Designer Brands Inc. (NYSE: DBI) stock fell -0.98% on Friday to $15.15 against a previous-day closing price of $15.30. With 1.1 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.31 million shares. During the session, the Apparel Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $15.35 whereas the lowest price it dropped to was $15.05. The 52-week range on DBI shows that it touched its highest point at $17.42 and its lowest point at $11.24 during that stretch. It currently has a 1-year price target of $18.50. With its current market cap of 1.05 billion, DBI has annualized dividend of $0.20 while the current yield stands at 1.32%. Beta for the stock currently stands at 2.12.
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 DBI was up-trending over the past week, with a rise of 6.32%, but this was up by 20.81% over a month. Three-month performance surged to 2.99% while six-month performance rose 19.67%. The stock gained 14.08% in the past year, while it has gained 6.62% so far this year. A look at the trailing 12-month EPS for DBI yields 2.12 with Next year EPS estimates of 2.04. For the next quarter, that number is 0.53. This implies an EPS growth rate of 129.50% for this year and 7.02% for next year. EPS is expected to grow by 14.68% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 5.70%.
Float and Shares Shorts:
At present, 72.92 million DBI shares are outstanding with a float of 53.79 million shares on hand for trading. On Jul 14, 2022, short shares totaled 6.84 million, which was 9.73% higher than short shares on Jun 14, 2022. In addition to Mr. Jay L. Schottenstein as the firm’s Exec. Chairman, Mr. Roger L. Rawlins serves as its CEO & Director.
Through their ownership of 102.04% of DBI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 50.08% of DBI, in contrast to 49.22% held by mutual funds. Shares owned by individuals account for 10.29%. As the largest shareholder in DBI with 14.80% of the stake, BlackRock Fund Advisors holds 9,267,006 shares worth 9,267,006. A second-largest stockholder of DBI, The Vanguard Group, Inc., holds 6,534,339 shares, controlling over 10.44% of the firm’s shares. William Blair Investment Manageme is the third largest shareholder in DBI, holding 3,390,800 shares or 5.42% stake. With a 6.88% stake in DBI, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 4,307,640 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.73% of DBI stock, is the second-largest Mutual Fund holder. It holds 1,708,467 shares valued at 22.31 million. Vanguard Small Cap Index Fund holds 2.34% of the stake in DBI, owning 1,467,426 shares worth 19.16 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Apr 29, 2022, DBI reported revenue of $830.54M and operating income of $52.32M. Over the past year, revenue came in at $3.32B while operating income stood at $241.41M. It generated $26.18M net income for the quarter, which came to $163.64M over the last twelve months. The EBITDA in the recently reported quarter was $75.65M and diluted EPS was $0.34. EBITDA for the full year was $322.06M.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DBI since 6 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 1 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 DBI analysts setting a high price target of $22.00 and a low target of $14.00, the average target price over the next 12 months is $18.50. Based on these targets, DBI could surge 45.21% to reach the target high and fall by -7.59% to reach the target low. Reaching the average price target will result in a growth of 22.11% 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. DBI will report FY 2023 earnings on 03/14/2023. Analysts have provided yearly estimates in a range of $2.00 being high and $1.65 being low. For DBI, this leads to a yearly average estimate of $1.91. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Designer Brands Inc. surprised analysts by $0.24 when it reported $0.48 EPS against a consensus estimate of $0.24. The surprise factor in the prior quarter was -$0.01. Based on analyst estimates, the high estimate for the next quarter is $0.57 and the low estimate is $0.50. The average estimate for the next quarter is thus $0.53.
Summary of Insider Activity:
Insiders traded DBI stock several times over the past three months with 5 Buys and 1 Sells. In these transactions, 53,840 shares were bought while 10,500 shares were sold. The number of buy transactions has increased to 20 while that of sell transactions has risen to 16 over the past year. The total number of shares bought during that period was 542,133 while 374,291 shares were sold.