Zacks Investment Research upgraded shares of Kirkland's (NASDAQ:KIRK) from a sell rating to a hold rating in a research report sent to investors on Monday.
According to Zacks, “Kirkland's, which has been reporting a loss for quite some time now, has lagged the industry in the past year. The company has been grappling with high operating costs and soft traffic, which was also witnessed in third-quarter fiscal 2017. Kirkland’s third-quarter loss widened year over year and was worse than the consensus mark. Results were hurt by supply chain disruptions, impact from hurricanes, higher store labor and outbound freight costs. These factors, along with expectations of a higher tax rate also led to a tweaked earnings view. Nonetheless, the company continued with its solid sales trend, courtesy of contributions from new stores, focus on merchandise enhancements and a 40% surge in e-commerce sales. Solid conversions also helped Kirkland’s offset weak traffic, leading to comps growth. Notably, the company began the fourth quarter on a solid note, with its holiday season assortments and marketing efforts in place.”
Other equities research analysts also recently issued reports about the stock. B. Riley set a $15.00 price objective on shares of Kirkland's and gave the stock a buy rating in a research note on Thursday, November 16th. KeyCorp reiterated a buy rating and set a $14.00 price objective on shares of Kirkland's in a research note on Friday, November 10th. One analyst has rated the stock with a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the company. Kirkland's currently has an average rating of Buy and an average target price of $12.50.
Kirkland's (NASDAQ:KIRK) last released its earnings results on Tuesday, November 21st. The specialty retailer reported ($0.10) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.01). Kirkland's had a net margin of 1.14% and a return on equity of 5.93%. The company had revenue of $144.98 million during the quarter, compared to analysts’ expectations of $142.31 million. During the same quarter in the previous year, the firm posted ($0.05) earnings per share. Kirkland's’s revenue for the quarter was up 4.9% compared to the same quarter last year. sell-side analysts anticipate that Kirkland's will post 0.49 EPS for the current fiscal year.
In other Kirkland's news, Director Gregory A. Sandfort acquired 7,639 shares of the firm’s stock in a transaction on Tuesday, December 5th. The stock was bought at an average cost of $13.12 per share, for a total transaction of $100,223.68. Following the completion of the purchase, the director now directly owns 2,000 shares in the company, valued at $26,240. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 7.80% of the stock is owned by insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of the company. California Public Employees Retirement System lifted its position in shares of Kirkland's by 9.6% during the third quarter. California Public Employees Retirement System now owns 144,563 shares of the specialty retailer’s stock worth $1,652,000 after purchasing an additional 12,663 shares in the last quarter. Cornerstone Capital Management Holdings LLC. raised its holdings in Kirkland's by 32.1% in the third quarter. Cornerstone Capital Management Holdings LLC. now owns 147,012 shares of the specialty retailer’s stock valued at $1,680,000 after acquiring an additional 35,700 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in Kirkland's by 9.6% in the third quarter. Dimensional Fund Advisors LP now owns 1,317,969 shares of the specialty retailer’s stock valued at $15,064,000 after acquiring an additional 115,385 shares in the last quarter. Hartford Investment Management Co. acquired a new stake in Kirkland's in the third quarter valued at $209,000. Finally, Wells Fargo & Company MN raised its holdings in Kirkland's by 68.0% in the third quarter. Wells Fargo & Company MN now owns 17,081 shares of the specialty retailer’s stock valued at $195,000 after acquiring an additional 6,911 shares in the last quarter. 93.91% of the stock is currently owned by institutional investors and hedge funds.
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Kirkland's Company Profile
Kirkland’s, Inc is a specialty retailer of home decor and gifts in the United States. The Company’s merchandise categories include wall decor, art, mirrors, lamps, decorative accessories, accent furniture, textiles, fragrance and accessories, frames, housewares, impulse and personal accessories, outdoor living and artificial floral products.
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