Skechers U.S.A. (NYSE:SKX) Sees Large Volume Increase – Still a Buy?

Shares of Skechers U.S.A., Inc. (NYSE:SKX) saw an uptick in trading volume on Monday . 5,156,775 shares changed hands during mid-day trading, an increase of 76% from the previous session’s volume of 2,927,955 shares.The stock last traded at $62.10 and had previously closed at $61.49.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on SKX. UBS Group reaffirmed a “neutral” rating and issued a $63.00 target price (down from $64.00) on shares of Skechers U.S.A. in a research note on Tuesday, May 6th. Morgan Stanley reissued an “equal weight” rating and set a $63.00 price target (down from $73.00) on shares of Skechers U.S.A. in a research note on Wednesday, May 7th. Monness Crespi & Hardt downgraded shares of Skechers U.S.A. from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 7th. Bank of America dropped their price target on shares of Skechers U.S.A. from $76.00 to $70.00 and set a “buy” rating for the company in a research note on Monday, March 24th. Finally, Stifel Nicolaus dropped their price target on shares of Skechers U.S.A. from $80.00 to $62.00 and set a “buy” rating for the company in a research note on Thursday, April 10th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and seven have given a buy rating to the company. According to data from MarketBeat, Skechers U.S.A. presently has a consensus rating of “Hold” and an average price target of $70.00.

Skechers U.S.A. Price Performance

The company has a market cap of $9.32 billion, a price-to-earnings ratio of 15.03, a PEG ratio of 1.11 and a beta of 1.06. The company has a quick ratio of 1.12, a current ratio of 1.97 and a debt-to-equity ratio of 0.01. The company’s fifty day moving average price is $53.40 and its two-hundred day moving average price is $62.07.

Skechers U.S.A. (NYSE:SKX) last released its quarterly earnings results on Thursday, April 24th. The textile maker reported $1.34 earnings per share for the quarter, beating the consensus estimate of $1.17 by $0.17. The company had revenue of $2.41 billion during the quarter, compared to analysts’ expectations of $2.43 billion. Skechers U.S.A. had a net margin of 7.13% and a return on equity of 13.73%. The business’s quarterly revenue was up 7.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.33 earnings per share. On average, equities research analysts forecast that Skechers U.S.A., Inc. will post 4.47 EPS for the current fiscal year.

Insider Buying and Selling

In other Skechers U.S.A. news, CFO John M. Vandemore sold 5,112 shares of the company’s stock in a transaction on Monday, March 3rd. The shares were sold at an average price of $60.76, for a total transaction of $310,605.12. Following the sale, the chief financial officer now directly owns 83,328 shares of the company’s stock, valued at approximately $5,063,009.28. This represents a 5.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, General Counsel Phillip Paccione sold 10,994 shares of the company’s stock in a transaction on Monday, March 3rd. The stock was sold at an average price of $56.63, for a total transaction of $622,590.22. Following the sale, the general counsel now directly owns 15,000 shares in the company, valued at $849,450. This trade represents a 42.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 218,245 shares of company stock worth $13,452,902. 24.78% of the stock is owned by insiders.

Institutional Trading of Skechers U.S.A.

Several institutional investors and hedge funds have recently added to or reduced their stakes in SKX. NewEdge Advisors LLC raised its position in Skechers U.S.A. by 85.2% during the fourth quarter. NewEdge Advisors LLC now owns 413 shares of the textile maker’s stock worth $28,000 after acquiring an additional 190 shares in the last quarter. TD Private Client Wealth LLC raised its position in Skechers U.S.A. by 534.3% during the fourth quarter. TD Private Client Wealth LLC now owns 425 shares of the textile maker’s stock worth $29,000 after acquiring an additional 358 shares in the last quarter. Investment Management Corp VA ADV bought a new stake in Skechers U.S.A. during the fourth quarter worth $32,000. Parallel Advisors LLC raised its position in Skechers U.S.A. by 183.0% during the first quarter. Parallel Advisors LLC now owns 617 shares of the textile maker’s stock worth $35,000 after acquiring an additional 399 shares in the last quarter. Finally, Golden State Wealth Management LLC bought a new stake in Skechers U.S.A. during the first quarter worth $35,000. 79.96% of the stock is owned by institutional investors.

About Skechers U.S.A.

Skechers U.SA, Inc designs, develops, markets, and distributes footwear for men, women, and children worldwide. The company operates through Wholesale and Direct-to-Consumer segments. It offers footwear under Skechers Hands Free Slip-ins, Skechers Arch Fit, and Skechers Air-Cooled Memory Foam brands.