Destination XL Group Inc (NASDAQ: DXLG)’s stock price has gone decline by -10.08 in comparison to its previous close of 2.58, however, the company has experienced a -18.31% decrease in its stock price over the last five trading days. seekingalpha.com reported 2024-11-22 that Destination XL Group, Inc. reported a 10-11% drop in comparable sales for Q3 2024, leading to a significant margin decline and a second guidance cut this year. Despite efforts to maintain margins, the company has resorted to aggressive discounting to compete, impacting future margins and profitability. DXLG’s valuation is distressed, reflecting its current unprofitability; however, a 10% sales improvement could make the stock attractive given its low EV.
Is It Worth Investing in Destination XL Group Inc (NASDAQ: DXLG) Right Now?
Destination XL Group Inc (NASDAQ: DXLG) has a price-to-earnings ratio that is above its average at 15.12x. The stock has a 36-month beta value of 1.34. Opinions on the stock are mixed, with 1 analysts rating it as a “buy,” 1 as “overweight,” 1 as “hold,” and 0 as “sell.”
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The public float for DXLG is 52.94M, and at present, short sellers hold a 8.90% of that float. On November 25, 2024, the average trading volume of DXLG was 350.71K shares.
DXLG’s Market Performance
DXLG’s stock has seen a -18.31% decrease for the week, with a -13.75% drop in the past month and a -20.82% fall in the past quarter. The volatility ratio for the week is 7.01%, and the volatility levels for the past 30 days are at 5.34% for Destination XL Group Inc The simple moving average for the past 20 days is -16.49% for DXLG’s stock, with a -28.88% simple moving average for the past 200 days.
Analysts’ Opinion of DXLG
Many brokerage firms have already submitted their reports for DXLG stocks, with Craig Hallum repeating the rating for DXLG by listing it as a “Hold.” The predicted price for DXLG in the upcoming period, according to Craig Hallum is $4.50 based on the research report published on November 20, 2023 of the previous year 2023.
DA Davidson, on the other hand, stated in their research note that they expect to see DXLG reach a price target of $11. The rating they have provided for DXLG stocks is “Buy” according to the report published on September 14th, 2021.
DXLG Trading at -17.13% from the 50-Day Moving Average
After a stumble in the market that brought DXLG to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -51.25% of loss for the given period.
Volatility was left at 5.34%, however, over the last 30 days, the volatility rate increased by 7.01%, as shares sank -12.78% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -16.85% lower at present.
During the last 5 trading sessions, DXLG fell by -18.31%, which changed the moving average for the period of 200-days by -40.36% in comparison to the 20-day moving average, which settled at $2.78. In addition, Destination XL Group Inc saw -47.27% 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 DXLG starting from Fund 1 Investments, LLC, who sale 225,000 shares at the price of $3.15 back on May 03 ’24. After this action, Fund 1 Investments, LLC now owns 5,691,577 shares of Destination XL Group Inc, valued at $708,795 using the latest closing price.
Molloy Robert S, the General Counsel & Secretary of Destination XL Group Inc, sale 20,000 shares at $4.00 during a trade that took place back on Feb 15 ’24, which means that Molloy Robert S is holding 240,409 shares at $80,006 based on the most recent closing price.
Stock Fundamentals for DXLG
Current profitability levels for the company are sitting at:
- 0.03 for the present operating margin
- 0.46 for the gross margin
The net margin for Destination XL Group Inc stands at 0.02. The total capital return value is set at 0.05. Equity return is now at value 6.48, with 2.55 for asset returns.
Currently, EBITDA for the company is 55.89 million with net debt to EBITDA at -0.25. When we switch over and look at the enterprise to sales, we see a ratio of 0.26. The receivables turnover for the company is 577.33for trailing twelve months and the total asset turnover is 1.27. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.57.
Conclusion
To sum up, Destination XL Group Inc (DXLG) has seen a bad performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others 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.
