Coronation Fund Managers Ltd., a reputable investment management firm, recently reduced its holdings in Skechers U.S.A., Inc. (NYSE:SKX) by 72.8% during the second quarter of this year. This information was disclosed in its latest Form 13F filing with the Securities and Exchange Commission.
Prior to the sell-off, Coronation Fund Managers Ltd. owned 196,042 shares of Skechers U.S.A., but after disposing of 142,741 shares during the second quarter, its remaining holdings amounted to 53,301 shares. Based on the current valuation of these shares, Coronation Fund Managers’ stake in the company is valued at approximately $2,807,000.
Skechers U.S.A., Inc. is a globally recognized footwear company that focuses on designing, developing, marketing, and distributing a wide range of footwear for men, women, and children. The company operates through two segments: Wholesale and Direct-to-Consumer.
Under various well-known brands including Skechers USA, Skechers Sport, Skechers Active, Modern Comfort, Skechers Street, Foamies, Mark Nason, and BOBS among others; Skechers U.S.A. offers an extensive collection of casual athletic shoes along with trail shoes, sandals, boots, and retro fashion footwear for both men and women.
For younger consumers specifically, the company provides sneakers that prioritize comfort and style under brands such as S-Lights , Skech-Air , Foamies , Twinkle Toes , Skechers Stretch Fit , and Skechers Street. Additionally; it also manufactures technical footwear under brands like Skechers GOrun , Skechers GOwalk , Skechers GOtrain , Skechers GOtrail ,and even has a line for pickleball enthusiasts known as Skecher Viper Court.
Considering Coronation Fund Managers’ position reduction in this major player within the textile industry warrants closer attention from investors who are interested in the performance of Skechers U.S.A., Inc. It highlights the firm’s decision to make adjustments to its investment portfolio during the evaluated period.
As of this reporting date, October 12, 2023, it is essential for investors to stay updated on this evolving situation by monitoring any further disclosures made by Coronation Fund Managers Ltd. as well as additional financial reports released by Skechers U.S.A., Inc. This will facilitate a more comprehensive understanding of potential market trends and help inform future investment decisions.
Skechers U.S.A. Demonstrates Solid Performance and Growth Potential, Attracting Institutional Investors and Hedge Funds
Skechers U.S.A. (NYSE:SKX) has recently seen a number of hedge funds modifying their holdings in the company. Advisors Asset Management Inc., for instance, acquired a new stake in Skechers during the first quarter, valued at $25,000. Similarly, Fred Alger Management LLC also acquired a new position during the same period, worth approximately $26,000. Quent Capital LLC increased its holdings in Skechers by 122.4% in the first quarter, and Exchange Traded Concepts LLC bought a new position in the company in the second quarter.
Institutional investors and hedge funds now own 80.54% of Skechers’ stock. This level of interest from major players in the financial industry showcases their belief in the potential growth and profitability of the textile maker.
Meanwhile, research reports have also shed light on Skechers’ performance and future prospects. UBS Group boosted their target price on Skechers from $63.00 to $68.00 and gave it a “buy” rating in their research report. TD Cowen also increased their price objective on shares of Skechers to $67.00 and gave it an “outperform” rating.
Despite these positive assessments, Morgan Stanley gave Skechers an “equal weight” rating but still raised its target price from $48.00 to $49.00.
Piper Sandler upgraded its rating for Skechers from “neutral” to “overweight,” setting a new price objective of $59.00.
The consensus among Bloomberg analysts is that Skechers U.S.A currently has a “Moderate Buy” rating with an average target price of $59.33.
As far as market performance goes, on October 12th NYSE:SKX opened at $48.48 per share—a significant figure that reflects investors’ trust in the brand’s potential for growth.
Skechers U.S.A., Inc., with its 1-year low of $32.01 and a 1-year high of $56.53, stands out as a major player in the industry. With a market capitalization of $7.50 billion, the company’s financial stability further highlights its attractiveness to investors.
The textile maker has a solid reputation for delivering impressive earnings per share (EPS). In its quarterly report for July 27th, Skechers reported an EPS of $0.98, surpassing the consensus estimate by $0.46. The company’s revenue for the same period stood at $2.01 billion, exceeding expectations by approximately $90 million.
Skechers U.S.A.’s net margin is currently at 6.11%, indicative of a healthy profit margin in comparison to others in the industry. Furthermore, its return on equity comes in at 11.97%, reflecting efficient use of shareholders’ investments.
With a current ratio of 2.48 and quick ratio of 1.48, Skechers demonstrates strong liquidity and the ability to address short-term obligations without straining its financial position.
The company’s debt-to-equity ratio remains low at 0.06, suggesting that Skechers manages its debt effectively and has limited exposure to financial risk.
In conclusion, Skechers U.S.A continues to be an attractive investment option for institutional investors and hedge funds due to its strong performance and potential for growth within the textile industry.