Sanctuary Advisors LLC Invests in Skechers U.S.A., Inc. (NYSE:SKX)

Sanctuary Advisors LLC has recently made a significant move by acquiring a new stake in Skechers U.S.A., Inc. (NYSE:SKX). During the second quarter of the year, as noted in their latest Form 13F filing with the Securities and Exchange Commission, the firm purchased 15,702 shares of Skechers stock, which is valued at approximately $1,027,000.

In addition to Sanctuary Advisors, several other institutional investors and hedge funds have adjusted their holdings in Skechers U.S.A. Vanguard Group Inc., for example, increased its stake by 0.8% during the first quarter and now owns 12,724,299 shares, valued at $779,491,000, following the acquisition of an additional 97,666 shares. Dimensional Fund Advisors LP also boosted its position by 3.0% in the second quarter, adding 55,095 shares to its holdings, which now consist of 1,885,723 shares worth $130,350,000.

Another significant player, Vaughan Nelson Investment Management L.P., increased its share count by 62.6% in the first quarter, owning 1,232,993 shares valued at $75,534,000. Goldman Sachs Group Inc. made substantial changes as well, enhancing its stake by 99.2% in the fourth quarter, now holding 824,263 shares valued at $51,385,000 after acquiring an extra 410,379 shares. Finally, Principal Financial Group Inc. saw its position grow by 2.5% in the first quarter, now owning 503,289 shares valued at $30,831,000. Collectively, institutional investors and hedge funds own approximately 79.96% of Skechers U.S.A.

Recent Analyst Ratings

Recently, various equity research analysts have provided updates on Skechers U.S.A. shares. For instance, Wedbush raised their price target from $76.00 to $79.00, while rating the stock as “outperform” on July 26th. Barclays also adjusted their price objective from $78.00 to $79.00 and issued an “overweight” rating. Stifel Nicolaus followed suit by lifting their target from $81.00 to $83.00, rating the company as a “buy.”

However, Bank of America reduced its target from $87.00 to $81.00 while maintaining a “buy” rating. TD Cowen also increased their price objective from $77.00 to $79.00 and suggested a “buy” rating. In total, eleven investment analysts have rated the stock with a “buy” rating, according to MarketBeat.com. The average target price is currently set at $77.82.

Skechers U.S.A. Stock Overview

On the trading day last Friday, shares opened at $67.54, showing that Skechers U.S.A. has experienced a 52-week low of $45.58 and a high of $75.09. The company’s financial metrics include a quick ratio of 1.33, a current ratio of 2.06, and a remarkably low debt-to-equity ratio of 0.01. The market capitalization stands at $10.29 billion, with a price-to-earnings ratio of 18.11 and a PEG ratio of 0.93. Currently, the 50-day moving average for the stock is $65.79, while the 200-day moving average is $65.87.

On July 25th, Skechers U.S.A. released its quarterly earnings data, reporting earnings per share (EPS) of $0.91. This was slightly below analysts' estimates, which were predicted to be $0.95. Revenues for the quarter amounted to $2.16 billion, missing the consensus estimate of $2.24 billion; however, this represents a 7.3% increase compared to the same quarter from the previous year. Analysts forecast that Skechers U.S.A. will achieve an EPS of 4.17 for the current fiscal year.

As part of its financial strategy, the Board of Directors of Skechers U.S.A. approved a stock buyback plan, allowing the company to repurchase up to $1.00 billion in shares. This buyback authorization indicates the leadership’s belief that the company’s shares are undervalued and potentially signals long-term confidence in the firm's prospects.

About Skechers U.S.A. Inc.

Skechers U.S.A., Inc. is a prominent player in the footwear industry, dedicated to designing, developing, marketing, and distributing shoes for men, women, and children around the globe. The company operates through various segments, notably Wholesale and Direct-to-Consumer, and offers a variety of popular footwear lines including Skechers Hands Free Slip-ins, Skechers Arch Fit, and Skechers Air-Cooled Memory Foam.

Conclusion

This new investment by Sanctuary Advisors LLC, alongside the recent adjustments in positions by other institutional investors, reflects a growing interest in Skechers U.S.A. The recent ratings and financial performance reports indicate optimism toward the company in the footwear market.

investment, Skechers, finance