After shares fell close to 50% in 2015, Michael Kors Holdings Ltd (NYSE:KORS) shareholders have been hoping that 2016 would be a better year for the apparel company, and this morning seems to have been a good time for this hope to turn to reality.
Shares of Michael Kors Holdings Ltd (NYSE:KORS) are trading up $6.23 or 15.41% in the pre-market this morning after the company announced better than expect third quarter earnings. Reporting an EPS for the quarter of $1.59, the company beat expectations of $1.46 per share while also beating out last year’s $1.48 per share figure. On the revenue front, the company reported approximately $1.397 billion , which also beat analyst expectation of $1.35 billion by a decent margin.
It will be interesting to see if shares continue this surge in the pre-market or if some shareholders see this as a profit-taking opportunity, and push the stock back from early morning highs. The stock closed at $40.44 during the last trading session. It is down 9.95% since June 26, 2015 and is downtrending. It has underperformed the S&P500 by 1.08%.
From a total of 12 analysts covering Michael Kors Holdings Ltd (NYSE:KORS) stock, 2 rate it a “Buy”, 2 a “Sell”, and 8 a “Hold”. This means that 17% of the ratings are positive. The highest target price is $53 while the lowest target price is $37. The mean of all analyst targets is $44.33 which is 9.62% above today’s ($40.44) stock price. Michael Kors Holdings Ltd was the topic of 25 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Canaccord Genuity maintained shares on November 5 with a “Hold” rating. Buckingham Research downgraded shares to a”Neutral” rating and a $42 target share price in their report from a July 24. Bank of America reinitiated KORS stock in a recent report from October 22 with a “Neutral” rating. Finally, Citigroup initiated the stock with a “Sell” rating in a report they issued on an October 7.
The institutional sentiment decreased to 0.6 in Q2 2015. It’s down 0.32, from 0.92 in 2015Q2. The ratio worsened, as 90 funds sold all their Michael Kors Holdings Ltd shares they owned while 183 reduced their positions. 51 funds bought stakes while 114 increased their total positions. Institutions now own 132.12 million shares which is 14.18% less than the previous share count of 153.95 million in 2015Q2.
Arga Investment Management Lp holds 12.54% of its total portfolio in Michael Kors Holdings Ltd, equating to 1.04 million shares. Metropolitan Capital Advisors Inc owns 192,475 shares representing 7.48% of their total US portfolio. Moreover, Flossbach Von Storch Ag has 5.99% of their total portfolio invested in the company, equating to 8.15 million shares. The California-based Apex Capital Llc has a total of 5.05% of their portfolio invested in the stock. Greenlight Capital Inc, a New York-based fund reported 7.04 million shares owned.
Michael Kors Holdings Limited is a global accessories, footwear and apparel company. The company has a market cap of $7.46 billion. The Firm operates its business in three divisions: retail, wholesale and licensing. It has 9.5 P/E ratio. It offers two primary collections: the Michael Kors luxury collection and the MICHAEL Michael Kors accessible luxury collection.