Iconix Brand Group Inc (ICON) Under Investigation by The SEC

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Iconix Brand Group Inc (NASDAQ:ICON) today announced that they have received a formal order of investication by the U.S. Securities and Exchange Commission, and that they intend to cooperate with the investigation completely. The investigation, which is related to the accounting treatment for the formation of certain joint ventures, was known to be underway by shareholders for some time, however, this letter has just formalized such an investigation.

Shares of Iconix Brand Group Inc (NASDAQ:ICON) are trading down $0.80 or 10.74% in the pre-market this morning following this news. Shares are down over 80% from their 52-week highs. The stock closed at $7.45 during the last trading session. It is down 71.94% since May 22, 2015 and is downtrending. It has underperformed the S&P500 by 68.88%.

From a total of 5 analysts covering Iconix Brand Group (NASDAQ:ICON) stock, 2 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 40% of the ratings are positive. The highest target price is $25 while the lowest target price is $7. The mean of all analyst targets is $13.40 which is 79.87% above today’s ($7.45) stock price. Iconix Brand Group was the topic of 9 analyst reports since August 7, 2015 according to the firm StockzIntelligence Inc. Roth Capital maintained shares on November 11 with a “Buy” rating. Monness Crespi & Hardt upgraded shares to a”Buy” rating and a $18 target share price in their report from an August 12. Monness Crespi & Hardt downgraded ICON stock in a recent report from November 6 to a “Neutral” rating. Finally, Brean Capital downgraded the stock to a “Hold” rating in a report they issued on a November 6.

The institutional sentiment decreased to 0.57 in Q2 2015. It’s down 0.22, from 0.79 in 2015Q2. The ratio is negative, as 68 funds sold all their Iconix Brand Group Inc shares they owned while 68 reduced their positions. 28 funds bought stakes while 49 increased their total positions. Institutions now own 62.85 million shares which is 7.68% more than the previous share count of 58.37 million in 2015Q2.

Aristotle Fund L.P. holds 29.15% of its total portfolio in Iconix Brand Group Inc, equating to 1.70 million shares. Huber Capital Management Llc owns 5.57 million shares representing 2.63% of their total US portfolio. Moreover, Irving Magee Investment Management has 1.89% of their total portfolio invested in the company, equating to 268,833 shares. The Quebec – Canada-based Van Berkom & Associates Inc. has a total of 1.57% of their portfolio invested in the stock. Prentice Capital Management Lp, a Connecticut-based fund reported 28,074 shares owned.

Iconix Brand Group, Inc. is a brand management firm and owner of a diversified portfolio of 35 global consumer brands across women’s, men’s, entertainment and home. The company has a market cap of $360.53 million. The Company’s brand portfolio includes Candie’s, Bongo, Badgley Mischka, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific , Danskin, Rocawear, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Zoo York, Sharper Image, Umbro, Lee Cooper, Ecko Unltd., Marc Ecko and Strawberry Shortcake. It has 3.93 P/E ratio. The Firm also has interest in Artful Dodger, Material Girl, Peanuts, Ed Hardy, Truth or Dare, Billionaire Boys Club, Ice Cream, Modern Amusement, Buffalo, Nick Graham, Pony and Hydraulic brands.

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