Genesco (GCO) Downgraded to Hold at Zacks Investment Research

Zacks Investment Research cut shares of Genesco (NYSE:GCO) from a buy rating to a hold rating in a research note published on Thursday.

According to Zacks, “Genesco Inc., a Nashville-based specialty retailer, sells footwear, headwear and accessories in retail stores in the United States and Canada. The Company sells its products principally under the names Journeys, Journeys Kidz, Shi by Journeys, Johnston & Murphy, Underground Station, Hatworld, Lids, Hat Shack, Hat Zone, Head Quarters and Cap Connection, and on internet websites. The Company also sells footwear at wholesale under its Johnston & Murphy brand and under the licensed Dockers brand. “

Several other analysts also recently weighed in on the stock. Pivotal Research downgraded shares of Genesco from a buy rating to a hold rating and set a $52.00 price target for the company. in a research note on Wednesday, January 9th. They noted that the move was a valuation call. Piper Jaffray Companies set a $41.00 price target on shares of Genesco and gave the company a hold rating in a research note on Friday, November 30th. TheStreet raised shares of Genesco from a c+ rating to a b rating in a research note on Tuesday, January 8th. Finally, ValuEngine raised shares of Genesco from a hold rating to a buy rating in a research note on Tuesday, November 27th. Eight research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. Genesco presently has a consensus rating of Hold and a consensus target price of $43.00.

NYSE GCO traded up $0.27 during trading on Thursday, hitting $46.10. The stock had a trading volume of 1,140 shares, compared to its average volume of 273,295. The company has a debt-to-equity ratio of 0.09, a current ratio of 2.26 and a quick ratio of 0.48. The company has a market cap of $946.63 million, a P/E ratio of 14.69, a PEG ratio of 2.59 and a beta of 0.72. Genesco has a one year low of $36.60 and a one year high of $51.85.

Genesco (NYSE:GCO) last posted its quarterly earnings results on Thursday, December 6th. The company reported $0.95 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.86 by $0.09. Genesco had a net margin of 2.31% and a return on equity of 7.21%. The firm had revenue of $713.10 million during the quarter, compared to the consensus estimate of $712.06 million. During the same quarter in the previous year, the firm posted $1.02 earnings per share. The company’s revenue was down .5% on a year-over-year basis. As a group, equities research analysts expect that Genesco will post 3.27 EPS for the current year.

Genesco declared that its board has initiated a stock buyback program on Friday, December 14th that permits the company to repurchase $125.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 14.7% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

In other Genesco news, Director Marty G. Dickens sold 5,000 shares of Genesco stock in a transaction on Tuesday, January 29th. The shares were sold at an average price of $49.50, for a total value of $247,500.00. Following the transaction, the director now directly owns 18,578 shares of the company’s stock, valued at $919,611. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Robert J. Dennis sold 11,380 shares of Genesco stock in a transaction on Wednesday, January 23rd. The stock was sold at an average price of $47.14, for a total transaction of $536,453.20. Following the completion of the transaction, the chief executive officer now directly owns 261,361 shares in the company, valued at $12,320,557.54. The disclosure for this sale can be found here. Insiders sold 16,880 shares of company stock worth $807,953 over the last ninety days. Corporate insiders own 4.30% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. lifted its position in Genesco by 3.6% during the fourth quarter. BlackRock Inc. now owns 2,944,051 shares of the company’s stock valued at $130,421,000 after purchasing an additional 103,596 shares during the period. Vanguard Group Inc. lifted its position in Genesco by 2.2% during the third quarter. Vanguard Group Inc. now owns 1,920,730 shares of the company’s stock valued at $90,466,000 after purchasing an additional 41,294 shares during the period. Vanguard Group Inc lifted its position in Genesco by 2.2% during the third quarter. Vanguard Group Inc now owns 1,920,730 shares of the company’s stock valued at $90,466,000 after purchasing an additional 41,294 shares during the period. FMR LLC lifted its position in Genesco by 9.3% during the third quarter. FMR LLC now owns 1,122,800 shares of the company’s stock valued at $52,884,000 after purchasing an additional 95,644 shares during the period. Finally, Canada Pension Plan Investment Board lifted its position in Genesco by 99.7% during the fourth quarter. Canada Pension Plan Investment Board now owns 595,200 shares of the company’s stock valued at $26,365,000 after purchasing an additional 297,144 shares during the period.

Genesco Company Profile

Genesco Inc retails and wholesales footwear, apparel, and accessories. The company operates in five segments: Journeys Group, Schuh Group, Lids Sports Group, Johnston & Murphy Group, and Licensed Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, Shi by Journeys, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children.

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