Caleres Inc. (NYSE: CAL) Volatility Spurs A Quest For Clarity


The Vanguard Group, Inc. recently announced the acquisition of new stake in Caleres Inc. (NYSE:CAL). The institutional investor has increased its shareholding in the Consumer Cyclical company by 4.71% to 4.06 million shares with purchase of 0.18 million shares. This fresh investment now brings its stake to 10.47% valued currently at $33.85 million. In addition, Wellington Management Co. LLP raised its holdings by 0.13 million to 1.81 million shares. And Macquarie Investment Management B. has lifted its position by 0.25% or 4280.0 shares – to 1.69 million shares.

With over 0.82 million Caleres Inc. (CAL) shares trading Monday and a closing price of $6.91 on the day, the dollar volume was approximately $5.68 million. The shares have shown a negative weekly performance of -1.00% and its price on 07/20/20 lost nearly -6.87%. Currently, there are 38.65M common shares owned by the public and among those 37.09M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 5 analysts who have offered their price forecasts for CAL have a consensus price objective of $11.33. The analysts have set the share’s price value over the next 12 months at a high of $15.00 and a low of $7.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Caleres Inc. stock is 2.60 for the next 12 months. The average price target is 39.01% above its last price level and an upside to the estimated low will see the stock gain 1.29% over that period. But an upside of 53.93% will see the stock hit the forecast high price target while mean target price for the stock is $12.00.

Insiders at the company have transacted a total of 47 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 22 of these insider trades were purchases, accounting for 324,459 shares. Insider sales of the common stock occurred on 25 occasions, with total insider shares sold totaling 112,783 shares.

The top 3 mutual fund holders in Caleres Inc. are iShares Core S&P Small Cap ETF, Vanguard Total Stock Market Index, and Delaware Small Cap Value Fund. iShares Core S&P Small Cap ETF owns 2.53 million shares of the company’s stock, all valued at over $21.12 million. Delaware Small Cap Value Fund bought 0.15 million shares to bring its total holdings to over 1.1 million shares at a value of $9.18 million. Delaware Small Cap Value Fund now owns shares totaling to 2.84% of the shares outstanding.

Shares of Caleres Inc. (NYSE: CAL) opened at $7.29, down -$0.13 from a prior closing price of $7.42. However, the script later closed the day at $6.91, down -6.87%. The company’s stock has a 5-day price change of -1.00% and 22.30% over the past three months. CAL shares are trading -70.91% year to date (YTD), with the 12-month market performance down to -61.63% lower. It has a 12-month low price of $3.12 and touched a high of $24.86 over the same period. Currently, 0.82 million shares have been traded, compared to an average intraday trading volume of 1.16 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -9.90%, -10.52%, and -51.40% respectively.

Institutional ownership of Caleres Inc. (NYSE: CAL) shares accounts for 98.90% of the company’s 38.65M shares outstanding. Mutual fund holders own 4.90%, while other institutional holders and individual stakeholders account for 60.27% and 37.51% respectively.

It has a market capitalization of $277.99M and a beta (3y monthly) value of 2.07. The earnings-per-share (ttm) stands at -$7.63. Price movements for the stock have been influenced by the stock’s volatility, which stands at 7.65% over the week and 8.96% over the month.

Analysts forecast that Caleres Inc. (CAL) will achieve an EPS of -$1.09 for the current quarter, $0.28 for the next quarter and $1.47 for 2022. The lowest estimate earnings-per-share for the quarter is -$1.27 while analysts give the company a high EPS estimate of -$0.93. Comparatively, EPS for the current quarter was $0.62 a year ago. Earnings per share for the fiscal year are expected to increase by 783.00%, and 171.00% over the next financial year. EPS should grow at an annualized rate of 15.00% over the next five years, compared to -4.20% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 5 brokerage firm advisors rate Caleres Inc. (CAL) as a “Moderate Buy” at a consensus score of 2.60. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 3 of the 5 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the CAL, a number of firms have released research notes about the stock. Susquehanna stated their Positive rating for the stock in a research note on July 10, 2020, with the firm’s price target at. Susquehanna coverage for the Caleres Inc. (CAL) stock in a research note released on June 08, 2020 offered a Negative rating with a price target of $7. Susquehanna was of a view on March 13, 2020 that the stock is Neutral, while Needham gave the stock Hold rating on January 29, 2020, issuing a price target of. Needham on their part issued Buy rating on November 21, 2019.


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