after purchasing an additional 1,213 shares during the period. Parallax Volatility Advisers L.P. lifted its stake in shares of Deckers Outdoor by 401.9% in the second quarter. Parallax Volatility Advisers L.P. now owns 2,654 shares of the textile maker’s stock valued at $181,000 after purchasing an additional 3,533 shares during the period. Finally, Crossmark Global Holdings Inc. acquired a new stake in shares of Deckers Outdoor in the third quarter valued at about $202,000. 99.56% of the stock is currently owned by institutional investors and hedge funds.

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Deckers Outdoor Company Profile

Deckers Outdoor Corporation is engaged in designing, marketing and distributing footwear, apparel and accessories for both everyday casual lifestyle use and high performance activities. The Company’s segments include operations of its brands, such as UGG, Teva, Sanuk and other brands; wholesale divisions, and Direct-to-Consumer (DTC) business, which includes E-Commerce business and retail store business.

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