Signet Jewelers Limited (NYSE: SIG) stock jumped 7.75% on Monday to $77.56 against a previous-day closing price of $71.98. With 0.84 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.82 million shares. During the session, the Luxury Goods company that operates in wider Consumer Cyclical sector, reached to the highest price of $77.94 whereas the lowest price it dropped to was $72.15. The 52-week range on SIG shows that it touched its highest point at $88.43 and its lowest point at $48.31 during that stretch. It currently has a 1-year price target of $83.33. With its current market cap of 3.54 billion, SIG has annualized dividend of $0.80 while the current yield stands at 1.03%. Beta for the stock currently stands at 2.18.
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 SIG was up-trending over the past week, with a rise of 7.66%, but this was up by 17.05% over a month. Three-month performance surged to 40.61% while six-month performance rose 30.51%. The stock lost -1.81% in the past year, while it has gained 14.06% so far this year. A look at the trailing 12-month EPS for SIG yields 5.92 with Next year EPS estimates of 10.68. For the next quarter, that number is 5.36. This implies an EPS growth rate of -5.10% for this year and -8.35% for next year. EPS is expected to grow by 7.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 11.00%.
Float and Shares Shorts:
At present, 46.10 million SIG shares are outstanding with a float of 45.14 million shares on hand for trading. On Oct 13, 2022, short shares totaled 4.85 million, which was 10.48% higher than short shares on Sep 14, 2022. In addition to Ms. Virginia C. Drosos as the firm’s CEO & Director, Ms. Joan M. Hilson serves as its Chief Financial & Strategy Officer.
Through their ownership of 107.75% of SIG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 7.68% of SIG, in contrast to 59.59% held by mutual funds. Shares owned by individuals account for 47.13%. As the largest shareholder in SIG with 21.54% of the stake, Select Equity Group LP holds 9,785,818 shares worth 9,785,818. A second-largest stockholder of SIG, BlackRock Fund Advisors, holds 7,057,378 shares, controlling over 15.53% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in SIG, holding 5,377,055 shares or 11.83% stake. With a 7.52% stake in SIG, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 3,415,429 shares are owned by the mutual fund manager. The Contrarius ICAV – Global Equity F, which owns about 3.87% of SIG stock, is the second-largest Mutual Fund holder. It holds 1,757,618 shares valued at 119.52 million. Vanguard Total Stock Market Index holds 2.95% of the stake in SIG, owning 1,340,499 shares worth 91.15 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SIG since 7 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 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 SIG analysts setting a high price target of $92.00 and a low target of $75.00, the average target price over the next 12 months is $83.33. Based on these targets, SIG could surge 18.62% to reach the target high and fall by -3.3% to reach the target low. Reaching the average price target will result in a growth of 7.44% 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. SIG will report FY 2023 earnings on 03/16/2023. Analysts have provided yearly estimates in a range of $12.01 being high and $11.47 being low. For SIG, this leads to a yearly average estimate of $11.71. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Signet Jewelers Limited surprised analysts by $0.42 when it reported $0.74 EPS against a consensus estimate of $0.32. The surprise factor in the prior quarter was $0.09. Based on analyst estimates, the high estimate for the next quarter is $5.76 and the low estimate is $5.02. The average estimate for the next quarter is thus $5.38.
Summary of Insider Activity:
Insiders traded SIG stock several times over the past three months with 1 Buys and 0 Sells. In these transactions, 389 shares were bought while 0 shares were sold. The number of buy transactions has increased to 48 while that of sell transactions has risen to 55 over the past year. The total number of shares bought during that period was 1,555,787 while 447,863 shares were sold.