Skechers U S A, Inc. (SKX) Stock: Assessing the Risk and Reward

The stock of Skechers U S A, Inc. (SKX) has gone down by -1.87% for the week, with a -5.55% drop in the past month and a -5.57% drop in the past quarter. The volatility ratio for the week is 1.88%, and the volatility levels for the past 30 days are 2.22% for SKX. The simple moving average for the last 20 days is -3.23% for SKX stock, with a simple moving average of 6.89% for the last 200 days.

Is It Worth Investing in Skechers U S A, Inc. (NYSE: SKX) Right Now?

Skechers U S A, Inc. (NYSE: SKX) has a price-to-earnings ratio of 16.87x that is above its average ratio. Additionally, the 36-month beta value for SKX is 1.34. There are mixed opinions on the stock, with 5 analysts rating it as a “buy,” 5 rating it as “overweight,” 2 rating it as “hold,” and 0 rating it as “sell.”

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The public float for SKX is 132.02M and currently, short sellers hold a 1.91% ratio of that float. The average trading volume of SKX on April 03, 2024 was 1.60M shares.

SKX) stock’s latest price update

Skechers U S A, Inc. (NYSE: SKX) has seen a decline in its stock price by -4.00 in relation to its previous close of 61.32. However, the company has experienced a -1.87% decline in its stock price over the last five trading sessions. CNBC Television reported 2024-04-01 that Adrienne Yih, Barclays U.S. retail senior analyst, joins ‘Power Lunch’ to discuss Barclays expanding its coverage into footwear stocks and identifying which retailers are winning in the space.

Analysts’ Opinion of SKX

Many brokerage firms have already submitted their reports for SKX stocks, with Barclays repeating the rating for SKX by listing it as a “Overweight.” The predicted price for SKX in the upcoming period, according to Barclays is $71 based on the research report published on April 01, 2024 of the current year 2024.

BofA Securities, on the other hand, stated in their research note that they expect to see SKX reach a price target of $67. The rating they have provided for SKX stocks is “Neutral” according to the report published on March 08th, 2024.

Evercore ISI gave a rating of “Outperform” to SKX, setting the target price at $73 in the report published on February 15th of the current year.

SKX Trading at -3.03% from the 50-Day Moving Average

After a stumble in the market that brought SKX to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -9.66% of loss for the given period.

Volatility was left at 2.22%, however, over the last 30 days, the volatility rate increased by 1.88%, as shares sank -2.60% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -9.18% lower at present.

During the last 5 trading sessions, SKX fell by -1.87%, which changed the moving average for the period of 200-days by +10.91% in comparison to the 20-day moving average, which settled at $60.75. In addition, Skechers U S A, Inc. saw -5.57% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at SKX starting from GREENBERG ROBERT, who sale 30,339 shares at the price of $61.11 back on Mar 15 ’24. After this action, GREENBERG ROBERT now owns 132,783 shares of Skechers U S A, Inc., valued at $1,854,016 using the latest closing price.

GREENBERG MICHAEL, the President of Skechers U S A, Inc., sale 25,282 shares at $61.11 during a trade that took place back on Mar 15 ’24, which means that GREENBERG MICHAEL is holding 123,441 shares at $1,544,983 based on the most recent closing price.

Stock Fundamentals for SKX

Current profitability levels for the company are sitting at:

  • 0.1 for the present operating margin
  • 0.52 for the gross margin

The net margin for Skechers U S A, Inc. stands at 0.07. The total capital return value is set at 0.13. Equity return is now at value 14.38, with 7.56 for asset returns.

Based on Skechers U S A, Inc. (SKX), the company’s capital structure generated 0.18 points at debt to capital in total, while cash flow to debt ratio is standing at 1.41. The debt to equity ratio resting at 0.22. The interest coverage ratio of the stock is 21.09.

Currently, EBITDA for the company is 966.71 million with net debt to EBITDA at 1.1. When we switch over and look at the enterprise to sales, we see a ratio of 1.23. The receivables turnover for the company is 8.49for trailing twelve months and the total asset turnover is 1.06. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.38.

Conclusion

In conclusion, Skechers U S A, Inc. (SKX) has seen bad performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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