Signet Jewelers Limited (NYSE: SIG): Stock That Needs Special Handling

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    Select Equity Group LP recently announced the acquisition of new stake in Signet Jewelers Limited (NYSE:SIG). The institutional investor has increased its shareholding in the Consumer Cyclical company by 135.92% to 8.03 million shares with purchase of 4.63 million shares. This fresh investment now brings its stake to 15.36% valued currently at $82.47 million. In addition, Dimensional Fund Advisors LP raised its holdings by 0.27 million to 3.27 million shares. And D. E. Shaw & Co. LP has lifted its position by 86.30% or 1.23 million shares – to 2.66 million shares.

    With over 2.0 million Signet Jewelers Limited (SIG) shares trading Thursday and a closing price of $11.21 on the day, the dollar volume was approximately $22.41 million. The shares have shown a negative weekly performance of -8.79% and its price on 07/30/20 lost nearly -8.71%. Currently, there are 51.80M common shares owned by the public and among those 50.91M 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 SIG have a consensus price objective of $9.00. The analysts have set the share’s price value over the next 12 months at a high of $15.00 and a low of $5.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Signet Jewelers Limited stock is 3.80 for the next 12 months. The average price target is -24.56% below its last price level and a downside to the estimated low will see the stock lose -124.2% over that period. But an upside of 25.27% will see the stock hit the forecast high price target while mean target price for the stock is $8.00.

    Insiders at the company have transacted a total of 109 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 68 of these insider trades were purchases, accounting for 1,163,035 shares. Insider sales of the common stock occurred on 41 occasions, with total insider shares sold totaling 38,561 shares.

    The top 3 mutual fund holders in Signet Jewelers Limited 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 3.24 million shares of the company’s stock, all valued at over $33.23 million. Vanguard Total Stock Market Index sold 75470.0 shares to see its total holdings shrink to 1.43 million shares valued at over $14.64 million and representing 2.73% of the shares outstanding. Vanguard Small Cap Index Fund sold -0.11 million shares to bring its total holdings to over 1.25 million shares at a value of $12.8 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.38% of the shares outstanding.

    Shares of Signet Jewelers Limited (NYSE: SIG) opened at $11.96, down -$0.32 from a prior closing price of $12.28. However, the script later closed the day at $11.21, down -8.71%. The company’s stock has a 5-day price change of -8.79% and 11.43% over the past three months. SIG shares are trading -48.44% year to date (YTD), with the 12-month market performance down to -38.20% lower. It has a 12-month low price of $5.60 and touched a high of $31.44 over the same period. Currently, 2.0 million shares have been traded, compared to an average intraday trading volume of 2.65 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 -0.02%, -2.28%, and -27.79% respectively.

    Institutional ownership of Signet Jewelers Limited (NYSE: SIG) 51.80M shares outstanding. Mutual fund holders own 46.21%, while other institutional holders and individual stakeholders account for 69.36% and 4.66% respectively.

    It has a market capitalization of $610.83M and a beta (3y monthly) value of 2.34. The earnings-per-share (ttm) stands at -$2.23. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.18% over the week and 7.04% over the month.

    Analysts forecast that Signet Jewelers Limited (SIG) will achieve an EPS of -$1.94 for the current quarter, -$1.28 for the next quarter and $1.88 for 2022. The lowest estimate earnings-per-share for the quarter is -$3.46 while analysts give the company a high EPS estimate of -$0.99. Comparatively, EPS for the current quarter was $0.51 a year ago. Earnings per share for the fiscal year are expected to increase by 111.10%, and 190.80% over the next financial year. EPS should grow at an annualized rate of 7.00% over the next five years, compared to -21.70% 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 Signet Jewelers Limited (SIG) as a “Hold” at a consensus score of 3.80. Specifically, 0 Wall Street analysts polled rate the stock as a buy, while 2 of the 5 advise that investors “hold,” and 2 rated it as a “Sell.”

    Looking at the support for the SIG, a number of firms have released research notes about the stock. Telsey Advisory Group stated their Market Perform rating for the stock in a research note on June 05, 2020, with the firm’s price target at $10-$15. BofA/Merrill coverage for the Signet Jewelers Limited (SIG) stock in a research note released on March 27, 2020 offered a Underperform rating with a price target of $8. Telsey Advisory Group was of a view on January 17, 2020 that the stock is Market Perform, while Wells Fargo gave the stock Underweight rating on January 02, 2020, issuing a price target of $12. Telsey Advisory Group on their part issued Outperform rating on December 06, 2019.

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