Are Smart Investors Making the Right Decision? Skechers U S A, Inc. (SKX)

Skechers U S A, Inc. (NYSE: SKX) stock jumped 3.69% on Monday to $54.48 against a previous-day closing price of $52.54. With 2.05 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.93 million shares. During the session, the Footwear & Accessories company that operates in wider Consumer Cyclical sector, reached to the highest price of $54.63 whereas the lowest price it dropped to was $52.49. The 52-week range on SKX shows that it touched its highest point at $56.53 and its lowest point at $38.62 during that stretch. It currently has a 1-year price target of $64.00. Beta for the stock currently stands at 1.36.

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 10.22%, but this was up by 12.49% over a month. Three-month performance surged to 8.63% while six-month performance rose 6.36%. The stock gained 36.58% in the past year, while it has gained 29.87% so far this year. A look at the trailing 12-month EPS for SKX yields 3.41 with Next year EPS estimates of 4.10. For the next quarter, that number is 0.53. This implies an EPS growth rate of 45.64% for this year and 18.24% for next year. EPS is expected to grow by 27.28% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 15.88%.

Float and Shares Shorts:

At present, 134.47 million SKX shares are outstanding with a float of 132.89 million shares on hand for trading. On Oct 30, 2023, short shares totaled 4.2 million, which was 2.73% higher than short shares on Sep 28, 2023. In addition to STX as the firm’s Seagate Technology Holdings PLC, SKX serves as its Skechers U.S.A., Inc..

Institutional Ownership:

Through their ownership of 94.49% of SKX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 48.18% of SKX, in contrast to 47.65% held by mutual funds. Shares owned by individuals account for 2.24%. As the largest shareholder in SKX with 14.76% of the stake, Fidelity Management & Research Co holds 19,835,978 shares worth 19,835,978. A second-largest stockholder of SKX, The Vanguard Group, Inc., holds 12,395,408 shares, controlling over 9.23% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in SKX, holding 11,387,898 shares or 8.48% stake. With a 5.02% stake in SKX, the Fidelity Growth Company Fund is the largest stakeholder. A total of 6,741,622 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.13% of SKX stock, is the second-largest Mutual Fund holder. It holds 4,208,450 shares valued at 202.93 million. iShares Core S&P Mid Cap ETF holds 3.09% of the stake in SKX, owning 4,149,547 shares worth 200.09 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SKX since 0 analysts follow the stock currently. 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 $88.00 and a low target of $49.00, the average target price over the next 12 months is $64.00. Based on these targets, SKX could surge 61.53% to reach the target high and fall by -10.06% to reach the target low. Reaching the average price target will result in a growth of 17.47% from current levels.

Summary of Insider Activity:

Insiders traded SKX stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 13 while that of sell transactions has risen to 28 over the past year. The total number of shares bought during that period was 295,197 while 296,784 shares were sold.