Finish Line Inc (FINL) To Replace CEO, and Close 25% Of Their Stores, As Earnings Disappoint


Shares of Finish Line Inc (NASDAQ:FINL) are trading down $3.10 or 16.76% in the pre-market this morning after a trove of bad news was announced this morning. The company today missed earnings by reporting a $0.07 loss per share, more than double the loss that many analysts had been expecting for the third quarter. Revenue for the quarter also declined 3.5% to $382.1 million, also well shy of the $408 million that analysts were predicting.

In addition to a poor report, the company also said that they will be closing as many as 150 store locations, representing approximately 25% of Finish Line’s (NASDAQ:FINL) currently opened stores. These closures will take place over the next four years. Finally, the company said that they will be replacing their CEO, Glenn Lyon, with their current President Sam Sato.

The stock closed at $18.5 during the last trading session. It is down 29.95% since June 3, 2015 and is downtrending. It has underperformed the S&P500 by 25.26%.

From a total of 15 analysts covering Finish Line (NASDAQ:FINL) stock, 7 rate it a “Buy”, 0 a “Sell”, and 8 a “Hold”. This means that 47% of the ratings are positive. The highest target price is $33 while the lowest target price is $20. The mean of all analyst targets is $25.58 which is 38.27% above today’s ($18.5) stock price. Finish Line was the topic of 20 analyst reports since August 3, 2015 according to the firm StockzIntelligence Inc. Deutsche Bank maintained shares on January 5 with a “Buy” rating. Goldman Sachs upgraded shares to a”Neutral” rating and a $20 target share price in their report from an October 2. Bank of America upgraded FINL stock in a recent report from December 22 to a “Buy” rating. Piper Jaffray maintained the rating on September 28. Piper Jaffray has a “Overweight” rating and a $25 price target on shares. Finally, Piper Jaffray downgraded the stock to a “Neutral” rating in a report they issued on a December 9.

The institutional sentiment increased to 1 in Q2 2015. It’s up 0.16, from 0.84 in 2015Q2. The ratio improved, as 42 funds sold all their Finish Line Inc shares they owned while 65 reduced their positions. 35 funds bought stakes while 72 increased their total positions. Institutions now own 55.97 million shares which is 21.02% more than the previous share count of 46.25 million in 2015Q2.

Bodri Capital Management Llc holds 2.4% of its total portfolio in Finish Line Inc, equating to 125,000 shares. J. Goldman & Co Lp owns 1.19 million shares representing 2.05% of their total US portfolio. Moreover, Euclidean Technologies Management Llc has 1.97% of their total portfolio invested in the company, equating to 97,699 shares. The Illinois-based Tyvor Capital Llc has a total of 1.69% of their portfolio invested in the stock. Netols Asset Management Inc., a Wisconsin-based fund reported 308,050 shares owned.

Since April 6, 2015, the stock had 0 insider buys, and 2 insider sales for a total of $325,095 in net activity. Samuel Sato M sold 5,565 shares worth $105,095. Goldsmith Stephen sold 8,000 shares worth $220,000. Lyon Glenn S sold 15,000 shares worth $427,500.

Finish Line, Inc. is a specialty retailer. The company has a market cap of $829.65 million. The Firm operates two retail divisions, one under the Finish Line brand name and another under the Running Specialty Group . It has 10.37 P/E ratio. Finish Line is a retailer of athletic shoes, apparel, and accessories.