Chico’s FAS Inc. (CHS): Street Finally Waking Up

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    BlackRock Fund Advisors recently announced the acquisition of new stake in Chico’s FAS Inc. (NYSE:CHS). The institutional investor has increased its shareholding in the Consumer Cyclical company by 0.23% to 17.21 million shares with purchase of 40040.0 shares. This fresh investment now brings its stake to 14.40% valued currently at $21.86 million. In addition, Contrarius Investment Management.. raised its holdings by 0.72 million to 6.4 million shares. And Charles Schwab Investment Managem.. has lifted its position by 4.82% or 0.25 million shares – to 5.33 million shares.

    With over 1.32 million Chico’s FAS Inc. (CHS) shares trading Friday and a closing price of $1.33 on the day, the dollar volume was approximately $1.76 million. The shares have shown a negative weekly performance of -13.07% and its price on 08/21/20 lost nearly -5.67%. Currently, there are 115.57M common shares owned by the public and among those 110.65M 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: 4 analysts who have offered their price forecasts for CHS have a consensus price objective of $2.19. The analysts have set the share’s price value over the next 12 months at a high of $3.00 and a low of $1.75 should the stock experience a downside. Incidentally, analysts’ outlook for the Chico’s FAS Inc. stock is 2.70 for the next 12 months. The average price target is 39.27% above its last price level and an upside to the estimated low will see the stock gain 24.0% over that period. But an upside of 55.67% will see the stock hit the forecast high price target while mean target price for the stock is $2.00.

    Insiders at the company have transacted a total of 39 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 23 of these insider trades were purchases, accounting for 1,110,539 shares. Insider sales of the common stock occurred on 16 occasions, with total insider shares sold totaling 487,773 shares.

    The top 3 mutual fund holders in Chico’s FAS Inc. are iShares Core S&P Small Cap ETF, Contrarius ICAV – Global Equity F, and Canada Pension Plan. iShares Core S&P Small Cap ETF owns 7.51 million shares of the company’s stock, all valued at over $9.54 million. The company bought an additional 0.18 million shares recently to bring their total holdings to about 6.28% of the shares outstanding. Contrarius ICAV – Global Equity F bought 1.63 million shares to see its total holdings expand to 5.39 million shares valued at over $6.84 million and representing 4.51% of the shares outstanding. Canada Pension Plan bought 3.51 million shares to bring its total holdings to over 4.44 million shares at a value of $5.63 million. Canada Pension Plan now owns shares totaling to 3.71% of the shares outstanding.

    Shares of Chico’s FAS Inc. (NYSE: CHS) opened at $1.41, unchanged from a prior closing price of $1.41. However, the script later closed the day at $1.33, down -5.67%. The company’s stock has a 5-day price change of -13.07% and 2.31% over the past three months. CHS shares are trading -65.09% year to date (YTD), with the 12-month market performance down to -59.45% lower. It has a 12-month low price of $0.93 and touched a high of $5.14 over the same period. Currently, 1.32 million shares have been traded, compared to an average intraday trading volume of 2.58 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 -5.44%, -4.45%, and -47.65% respectively.

    Institutional ownership of Chico’s FAS Inc. (NYSE: CHS) shares accounts for 85.70% of the company’s 115.57M shares outstanding. Mutual fund holders own 55.09%, while other institutional holders and individual stakeholders account for 8.92% and 29.37% respectively.

    It has a market capitalization of $168.60M and a beta (3y monthly) value of 1.19. The earnings-per-share (ttm) stands at -$1.67. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.03% over the week and 6.60% over the month.

    Analysts forecast that Chico’s FAS Inc. (CHS) will achieve an EPS of -$0.25 for the current quarter, -$0.07 for the next quarter and -$0.05 for 2022. The lowest estimate earnings-per-share for the quarter is -$0.38 while analysts give the company a high EPS estimate of -$0.17. Comparatively, EPS for the current quarter was $0 a year ago. Earnings per share for the fiscal year are expected to decrease by -145.70%, and 97.20% over the next financial year. EPS should grow at an annualized rate of 10.00% over the next five years, compared to -17.70% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 4 brokerage firm advisors rate Chico’s FAS Inc. (CHS) as a “Moderate Buy” at a consensus score of 2.70. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 3 of the 4 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the CHS, 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 November 27, 2019, with the firm’s price target at $3-$5. Telsey Advisory Group coverage for the Chico’s FAS Inc. (CHS) stock in a research note released on August 29, 2019 offered a Market Perform rating with a price target of $3. Telsey Advisory Group was of a view on June 12, 2019 that the stock is Market Perform, while BofA/Merrill gave the stock Underperform rating on November 29, 2018, issuing a price target of $6.50- $4. RBC Capital Mkts on their part issued Sector Perform rating on November 29, 2018.

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