Deckers Outdoor (NYSE:DECK) Shares Gap Down Following Analyst Downgrade

Deckers Outdoor Co. (NYSE:DECK)’s share price gapped down before the market opened on Friday after Telsey Advisory Group downgraded the stock from an outperform rating to a market perform rating. The stock had previously closed at $126.09, but opened at $97.94. Deckers Outdoor shares last traded at $100.01, with a volume of 7,040,434 shares traded.

Several other equities research analysts have also recently weighed in on the company. Evercore ISI reissued an “in-line” rating and issued a $110.00 price objective (down from $235.00) on shares of Deckers Outdoor in a research report on Friday. Guggenheim reiterated a “neutral” rating on shares of Deckers Outdoor in a research note on Friday, January 31st. Piper Sandler dropped their price objective on Deckers Outdoor from $210.00 to $100.00 and set a “neutral” rating for the company in a research note on Friday, April 11th. Truist Financial dropped their price objective on Deckers Outdoor from $235.00 to $225.00 and set a “buy” rating for the company in a research note on Friday, January 31st. Finally, Raymond James dropped their price objective on Deckers Outdoor from $150.00 to $140.00 and set a “strong-buy” rating for the company in a research note on Friday. Twelve equities research analysts have rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, Deckers Outdoor currently has an average rating of “Moderate Buy” and a consensus price target of $134.68.

Insider Activity

In other news, Director Maha Saleh Ibrahim sold 300 shares of the firm’s stock in a transaction dated Thursday, March 6th. The shares were sold at an average price of $134.48, for a total value of $40,344.00. Following the transaction, the director now owns 10,388 shares of the company’s stock, valued at approximately $1,396,978.24. This trade represents a 2.81% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director David Powers sold 25,000 shares of the stock in a transaction that occurred on Friday, February 28th. The shares were sold at an average price of $138.84, for a total transaction of $3,471,000.00. Following the completion of the sale, the director now owns 241,777 shares in the company, valued at $33,568,318.68. This represents a 9.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.40% of the company’s stock.

Institutional Trading of Deckers Outdoor

Hedge funds have recently modified their holdings of the company. Allspring Global Investments Holdings LLC raised its position in shares of Deckers Outdoor by 109.6% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 449,683 shares of the textile maker’s stock valued at $91,965,000 after acquiring an additional 235,091 shares during the period. Navellier & Associates Inc. raised its position in shares of Deckers Outdoor by 6.4% in the 4th quarter. Navellier & Associates Inc. now owns 29,806 shares of the textile maker’s stock valued at $6,053,000 after acquiring an additional 1,791 shares during the period. Wilmington Savings Fund Society FSB raised its position in shares of Deckers Outdoor by 62.6% in the 4th quarter. Wilmington Savings Fund Society FSB now owns 6,928 shares of the textile maker’s stock valued at $1,407,000 after acquiring an additional 2,668 shares during the period. Charles Schwab Investment Management Inc. raised its position in shares of Deckers Outdoor by 3.3% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,001,033 shares of the textile maker’s stock valued at $203,300,000 after acquiring an additional 32,318 shares during the period. Finally, Amundi raised its position in shares of Deckers Outdoor by 11.0% in the 4th quarter. Amundi now owns 1,088,351 shares of the textile maker’s stock valued at $225,855,000 after acquiring an additional 108,054 shares during the period. 97.79% of the stock is currently owned by institutional investors and hedge funds.

Deckers Outdoor Stock Performance

The stock has a market capitalization of $15.31 billion, a price-to-earnings ratio of 16.36, a P/E/G ratio of 1.68 and a beta of 1.11. The firm’s fifty day simple moving average is $114.55 and its 200 day simple moving average is $158.10.

Deckers Outdoor (NYSE:DECK) last announced its earnings results on Thursday, May 22nd. The textile maker reported $1.00 EPS for the quarter, topping the consensus estimate of $0.57 by $0.43. The firm had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $1.01 billion. Deckers Outdoor had a net margin of 19.14% and a return on equity of 41.71%. The business’s quarterly revenue was up 6.5% on a year-over-year basis. During the same period last year, the company posted $0.82 EPS. Analysts forecast that Deckers Outdoor Co. will post 5.89 earnings per share for the current year.

Deckers Outdoor announced that its Board of Directors has approved a stock repurchase program on Thursday, May 22nd that authorizes the company to buyback $2.25 billion in outstanding shares. This buyback authorization authorizes the textile maker to repurchase up to 11.7% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its stock is undervalued.

Deckers Outdoor Company Profile

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. The company offers premium footwear, apparel, and accessories under the UGG brand name; footwear, apparel, and accessories for ultra-runners and athletes under the HOKA brand name; and sandals, shoes, and boots under the Teva brand name.