Skechers U S A, Inc. (NYSE: SKX)’s stock price has dropped by -3.93 in relation to previous closing price of 61.63. Nevertheless, the company has seen a loss of -6.18% in its stock price over the last five trading days. seekingalpha.com reported 2024-10-25 that Skechers U.S.A., Inc. posted 16% YoY growth in 3Q24, driven by strong U.S. wholesale performance, and expects a positive holiday season despite challenges in China. The company has built a strong value brand with a wide retail footprint, leveraging licensees for operational flexibility and reduced CAPEX risk. Skechers’ valuation appears low at 14x FY24E earnings, but concerns over cyclicality and high margins suggest it is fairly valued, not a screaming buy.
Is It Worth Investing in Skechers U S A, Inc. (NYSE: SKX) Right Now?
The price-to-earnings ratio for Skechers U S A, Inc. (NYSE: SKX) is 14.58x, which is above its average ratio. Moreover, the 36-month beta value for SKX is 1.23. Analysts have varying opinions on the stock, with 5 analysts rating it as a “buy,” 5 as “overweight,” 2 as “hold,” and 0 as “sell.”
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The public float for SKX is 131.44M and currently, short sellers hold a 4.30% of that float. On October 28, 2024, SKX’s average trading volume was 2.08M shares.
SKX’s Market Performance
The stock of Skechers U S A, Inc. (SKX) has seen a -6.18% decrease in the past week, with a -14.47% drop in the past month, and a -8.80% fall in the past quarter. The volatility ratio for the week is 3.55%, and the volatility levels for the past 30 days are at 2.79% for SKX. The simple moving average for the last 20 days is -8.21% for SKX’s stock, with a simple moving average of -8.10% for the last 200 days.
Analysts’ Opinion of SKX
Many brokerage firms have already submitted their reports for SKX stocks, with Morgan Stanley repeating the rating for SKX by listing it as a “Overweight.” The predicted price for SKX in the upcoming period, according to Morgan Stanley is $80 based on the research report published on July 23, 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 $87, previously predicting the price at $71. The rating they have provided for SKX stocks is “Buy” according to the report published on June 07th, 2024.
Barclays gave a rating of “Overweight” to SKX, setting the target price at $71 in the report published on April 01st of the current year.
SKX Trading at -10.17% 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 -21.15% of loss for the given period.
Volatility was left at 2.79%, however, over the last 30 days, the volatility rate increased by 3.55%, as shares sank -13.54% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -8.89% lower at present.
During the last 5 trading sessions, SKX fell by -6.18%, which changed the moving average for the period of 200-days by -5.96% in comparison to the 20-day moving average, which settled at $64.51. In addition, Skechers U S A, Inc. saw -5.02% 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 MICHAEL, who sale 422,000 shares at the price of $69.88 back on Aug 27 ’24. After this action, GREENBERG MICHAEL now owns 170,160 shares of Skechers U S A, Inc., valued at $29,488,938 using the latest closing price.
THE MICHAEL GREENBERG TRUST, the Officer of Skechers U S A, Inc., proposed sale 422,000 shares at $69.86 during a trade that took place back on Aug 27 ’24, which means that THE MICHAEL GREENBERG TRUST is holding shares at $29,482,985 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 0.14. Equity return is now at value 15.10, with 7.90 for asset returns.
Based on Skechers U S A, Inc. (SKX), the company’s capital structure generated 0.17 points at debt to capital in total, while cash flow to debt ratio is standing at 1.24. The debt to equity ratio resting at 0.21. The interest coverage ratio of the stock is 155.19.
Currently, EBITDA for the company is 966.71 million with net debt to EBITDA at -0.45. When we switch over and look at the enterprise to sales, we see a ratio of 0.99. The receivables turnover for the company is 6.78for trailing twelve months and the total asset turnover is 1.01. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.96.
Conclusion
To wrap up, the performance of Skechers U S A, Inc. (SKX) has been bad in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. 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.
