Growing Through Challenges? – Guess’ Inc. (GES)

DE Stock
DE Stock

Fidelity Management & Research Co.. recently announced the acquisition of new stake in Guess’ Inc. (NYSE:GES). The institutional investor has increased its shareholding in the Consumer Cyclical company by 0.02% to 9.46 million shares with purchase of 1470.0 shares. This fresh investment now brings its stake to 13.99% valued currently at $97.81 million. In addition, BlackRock Fund Advisors raised its holdings by 0.12 million to 6.31 million shares. And Dimensional Fund Advisors LP has lifted its position by 0.36% or 18810.0 shares – to 5.19 million shares.

With over 1.24 million Guess’ Inc. (GES) shares trading Friday and a closing price of $12.07 on the day, the dollar volume was approximately $14.91 million. The shares have shown a positive weekly performance of 9.73% and its price on 08/28/20 gained nearly 1.86%. Currently, there are 65.72M common shares owned by the public and among those 41.61M shares have been available to trade.

Incidentally, analysts’ outlook for the Guess’ Inc. stock is 2.40 for the next 12 months.

Insiders at the company have transacted a total of 20 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 16 of these insider trades were purchases, accounting for 1,327,956 shares. Insider sales of the common stock occurred on 4 occasions, with total insider shares sold totaling 106,931 shares.

The top 3 mutual fund holders in Guess’ Inc. are Fidelity Series Intrinsic Opportu, Fidelity Low Priced Stock Fund, and iShares Core S&P Small Cap ETF. Fidelity Series Intrinsic Opportu owns 4.6 million shares of the company’s stock, all valued at over $47.56 million. The company sold -0.24 million shares recently to bring their total holdings to about 6.80% of the shares outstanding. Fidelity Low Priced Stock Fund sold 52138.0 shares to see its total holdings shrink to 3.9 million shares valued at over $40.29 million and representing 5.76% of the shares outstanding. iShares Core S&P Small Cap ETF bought 9786.0 shares to bring its total holdings to over 2.74 million shares at a value of $28.3 million. iShares Core S&P Small Cap ETF now owns shares totaling to 4.05% of the shares outstanding.

Shares of Guess’ Inc. (NYSE: GES) opened at $12.15, up $0.3 from a prior closing price of $11.85. However, the script later closed the day at $12.07, up 1.86%. The company’s stock has a 5-day price change of 9.73% and 23.29% over the past three months. GES shares are trading -46.07% year to date (YTD), with the 12-month market performance down to -33.39% lower. It has a 12-month low price of $3.64 and touched a high of $23.58 over the same period. Currently, 1.24 million shares have been traded, compared to an average intraday trading volume of 1.58 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 1.21%, 12.44%, and -12.26% respectively.

Institutional ownership of Guess’ Inc. (NYSE: GES) shares accounts for 68.50% of the company’s 65.72M shares outstanding. Mutual fund holders own 46.04%, while other institutional holders and individual stakeholders account for 47.06% and 21.17% respectively.

It has a market capitalization of $801.09M and a beta (3y monthly) value of 1.80. The earnings-per-share (ttm) stands at -$0.69. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.07% over the week and 5.34% over the month.

Analysts forecast that Guess’ Inc. (GES) will achieve an EPS of -$0.57 for the current quarter, $0.05 for the next quarter and $1.13 for 2022. The lowest estimate earnings-per-share for the quarter is -$0.76 while analysts give the company a high EPS estimate of -$0.33. Comparatively, EPS for the current quarter was $0.38 a year ago. Earnings per share for the fiscal year are expected to increase by 454.10%, and 198.30% over the next financial year. EPS should grow at an annualized rate of 4.40% over the next five years, compared to 3.70% 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 Guess’ Inc. (GES) as a “Moderate Buy” at a consensus score of 2.40. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 3 of the 5 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the GES, 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 08, 2020, with the firm’s price target at $7-$14. Cowen coverage for the Guess’ Inc. (GES) stock in a research note released on March 24, 2020 offered a Market Perform rating with a price target of $8. Telsey Advisory Group was of a view on March 19, 2020 that the stock is Market Perform, while Cowen gave the stock Outperform rating on December 17, 2019, issuing a price target of $19- $26. Telsey Advisory Group on their part issued Market Perform rating on April 23, 2019.


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