Skechers U.S.A., Inc. (NYSE:SKX) saw their stocks soar to a new height on Friday, thanks to the escalation of Deutsche Bank Aktiengesellschaft’s projected price target from $56.00 to $57.00 per share on the said stock. The design, development, and marketing company has seen impressive growth in some recent times by offering lifestyle footwear not only for men, but also for women and children across all age brackets.
Operating through its Wholesale and Direct-to-Consumer segments, Skechers U.S.A offers department stores, family shoe stores, specialty running, and sporting goods retailers some of the most innovative foot-wears suitable for customers’ specific needs. Undoubtedly, several institutional investors have also recently adapted their positions about the company’s vitality as demonstrated in its growth trajectories in recent months.
Financial experts at Allworth Financial LP increased their share holding by 162.5% in Skechers U.S.A during Q3 2020. They now hold over 790 shares of the textile maker’s stock worth $25k after acquiring an extra 489 pieces in Q4 2020 alone. In like manner Quent Capital LLC increased their holding by a whopping 122.4% this year alone owning 585 shares put at $28k from an added acquisition of 322 shares since last quarter.
In addition to these stand-out holding figures; Lazard Asset Management LLC purchased a new stake in Skechers USa worth approximately $47k while Proficio Capital Partners LLC purchased a new stake valued at around $53k during Q1 this year. An impressive eighty-eight percent improvement was meanwhile noticed regarding Covestor Ltd’s previous holdings as they lifted their stakes in Skechers U.S.A by another 640 shares since that period while currently owning almost one thousand four hundred shares valued at around $55K.
It should be noted that hedge funds and other institutional investment holders account for about 93.29% of Skechers’ current stock, indicating that the company has gained some level of likeness among investors. Ultimately, the result of Skechers U.S.A.’s growth extends beyond the numbers as their reach beyond gender and age is a testament to their commitment to tailor innovative and functional solutions suited to the interest of all.
Skechers U.S.A. Generates Buzz in Stock Market Following Upgrades and Insider Selling
Skechers U.S.A. (NYSE:SKX) has been generating buzz in the stock market due to its recent reports and ratings from different analysts. It is noteworthy that the textile maker was recently upgraded by Argus from a “hold” rating to a “buy” rating and given a $50.00 target price for the company in a report on Friday, January 6th. In addition, Raymond James also boosted their target price to $58.00, while Morgan Stanley raised their target price from $46.00 to $48.00 both last Friday.
Skechers U.S.A.’s moderate buy rating is based on data analyzed by Bloomberg’s financial services which collates analyst recommendations and consensus price targets for publicly traded companies.
However, it must be noted that in March alone, insiders sold 78,305 shares of company stock worth $3,548,625 with company insiders owning 24.44% of Skechers’ stock at present.
Skechers U.SA., Inc is primarily involved in designing, developing and marketing lifestyle footwear worldwide through two business segments- Wholesale and Direct-to-Consumer sales channels.
The Wholesale segment includes department stores as well as family shoe stores together with speciality running and sporting goods retailers.
In terms of financial ratios, Skechers has a current ratio of 2.26 implying that it has current assets that can cover the payment of short-term obligations while its quick ratio stands at a healthy level of 1.13 indicating that it can meet short-term obligations using highly liquid assets without depleting cash or resulting in other liquidity issues which could harm operations.
Despite significant insider selling activity going on within the company over the past month and concerns around sustainability of revenue growth rates in light of approaching saturation points in key markets such as China; Skecher’s revenue jumped up by 13.5% YoY with revenues amounting to $1.88 billion in the past quarter ending February 2nd, leading to a net margin of 5.01%.
The stock is currently trading at an advantageous PE ratio of 22.36 and has a beta value of 1.32.
All things considered, Skechers U.S.A. is seen as a highly attractive stock at present despite some potential risks surrounding its growth strategies and insider selling activities it still appears to be heading in the right direction as long as management sticks to their roadmap for continued growth and success within the shoemaking industry.
