Skechers U.S.A. Inc. (NYSE: SKX) stock jumped 2.64% on Friday to $38.56 against a previous-day closing price of $37.57. With 1.05 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.38 million shares. During the session, the Footwear & Accessories company that operates in wider Consumer Cyclical sector, reached to the highest price of $38.87 whereas the lowest price it dropped to was $37.79. The 52-week range on SKX shows that it touched its highest point at $55.38 and its lowest point at $33.50 during that stretch. It currently has a 1-year price target of $49.85. Beta for the stock currently stands at 1.31.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SKX was up-trending over the past week, with a rise of 5.90%, but this was up by 5.73% over a month. Three-month performance dropped to -1.36% while six-month performance fell -9.19%. The stock lost -28.75% in the past year, while it has lost -11.15% so far this year. A look at the trailing 12-month EPS for SKX yields 4.55 with Next year EPS estimates of 3.46. For the next quarter, that number is 0.75. This implies an EPS growth rate of 784.70% for this year and 26.69% for next year. EPS is expected to grow by 72.32% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 24.60%.
Float and Shares Shorts:
At present, 156.00 million SKX shares are outstanding with a float of 133.44 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.27 million, which was 2.74% higher than short shares on Jun 14, 2022. In addition to Mr. Robert Y. Greenberg as the firm’s Co-Founder, Chairman & CEO, Mr. Michael Greenberg serves as its Co-Founder, Pres & Director.
Through their ownership of 97.67% of SKX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.50% of SKX, in contrast to 42.10% held by mutual funds. Shares owned by individuals account for 2.35%. As the largest shareholder in SKX with 14.90% of the stake, Fidelity Management & Research Co holds 20,094,256 shares worth 20,094,256. A second-largest stockholder of SKX, The Vanguard Group, Inc., holds 12,061,571 shares, controlling over 8.94% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in SKX, holding 10,046,529 shares or 7.45% stake. With a 5.69% stake in SKX, the Fidelity Growth Company Fund is the largest stakeholder. A total of 7,668,892 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.96% of SKX stock, is the second-largest Mutual Fund holder. It holds 3,989,036 shares valued at 141.93 million. iShares Core S&P Mid Cap ETF holds 2.89% of the stake in SKX, owning 3,891,206 shares worth 138.45 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SKX since 14 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SKX analysts setting a high price target of $60.00 and a low target of $37.00, the average target price over the next 12 months is $49.85. Based on these targets, SKX could surge 55.6% to reach the target high and fall by -4.05% to reach the target low. Reaching the average price target will result in a growth of 29.28% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SKX will report FY 2022 earnings on 02/09/2023. Analysts have provided yearly estimates in a range of $3.02 being high and $2.59 being low. For SKX, this leads to a yearly average estimate of $2.69. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Skechers U.S.A. Inc. surprised analysts by $0.03 when it reported $0.58 EPS against a consensus estimate of $0.55. The surprise factor in the prior quarter was $0.07. Based on analyst estimates, the high estimate for the next quarter is $0.92 and the low estimate is $0.72. The average estimate for the next quarter is thus $0.76.
Summary of Insider Activity:
Insiders traded SKX stock several times over the past three months with 5 Buys and 2 Sells. In these transactions, 17,500 shares were bought while 2,000 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 18 over the past year. The total number of shares bought during that period was 370,500 while 442,245 shares were sold.