Is Abercrombie & Fitch Co. (NYSE: ANF) Proving The Doubters Wrong?


    BlackRock Fund Advisors has recently announced that it has increased stake in Abercrombie & Fitch Co. (NYSE:ANF) by 0.90%. After grabbing 9.06 million shares, the institutional investor is now in possession of 80616.0 shares of the Consumer Cyclical Company. The new investment brought the stake of investor firm to 14.52% having worth around $87.22 million. Moreover, Prentice Capital Management LP increased its share by 0.13 million to have a control over 3.8 million shares. And SSgA Funds Management, Inc. raised its holdings to 0.17 million shares by acquiring 3.68 million shares or 5.91% of the stake.

    Abercrombie & Fitch Co. (ANF) concluded trading on 08/27/20 at a closing price of $12.03, with 13.7 million shares of worth about $164.83 million changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 19.58% during that period and on Thursday the price saw a gain of about 8.09%. Currently the company’s common shares owned by public are about 62.54M shares, out of which, 61.01M shares are available for trading.

    A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 14 analysts are covering the ANF stock and their offered price forecasts bring an average price target of $12.50. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $17.00 and could fall to a lowest price of $8.00. Analysts also issued an outlook of 2.70 for the Abercrombie & Fitch Co. stock for next 12 months. The stock’s current price level is 3.14% above of average price target set by the analysts, while a rise to estimated low would result in loss of -50.37 for the stock. However, touching the estimated high of $17.00 would mean a gain of 29.24% for the stock.

    According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 49 times over the past 12 months. They bought 857,683 shares in 32 of the transactions. In 17 selling transactions, insiders dumped 305,398 shares.

    Contrarius ICAV – Global Equity F, iShares Core S&P Small Cap ETF, and Kempen Intl. Funds – Global Small are the top 3 mutual funds which are holding stakes in Abercrombie & Fitch Co. Contrarius ICAV – Global Equity F is currently holding 4.79 million shares of worth totaling $46.13 million. The company recently came buying 0.74 million shares which brought its stake up to 7.68% of the company’s outstanding shares. iShares Core S&P Small Cap ETF bought 38515.0 shares, after which its hold over company’s outstanding shares expand to 6.16%, leaving 3.84 million shares with the mutual fund that have a worth of about $37.03 million. Kempen Intl. Funds – Global Small, after buying 1.92 million shares, have now control over 3.08% of the stake in the company. It holds 0.58 million shares of worth $18.48 million.

    Abercrombie & Fitch Co. (NYSE: ANF) started trading at $12.61, above $1.48 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $12.03, or with a gain of 8.09%. Stock saw a price change of 19.58% in past 5 days and over the past one month there was a price change of 16.46%. Year-to-date (YTD), ANF shares are showing a performance of -30.42% which decreased to -29.32% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $7.41 but also hit the highest price of $18.83 during that period. While comparing its average daily trading volume of 2.53 million shares, we see that about 13.7 million changed hands on the day. The stock is currently trading 16.87% above its 20-day simple moving average (SMA20), while that difference is up 16.82% for SMA50 and it goes to -7.02% lower than SMA200.

    BlackRock Fund Advisors acquired 9.06 million shares of Abercrombie & Fitch Co. having value of about $87.22 million. Data submitted at the U.S SEC by BlackRock Fund Advisors revealed that the firm now holds 80616.0 shares in the company valued at close to $969810.48, or have control over 0.90% stake in the company. Holding of mutual funds in the company is about 5.17% while other institutional holders and individual stake holders have control over 58.67% and 42.79% of the stake respectively.

    The stock has a current market capitalization of $746.70M and its 3Y-monthly beta is at 1.38. It has posted earnings per share of -$3.06 in the same period. It has Quick Ratio of 0.90 while making debt-to-equity ratio of 0.56. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for ANF, volatility over the week remained 6.40% while standing at 5.23% over the month.

    Analysts are in expectations that Abercrombie & Fitch Co. (ANF) stock would likely to be making an EPS of -$0.83 in the current quarter, while forecast for next quarter ESPS is -$0.02 and it is $0.57 for next year. For the current quarter EPS, analysts have given the company a lowest target -$1.04 which is -$0.5 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of -$0.48 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -41.50% while it is estimated to increase by 120.40% in next year. EPS is likely to grow at an annualized rate of 18.00% for next 5-years, compared to annual growth of -3.30% made by the stock over the past 5-years.

    Analysts at 14 brokerage firms have issued recommendations for the Abercrombie & Fitch Co. (ANF)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.70. Out of those 14 Wall Street analysts, 4 recommended a “Buy” rating, while 8 were in favor recommending the stock as a “Hold” and 1 analyst recommended the stock as “Sell”.

    Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by UBS on August 12, 2020 offering a Neutral rating for the stock and assigned a target price of $10 to it. Coverage by B. Riley FBR stated Abercrombie & Fitch Co. (ANF) stock as a Buy in their note to investors on April 03, 2020, suggesting a price target of $11 for the stock. On March 11, 2020, Wedbush Upgrade their recommendations, while on February 03, 2020, Telsey Advisory Group Upgrade their ratings for the stock with a price target of $21. Stock get a Neutral rating from DA Davidson on September 18, 2019.


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