Argus Downgrades Skechers USA Inc. (SKX) to Hold

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Skechers USA Inc. (NYSE:SKX) was downgraded by research analysts at Argus from a “buy” rating to a “hold” rating in a report released on Monday.
The analysts wrote, “We are concerned about the sharp slowdown in Skechers’ domestic revenue in 2016. In addition, we expect the company to be hurt by above-average inventories of athletic footwear and by increased price competition from Under Armour, Nike, and other specialty retailers,” analyst John Staszak wrote in a note.In addition, the footwear company is “facing continued, though diminishing, currency headwinds on the more than 40 percent of its sales that come from overseas.”
A number of other brokerages also recently issued reports on SKX. Zacks Investment Research upgraded Skechers USA from a “sell” rating to a “hold” rating in a research report on Monday, July 18th. B. Riley restated a “buy” rating and set a $42.00 price objective on shares of Skechers USA in a research report on Tuesday, July 19th. Morgan Stanley restated a “buy” rating on shares of Skechers USA in a research report on Monday, June 6th. Dundee Securities raised their price objective on Skechers USA from C$1.60 to C$1.75 in a research report on Monday, April 4th. Finally, Vetr upgraded Skechers USA from a “hold” rating to a “buy” rating and set a $34.68 price objective for the company in a research report on Tuesday, July 19th. Seven analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company’s stock. Skechers USA has a consensus rating of “Buy” and a consensus target price of $31.39.

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Shares of Skechers USA (NYSE:SKX) traded down 2.61% during midday trading on Monday, hitting $23.48. The stock had a trading volume of 1,904,737 shares. Skechers USA has a 52 week low of $22.50 and a 52 week high of $49.58. The company’s 50 day moving average is $24.35 and its 200 day moving average is $29.22. The firm has a market cap of $3.71 billion, a P/E ratio of 13.56 and a beta of 0.32.
Skechers USA (NYSE:SKX) last issued its quarterly earnings data on Thursday, July 21st. The company reported $0.50 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.52 by $0.02. Skechers USA had a return on equity of 20.20% and a net margin of 7.79%. The company had revenue of $877.80 million for the quarter, compared to the consensus estimate of $892.06 million. During the same quarter last year, the business earned $0.52 earnings per share. On average, equities analysts predict that Skechers USA will post $1.83 earnings per share for the current fiscal year.
In related news, General Counsel Phillip Paccione sold 1,389 shares of Skechers USA stock in a transaction that occurred on Thursday, July 28th. The stock was sold at an average price of $24.12, for a total transaction of $33,502.68. Following the transaction, the general counsel now owns 90,445 shares of the company’s stock, valued at $2,181,533.40. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Jeffrey Greenberg sold 10,000 shares of Skechers USA stock in a transaction that occurred on Friday, July 1st. The shares were sold at an average price of $30.15, for a total value of $301,500.00. The disclosure for this sale can be found here. Corporate insiders own 21.73% of the company’s stock.
Other hedge funds and institutional investors recently made changes to their positions in the company. Hartline Investment Corp acquired a new position in Skechers USA during the fourth quarter valued at $3,075,000. Robeco Institutional Asset Management B.V. boosted its position in Skechers USA by 132.9% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 38,925 shares of the company’s stock valued at $1,175,000 after buying an additional 22,210 shares in the last quarter. State of New Jersey Common Pension Fund D boosted its position in Skechers USA by 235.2% in the fourth quarter. State of New Jersey Common Pension Fund D now owns 333,500 shares of the company’s stock valued at $10,075,000 after buying an additional 234,000 shares in the last quarter. Vanguard Group Inc. boosted its position in Skechers USA by 211.4% in the fourth quarter. Vanguard Group Inc. now owns 10,454,998 shares of the company’s stock valued at $315,845,000 after buying an additional 7,098,035 shares in the last quarter. Finally, Whitebox Advisors LLC acquired a new position in Skechers USA during the fourth quarter valued at $1,196,000. 67.47% of the stock is currently owned by institutional investors.
Skechers USA Company Profile
Skechers U.SA, Inc is a designer and marketer of Skechers-branded lifestyle footwear for men, women and children, and performance footwear for men and women under the Skechers GO brand name. The Company operates through three segments: domestic wholesale sales, international wholesale sales, and retail sales, which includes e-commerce sales.

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