Zacks Investment Research lowered shares of Fossil Group, Inc. (NASDAQ:FOSL) from a hold rating to a sell rating in a research report released on Friday.
According to Zacks, “Fossil has underperformed the industry year to date owing to persistent softness in traditional watch category and lackluster performance of leather and jewelry business across all regions. Further, the company’s gross margin has been strained for a year now owing to intense promotions amid a tough retail landscape and weak margins from connected products. These factors weighed upon the company’s third-quarter 2017 results, wherein both top and bottom lines declined year over year. Also, management expects these headwinds to linger in 2017, which is clear from its dismal outlook. Nonetheless, the company is undertaking significant efforts to expand its wearables category, given the rising demand for tech-savvy watches. Also, it remains focused on its New World Fossil plan, which aims to bring a transformation, fuel efficiencies, improve margins and enhance the overall operating structure of the business to drive profitability.”
A number of other research firms have also recently weighed in on FOSL. Bank of America Corporation set a $7.00 price objective on Fossil Group and gave the stock a sell rating in a research report on Wednesday, August 9th. Telsey Advisory Group cut their target price on Fossil Group from $13.00 to $11.00 and set a market perform rating for the company in a research note on Wednesday, August 9th. Buckingham Research cut their target price on Fossil Group from $10.00 to $9.00 and set a neutral rating for the company in a research note on Wednesday, August 9th. ValuEngine downgraded Fossil Group from a buy rating to a hold rating in a research note on Tuesday, August 1st. Finally, Wells Fargo & Company reissued an underperform rating and set a $8.00 target price on shares of Fossil Group in a research note on Thursday, August 3rd. Five investment analysts have rated the stock with a sell rating, eleven have issued a hold rating and three have given a buy rating to the company. Fossil Group has an average rating of Hold and a consensus price target of $15.43.
Fossil Group (NASDAQ:FOSL) last posted its quarterly earnings data on Tuesday, November 7th. The accessories brand company reported $0.04 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.28) by $0.32. Fossil Group had a positive return on equity of 4.75% and a negative net margin of 12.33%. The company had revenue of $689.00 million during the quarter, compared to analysts’ expectations of $649.87 million. During the same period last year, the firm earned $0.36 EPS. The firm’s revenue for the quarter was down 6.6% on a year-over-year basis. equities analysts predict that Fossil Group will post -0.17 EPS for the current year.
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In other Fossil Group news, EVP Gregory A. Mckelvey bought 110,000 shares of the company’s stock in a transaction dated Friday, November 10th. The shares were acquired at an average cost of $6.22 per share, with a total value of $684,200.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP John A. White bought 13,000 shares of the company’s stock in a transaction dated Wednesday, August 23rd. The shares were acquired at an average cost of $7.26 per share, for a total transaction of $94,380.00. The disclosure for this purchase can be found here. Insiders acquired 192,147 shares of company stock worth $1,329,006 over the last three months. 12.80% of the stock is currently owned by corporate insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in the company. Commerzbank Aktiengesellschaft FI increased its position in shares of Fossil Group by 177.5% during the third quarter. Commerzbank Aktiengesellschaft FI now owns 548,529 shares of the accessories brand company’s stock worth $5,118,000 after acquiring an additional 350,865 shares during the last quarter. KBC Group NV increased its position in shares of Fossil Group by 167.9% during the third quarter. KBC Group NV now owns 13,441 shares of the accessories brand company’s stock worth $125,000 after acquiring an additional 8,424 shares during the last quarter. Hotchkis & Wiley Capital Management LLC purchased a new stake in shares of Fossil Group during the third quarter worth about $182,000. Schwab Charles Investment Management Inc. increased its position in shares of Fossil Group by 31.5% during the third quarter. Schwab Charles Investment Management Inc. now owns 388,165 shares of the accessories brand company’s stock worth $3,622,000 after acquiring an additional 93,027 shares during the last quarter. Finally, Investec Asset Management LTD purchased a new stake in shares of Fossil Group during the third quarter worth about $1,474,000.
Fossil Group Company Profile
Fossil Group, Inc is a design, marketing and distribution company that specializes in consumer fashion accessories. The Company’s segments include Americas, Europe and Asia. Each segment includes sales to wholesale and distributor customers, and sales through the Company-owned retail stores and e-commerce activities based on the location of the selling entity.
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