Just How Negative is Credit Suisse Following Their Downgrade of Zoe’s Kitchen (NYSE:ZOES)?

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Zoe’s Kitchen (NYSE:ZOES) Receives a Downgrade

In analysts note sent to investors on Tuesday morning, expert analysts at Credit Suisse’s equities research division cut the rating for Zoe’s Kitchen (NYSE:ZOES) shares from the previous “Neutral” to a “Underperform”.

From a total of 9 analysts covering Zoe’s Kitchen (NYSE:ZOES) stock, 4 rate it a ”Buy”, 0 a “Sell”, and 6 a ”Hold”. This means that 40% of the ratings are positive. The highest target price is $52 while the lowest target price is $32. The mean of all analyst targets is $38 with a 21.63% above today’s ($30.42) stock price. Zoe’s Kitchen was the topic of 11 analyst reports since August 6, 2015 according to the firm StockzIntelligence Inc. Maxim Group maintained shares on December 10 with “Buy” rating. Deutsche Bank maintained ZOES stock in a recent report from August 30 with “Hold” rating.

Approximately 455,276 shares of stock traded hands or 28.27% up from the average. Zoe’s Kitchen Inc (NYSE:ZOES) has declined 2.69% since May 12, 2015 and is downtrending. It has outperformed by 0.99% the S&P500.

The overall sentiment of institutions has decreased to 1.19 in Q2 2015. Its down 0.36, from 1.55 in 2015Q2. The ratio fall, as 23 institutions have sold all the shares of Zoe’s Kitchen Inc that they owned while 39 funds have taken shares off the table. 22 funds have purchased shares for the first time while 52 added to their positions. These institutions now hold 24.29 million shares or 9.72% more than the 22.13 million shares they owned in 2015Q2.

The Fund Concourse Capital Management Llc currently is holding shares equating to 5.52% of its total portfolio in Zoe’s Kitchen Inc representing a total of 277,060 shares. Another fund,Miura Global Management Llc, is holding a total of 1.71 million shares equating to 3.69% of their holdings. Additionally, Robertson Opportunity Capital Llc has a 52,856 share stake in Zoe’s Kitchen Inc which represents 2.19% of their total portfolio. The Fund, Tamro Capital Partners Llc, based out of Virginia, has also built up a stake in the stock, which represents a total of 2.13% of their total portfolio. Finally Lomas Capital Management Llc, a fund which is based in the state of New York reported a total holdings of 269,551 shares.

Insider activity is a very important aspect to track on any stock. Going back to March 20, 2015, shareholders of Zoe’s Kitchen Inc have witnessed 0 buys, and a total of 1 sale equating to a net activity of approximately $435,710 . Hartley Jeremy sold 12,666 shares worth approximately $435,710. Miles Kevin sold 10,000 shares worth approximately $420,000. Besch James sold 2,000 shares worth approximately $79,000. Morgan Jason sold 2,500 shares worth approximately $80,000.

Zoe’s Kitchen, Inc. primarily develops and operates fast-casual restaurants serving a range of Mediterranean dishes. The company has a market cap of $637.76 million. As of December 29, 2014, the Company had 129 Company-owned restaurants and three franchise restaurants in 15 states across the United States. It currently has negative earnings. The Company’s menu offers meals made generally from scratch using produce, proteins and other ingredients that are preservative- and additive-free, including its appetizers, soups, salads and kabobs.

According to Zacks Investment Research, “Zoe’s Kitchen Inc. operates as a fast casual restaurant concept serving Mediterranean-style food. The company operates a range of restaurant formats, including in-line, end-cap, and free-standing restaurants. It also grants licenses to qualified franchisees to construct and operate Zoe’s Kitchen restaurants. Zoe’s Kitchen, Inc. is based in Plano, Texas.”

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