Crocs Inc. (NASDAQ: CROX): The Best-Of-Breed For Investing?


The Vanguard Group, Inc. recently announced the acquisition of new stake in Crocs Inc. (NASDAQ:CROX). The institutional investor has increased its shareholding in the Consumer Cyclical company by 1.02% to 6.8 million shares with purchase of 68412.0 shares. This fresh investment now brings its stake to 10.09% valued currently at $250.34 million. In addition, Renaissance Technologies LLC raised its holdings by 8779.0 to 4.81 million shares. And Woodson Capital Management LP has lifted its position by 140.00% or 1.4 million shares – to 2.4 million shares.

With over 0.81 million Crocs Inc. (CROX) shares trading Tuesday and a closing price of $36.32 on the day, the dollar volume was approximately $29.52 million. The shares have shown a positive weekly performance of 4.10% and its price on 07/21/20 gained nearly 1.37%. Currently, there are 67.93M common shares owned by the public and among those 65.86M 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: 10 analysts who have offered their price forecasts for CROX have a consensus price objective of $34.44. The analysts have set the share’s price value over the next 12 months at a high of $50.00 and a low of $20.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Crocs Inc. stock is 1.90 for the next 12 months. The average price target is -7.52% below its last price level and a downside to the estimated low will see the stock lose -81.6% over that period. But an upside of 27.36% will see the stock hit the forecast high price target while mean target price for the stock is $40.00.

Insiders at the company have transacted a total of 42 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 21 of these insider trades were purchases, accounting for 469,987 shares. Insider sales of the common stock occurred on 21 occasions, with total insider shares sold totaling 7,237,062 shares.

The top 3 mutual fund holders in Crocs Inc. are iShares Core S&P Small Cap ETF, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. iShares Core S&P Small Cap ETF owns 4.15 million shares of the company’s stock, all valued at over $152.93 million. Vanguard Total Stock Market Index sold 46540.0 shares to see its total holdings shrink to 1.82 million shares valued at over $67.11 million and representing 2.71% of the shares outstanding. Vanguard Small Cap Index Fund sold 85957.0 shares to bring its total holdings to over 1.6 million shares at a value of $58.92 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.38% of the shares outstanding.

Shares of Crocs Inc. (NASDAQ: CROX) opened at $34.96, down -$0.87 from a prior closing price of $35.83. However, the script later closed the day at $36.32, up 1.37%. The company’s stock has a 5-day price change of 4.10% and 55.92% over the past three months. CROX shares are trading -14.47% year to date (YTD), with the 12-month market performance up to 54.24% higher. It has a 12-month low price of $8.40 and touched a high of $43.79 over the same period. Currently, 0.81 million shares have been traded, compared to an average intraday trading volume of 1.33 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 4.10%, 15.01%, and 15.63% respectively.

Institutional ownership of Crocs Inc. (NASDAQ: CROX) shares accounts for 95.50% of the company’s 67.93M shares outstanding. Mutual fund holders own 42.92%, while other institutional holders and individual stakeholders account for 51.61% and 24.19% respectively.

It has a market capitalization of $2.53B and a beta (3y monthly) value of 1.85. The stock’s trailing 12-month PE ratio is 23.92, while the earnings-per-share (ttm) stands at $1.50. The company has a PEG of 2.39 and a Quick Ratio of 1.30 with the debt-to-equity ratio at 0.00. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.73% over the week and 5.37% over the month.

Analysts forecast that Crocs Inc. (CROX) will achieve an EPS of $0.14 for the current quarter, $0.47 for the next quarter and $1.75 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.09 while analysts give the company a high EPS estimate of $0.33. Comparatively, EPS for the current quarter was $0.59 a year ago. Earnings per share for the fiscal year are expected to increase by 264.60%, and 67.95% over the next financial year. EPS should shrink at an annualized rate of 10.00% over the next five years, compared to 56.80% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 10 brokerage firm advisors rate Crocs Inc. (CROX) as a “Strong Buy” at a consensus score of 1.90. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 4 of the 10 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the CROX, a number of firms have released research notes about the stock. UBS stated their Neutral rating for the stock in a research note on July 22, 2020, with the firm’s price target at $40. CL King coverage for the Crocs Inc. (CROX) stock in a research note released on July 17, 2020 offered a Neutral rating with a price target of. Loop Capital was of a view on June 30, 2020 that the stock is Buy, while Monness Crespi & Hardt gave the stock Buy rating on June 08, 2020, issuing a price target of $30- $40. B. Riley FBR on their part issued Neutral rating on May 22, 2020.


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