Standpoint Research Lowers Abercrombie & Fitch Company (ANF) to Hold

Tammy Harvey
November 18, 2017

Net sales were 859.1 million dollars, up 5 percent over a year ago, with comparable sales for the third quarter up 4 percent and changes in foreign currency exchange rates benefiting net sales by 1 percent. Abercrombie & Fitch had a negative net margin of 0.62% and a negative return on equity of 0.79%. The firm earned "Hold" rating on Tuesday, June 6 by Jefferies.

Abercrombie, which abandoned talks on a sale of its business in July after failing to find a buyer who would meet the board's valuation, said overall same-store sales rose 4 percent, beating analysts' average estimate of a 0.3 percent rise.

Abercrombie & Fitch Company (NYSE:ANF)'s stock had its "buy" rating restated by investment analysts at Mizuho in a note issued to investors on Thursday. If you are reading this piece on another publication, it was illegally copied and reposted in violation of US & worldwide trademark & copyright law.

A number of hedge funds have recently modified their holdings of ANF.

The average Wall Street analyst rating for Abercrombie & Fitch Strong Sell, according to the average of 14 analyst scores. The fund acquired 1,041,574 shares of the apparel retailer's stock, valued at approximately $15,040,000. Citigroup Inc. raised Abercrombie & Fitch from a "neutral" rating to a "buy" rating and raised their price objective for the company from $14.00 to $16.00 in a report on Friday, August 25th.

Abercrombie & Fitch Co. shares rose $2.97 (+23.67%) in premarket trading Friday following the report. Standpoint Research cut Abercrombie & Fitch from an "outperform" rating to a "hold" rating in a report on Friday. Ten investment analysts have rated the stock with a sell rating, fourteen have given a hold rating and six have given a buy rating to the stock.

They expect $0.24 EPS, up 91.67% or $0.22 from last year's $0.02 per share. Analyzing the last five market sessions, the stock was able to report 3.04% gains, thus going up by 3.64%, compared with its 200-day moving average of $12.27. The company has the market capitalization of $161.82B while its P/B ratio was 3.80. Abercrombie & Fitch has a one year low of $8.81 and a one year high of $16.99. Total debt to equity ratio of the company for most recent quarter is 0 whereas long term debt to equity ratio for most recent quarter is 0.23.

As of quarter end Investec Asset Management Ltd had disposed of 6,628 shares trimming its position 1.9%. Qs Ltd Llc holds 0.04% or 373,657 shares. Suntrust Banks Inc. boosted its holdings in Abercrombie & Fitch by 3.9% during the 2nd quarter. On Wednesday, August 31 the stock rating was maintained by RBC Capital Markets with "Sector Perform".

Ahead of earnings, Abercrombie options traders were showing optimism. As of quarter end Geode Capital Management, LLC had bought a total of 9,135 shares growing its position 1.7%. Institutional investors own 98.51% of the company's stock.

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 11th. The stock realized a fall in short interest from October 13, 2017 to October 31, 2017 of -1.05%. The ex-dividend date of this dividend is Thursday, November 30th. Abercrombie & Fitch's dividend payout ratio (DPR) is -250.00%. The Firm offers an array of apparel products, including knit tops, woven shirts, graphic t-shirts, fleece, sweaters, jeans, woven trousers, shorts, outerwear, dresses, intimates and swimwear, and personal care products and accessories for men, women and kids under the Abercrombie & Fitch, abercrombie kids, Hollister and Gilly Hicks brands.

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