Designer Brands Inc. (DBI): A Great Stock For Handling Current Market Conditions?


BlackRock Fund Advisors recently announced the acquisition of new stake in Designer Brands Inc. (NYSE:DBI). The institutional investor has increased its shareholding in the Consumer Cyclical company by 2.01% to 8.32 million shares with purchase of 0.16 million shares. This fresh investment now brings its stake to 12.93% valued currently at $49.19 million. In addition, Investment Counselors of Maryland.. raised its holdings by 0.57 million to 3.21 million shares. And SSgA Funds Management, Inc. has lifted its position by 4.30% or 0.11 million shares – to 2.6 million shares.

With over 1.97 million Designer Brands Inc. (DBI) shares trading Monday and a closing price of $7.05 on the day, the dollar volume was approximately $13.91 million. The shares have shown a positive weekly performance of 1.15% and its price on 08/31/20 lost nearly -5.11%. Currently, there are 71.91M common shares owned by the public and among those 59.33M 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: 9 analysts who have offered their price forecasts for DBI have a consensus price objective of $7.86. The analysts have set the share’s price value over the next 12 months at a high of $11.00 and a low of $5.50 should the stock experience a downside. Incidentally, analysts’ outlook for the Designer Brands Inc. stock is 2.90 for the next 12 months. The average price target is 12.64% above its last price level and an upside to the estimated low will see the stock lose -28.18% over that period. But an upside of 35.91% 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 39 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 24 of these insider trades were purchases, accounting for 505,361 shares. Insider sales of the common stock occurred on 15 occasions, with total insider shares sold totaling 163,307 shares.

The top 3 mutual fund holders in Designer Brands Inc. are iShares Core S&P Small Cap ETF, Undiscovered Managers Behavioral, and Vanguard Total Stock Market Index. iShares Core S&P Small Cap ETF owns 3.45 million shares of the company’s stock, all valued at over $20.41 million. The company bought an additional 12348.0 shares recently to bring their total holdings to about 5.37% of the shares outstanding. Undiscovered Managers Behavioral bought 0.15 million shares to see its total holdings expand to 3.24 million shares valued at over $19.14 million and representing 5.03% of the shares outstanding. Vanguard Total Stock Market Index sold 64911.0 shares to bring its total holdings to over 1.69 million shares at a value of $9.97 million. Vanguard Total Stock Market Index now owns shares totaling to 2.62% of the shares outstanding.

Shares of Designer Brands Inc. (NYSE: DBI) opened at $7.30, down -$0.13 from a prior closing price of $7.43. However, the script later closed the day at $7.05, down -5.11%. The company’s stock has a 5-day price change of 1.15% and 5.86% over the past three months. DBI shares are trading -55.21% year to date (YTD), with the 12-month market performance down to -57.25% lower. It has a 12-month low price of $2.60 and touched a high of $19.08 over the same period. Currently, 1.97 million shares have been traded, compared to an average intraday trading volume of 1.87 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 2.31%, 7.74%, and -29.11% respectively.

Institutional ownership of Designer Brands Inc. (NYSE: DBI) shares accounts for 97.70% of the company’s 71.91M shares outstanding. Mutual fund holders own 41.69%, while other institutional holders and individual stakeholders account for 55.67% and 4.40% respectively.

It has a market capitalization of $491.95M and a beta (3y monthly) value of 1.85. The earnings-per-share (ttm) stands at -$2.14. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.21% over the week and 6.62% over the month.

Analysts forecast that Designer Brands Inc. (DBI) will achieve an EPS of $SPDR Series Trust SPDR S&P Bio for the current quarter, $111.80 for the next quarter and $ETF for Type. The lowest estimate earnings-per-share for the quarter is $BBI while analysts give the company a high EPS estimate of $D.R. Horton, Inc. Comparatively, EPS for the current quarter was $Darden Restaurants, Inc. a year ago. Earnings per share for the fiscal year are expected to increase by 653.20%, and 140.40% over the next financial year. EPS should grow at an annualized rate of 14.68% over the next five years, compared to -5.60% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 9 brokerage firm advisors rate Designer Brands Inc. (DBI) as a “Moderate Buy” at a consensus score of 2.90. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 6 of the 9 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the DBI, a number of firms have released research notes about the stock. Needham stated their Buy rating for the stock in a research note on June 15, 2020, with the firm’s price target at $11-$9. Standpoint Research coverage for the Designer Brands Inc. (DBI) stock in a research note released on May 18, 2020 offered a Buy rating with a price target of. Susquehanna was of a view on April 06, 2020 that the stock is Neutral, while Wells Fargo gave the stock Underweight rating on March 30, 2020, issuing a price target of $10- $6. Telsey Advisory Group on their part issued Market Perform rating on March 18, 2020.


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