Why Should You Put Abercrombie & Fitch Co. (NYSE: ANF) On Your Portfolio?


    BlackRock Fund Advisors recently announced the acquisition of new stake in Abercrombie & Fitch Co. (NYSE:ANF). The institutional investor has increased its shareholding in the Consumer Cyclical company by 0.90% to 9.06 million shares with purchase of 80616.0 shares. This fresh investment now brings its stake to 14.52% valued currently at $87.22 million. In addition, Prentice Capital Management LP raised its holdings by 0.13 million to 3.8 million shares. And SSgA Funds Management, Inc. has lifted its position by 4.88% or 0.17 million shares – to 3.68 million shares.

    With over 2.5 million Abercrombie & Fitch Co. (ANF) shares trading Monday and a closing price of $10.58 on the day, the dollar volume was approximately $26.41 million. The shares have shown a negative weekly performance of -5.03% and its price on 08/24/20 gained nearly 4.65%. Currently, there are 62.54M common shares owned by the public and among those 61.01M 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: 14 analysts who have offered their price forecasts for ANF have a consensus price objective of $12.25. The analysts have set the share’s price value over the next 12 months at a high of $17.00 and a low of $8.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Abercrombie & Fitch Co. stock is 2.70 for the next 12 months. The average price target is 14.81% above its last price level and an upside to the estimated low will see the stock lose -32.25% over that period. But an upside of 37.76% will see the stock hit the forecast high price target while mean target price for the stock is $12.50.

    Insiders at the company have transacted a total of 49 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 32 of these insider trades were purchases, accounting for 857,683 shares. Insider sales of the common stock occurred on 17 occasions, with total insider shares sold totaling 305,398 shares.

    The top 3 mutual fund holders in Abercrombie & Fitch Co. are Contrarius ICAV – Global Equity F, iShares Core S&P Small Cap ETF, and Kempen Intl. Funds – Global Small. Contrarius ICAV – Global Equity F owns 4.79 million shares of the company’s stock, all valued at over $46.13 million. The company bought an additional 0.74 million shares recently to bring their total holdings to about 7.68% of the shares outstanding. iShares Core S&P Small Cap ETF bought 38515.0 shares to see its total holdings expand to 3.84 million shares valued at over $37.03 million and representing 6.16% of the shares outstanding. Kempen Intl. Funds – Global Small bought 0.58 million shares to bring its total holdings to over 1.92 million shares at a value of $18.48 million. Kempen Intl. Funds – Global Small now owns shares totaling to 3.08% of the shares outstanding.

    Shares of Abercrombie & Fitch Co. (NYSE: ANF) opened at $10.06, down -$0.05 from a prior closing price of $10.11. However, the script later closed the day at $10.58, up 4.65%. The company’s stock has a 5-day price change of -5.03% and -16.43% over the past three months. ANF shares are trading -38.81% year to date (YTD), with the 12-month market performance down to -35.61% lower. It has a 12-month low price of $7.41 and touched a high of $18.83 over the same period. Currently, 2.5 million shares have been traded, compared to an average intraday trading volume of 2.50 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 4.04%, 2.27%, and -18.89% respectively.

    Institutional ownership of Abercrombie & Fitch Co. (NYSE: ANF) 62.54M shares outstanding. Mutual fund holders own 5.17%, while other institutional holders and individual stakeholders account for 58.67% and 42.79% respectively.

    It has a market capitalization of $656.70M and a beta (3y monthly) value of 1.38. The earnings-per-share (ttm) stands at -$3.06. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.94% over the week and 4.92% over the month.

    Analysts forecast that Abercrombie & Fitch Co. (ANF) will achieve an EPS of -$0.83 for the current quarter, -$0.02 for the next quarter and $0.57 for 2022. The lowest estimate earnings-per-share for the quarter is -$1.04 while analysts give the company a high EPS estimate of -$0.5. Comparatively, EPS for the current quarter was -$0.48 a year ago. Earnings per share for the fiscal year are expected to decrease by -41.50%, and 120.40% over the next financial year. EPS should grow at an annualized rate of 18.00% over the next five years, compared to -3.30% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 14 brokerage firm advisors rate Abercrombie & Fitch Co. (ANF) as a “Moderate Buy” at a consensus score of 2.70. Specifically, 4 Wall Street analysts polled rate the stock as a buy, while 8 of the 14 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the ANF, a number of firms have released research notes about the stock. UBS stated their Neutral rating for the stock in a research note on August 12, 2020, with the firm’s price target at $10. B. Riley FBR coverage for the Abercrombie & Fitch Co. (ANF) stock in a research note released on April 03, 2020 offered a Buy rating with a price target of $11. Wedbush was of a view on March 11, 2020 that the stock is Outperform, while Telsey Advisory Group gave the stock Outperform rating on February 03, 2020, issuing a price target of $20- $21. DA Davidson on their part issued Neutral rating on September 18, 2019.


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