Abercrombie & Fitch Company (ANF) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research downgraded shares of Abercrombie & Fitch Company (NYSE:ANF) from a buy rating to a hold rating in a report released on Wednesday morning.

According to Zacks, “Abercrombie outperformed the industry in the last three months backed by strategic capital investments, cost saving efforts, loyalty and marketing programs gaining traction. The company is also gaining from a robust surprise trend. Notably, the company delivered earnings and sales beat in third-quarter fiscal 2017, marking the second straight positive earnings surprise and the third consecutive sales beat. Further, it remains encouraged by comps performance as it marked the fourth consecutive quarter of sequential improvement. Results gained from significant progress on its strategic initiatives and strength in Hollister as well as direct-to-customer business. Moreover, the company provided an encouraging view for fourth-quarter fiscal 2017. The company expects foreign currency to be a tailwind, reflecting slight gains in sales and operating income. However, the Abercrombie brand as well as strained margins continued to weigh on results.”

Other equities analysts have also recently issued reports about the stock. B. Riley reissued a neutral rating on shares of Abercrombie & Fitch in a research note on Wednesday, November 1st. William Blair reaffirmed an outperform rating on shares of Abercrombie & Fitch in a research note on Tuesday, September 5th. Citigroup Inc. raised shares of Abercrombie & Fitch from a neutral rating to a buy rating and lifted their price target for the stock from $14.00 to $16.00 in a research note on Friday, August 25th. BMO Capital Markets set a $14.00 price target on shares of Abercrombie & Fitch and gave the stock a hold rating in a research note on Tuesday, August 8th. Finally, Wolfe Research lifted their price target on shares of Abercrombie & Fitch from $9.00 to $13.00 and gave the stock an underperform rating in a research note on Monday, November 20th. Seven analysts have rated the stock with a sell rating, sixteen have given a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the stock. Abercrombie & Fitch currently has an average rating of Hold and an average target price of $12.98.

Abercrombie & Fitch (ANF) opened at $16.73 on Wednesday. Abercrombie & Fitch has a 52 week low of $8.81 and a 52 week high of $17.19. The company has a market cap of $1,131.61, a price-to-earnings ratio of 127.85, a price-to-earnings-growth ratio of 11.04 and a beta of 0.76. The company has a quick ratio of 1.07, a current ratio of 2.08 and a debt-to-equity ratio of 0.27.

Abercrombie & Fitch (NYSE:ANF) last issued its quarterly earnings data on Friday, November 17th. The apparel retailer reported $0.30 EPS for the quarter, topping analysts’ consensus estimates of $0.24 by $0.06. Abercrombie & Fitch had a negative net margin of 0.55% and a positive return on equity of 0.80%. The business had revenue of $859.10 million during the quarter, compared to analysts’ expectations of $818.41 million. During the same period last year, the company posted $0.02 EPS. The business’s revenue was up 4.6% on a year-over-year basis. sell-side analysts anticipate that Abercrombie & Fitch will post 0.11 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 11th. Shareholders of record on Friday, December 1st will be given a $0.20 dividend. The ex-dividend date of this dividend is Thursday, November 30th. This represents a $0.80 annualized dividend and a yield of 4.78%. Abercrombie & Fitch’s dividend payout ratio (DPR) is -285.70%.

Institutional investors have recently added to or reduced their stakes in the business. Cornerstone Capital Management Holdings LLC. purchased a new stake in Abercrombie & Fitch in the 2nd quarter valued at about $114,000. Lorber David A purchased a new stake in Abercrombie & Fitch in the 3rd quarter valued at about $126,000. Old Mutual Global Investors UK Ltd. purchased a new stake in Abercrombie & Fitch in the 3rd quarter valued at about $133,000. Suntrust Banks Inc. boosted its position in Abercrombie & Fitch by 3.9% in the 2nd quarter. Suntrust Banks Inc. now owns 13,257 shares of the apparel retailer’s stock valued at $164,000 after buying an additional 492 shares during the period. Finally, State of Alaska Department of Revenue boosted its position in Abercrombie & Fitch by 79.7% in the 2nd quarter. State of Alaska Department of Revenue now owns 13,427 shares of the apparel retailer’s stock valued at $167,000 after buying an additional 5,957 shares during the period. 98.66% of the stock is owned by institutional investors.

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Abercrombie & Fitch Company Profile

Abercrombie & Fitch Co is a specialty retailer who primarily sells its products through store and direct-to-consumer operations, as well as through various wholesale, franchise and licensing arrangements. The Company operates through two segments: Abercrombie, which includes the Company’s Abercrombie & Fitch and abercrombie kids brands, and Hollister, which includes the Company’s Hollister and Gilly Hicks brands.

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