Barnes & Noble, Inc. (BKS) Disappoints on Earnings, Shares Down in Pre-Market

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Barnes & Noble, Inc. (NYSE:BKS) shares are trading down $1.94 or 16.11% in the pre-market this morning after the company reported weak earnings for their fiscal second quarter. The company reported a loss of $0.36 per shares, missing consensus estimates of a loss of $0.31 per share by $0.05. Barnes & Noble, Inc. (NYSE:BKS) also missed analyst estimates on the top line, reporting revenue for the quarter of $894.70 million compared to the $917.83 million that analysts had been expecting. Revenue for the quarter was down 4.5% from the same quarter last year.The stock closed at $12.04 during the last trading session. It is down 46.92% since May 1, 2015 and is downtrending. It has underperformed the S&P500 by 46.72%.

From a total of 4 analysts covering Barnes & Noble Inc. (NYSE:BKS) stock, 3 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 75% of the ratings are positive. The highest target price is $25 while the lowest target price is $19. The mean of all analyst targets is $22.67 which is 88.29% above today’s ($12.04) stock price. Barnes & Noble Inc. was the topic of 4 analyst reports since July 27, 2015 according to the firm StockzIntelligence Inc. Gabelli initiated shares on October 12 with a “Buy” rating. Stifel Nicolaus maintained BKS stock in a recent report from September 4 with a “Hold” rating.

The institutional sentiment increased to 1.16 in Q2 2015. It’s up 0.03, from 1.13 in 2015Q1. The ratio is positive, as 32 funds sold all their Barnes & Noble, Inc. shares they owned while 53 reduced their positions. 34 funds bought stakes while 65 increased their total positions. Institutions now own 47.05 million shares which is 8.96% more than the previous share count of 43.18 million in 2015Q1.

Towerview Llc holds 23% of its total portfolio in Barnes & Noble, Inc., equating to 1.83 million shares. Abrams Capital Management L.P. owns 5.12 million shares representing 9.02% of their total US portfolio. Moreover, Gendell Jeffrey L has 6.47% of their total portfolio invested in the company, equating to 1.47 million shares. The Connecticut-based Silver Point Capital L.P. has a total of 4.31% of their portfolio invested in the stock. Selz Capital Llc, a New York-based fund reported 710,000 shares owned.

Since March 11, 2015, the stock had 2 insider purchases, and 1 sale for a total of $11.99 million in net activity. Cowen Scott S bought 5,000 shares worth $65,381. Riggio Leonard bought 1.00 million shares worth $12.59 million. Carey Jaime sold 25,000 shares worth $670,677. Troia Christopher sold 27,271 shares worth $641,035. The insider Deason David S sold 922 shares worth $21,418.

Barnes & Noble, Inc. is a retailer of content, digital media and educational products. The company has a market cap of $918.99 million. The Company’s divisions include Barnes & Noble Retail and NOOK. It currently has negative earnings. The Firm is a content, commerce and technology company, which provides access to trade books, textbooks, magazines, newspapers and other content across its multi-channel distribution platform.

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