Zacks Investment Research Downgrades Genesco (GCO) to Hold

Zacks Investment Research cut shares of Genesco (NYSE:GCO) from a buy rating to a hold rating in a research note published on Wednesday.

According to Zacks, “Genesco Inc., a Nashville-based specialty retailer, sells footwear, headwear and accessories in retail stores in the United States and Canada. The Company sells its products principally under the names Journeys, Journeys Kidz, Shi by Journeys, Johnston & Murphy, Underground Station, Hatworld, Lids, Hat Shack, Hat Zone, Head Quarters and Cap Connection, and on internet websites. The Company also sells footwear at wholesale under its Johnston & Murphy brand and under the licensed Dockers brand. “

A number of other brokerages have also issued reports on GCO. Macquarie upped their price objective on shares of Genesco from $28.00 to $32.00 and gave the company a hold rating in a report on Monday, September 10th. Pivotal Research set a $55.00 target price on shares of Genesco and gave the stock a buy rating in a research note on Monday, September 10th. ValuEngine raised shares of Genesco from a hold rating to a buy rating in a research note on Tuesday, July 24th. Finally, Jefferies Financial Group lowered shares of Genesco from a buy rating to a hold rating and set a $43.00 target price for the company. in a research note on Tuesday, July 10th. Eight research analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. The stock currently has a consensus rating of Hold and a consensus price target of $39.88.

Shares of GCO traded down $0.73 during mid-day trading on Wednesday, reaching $45.45. The stock had a trading volume of 204,993 shares, compared to its average volume of 282,451. The company has a current ratio of 2.43, a quick ratio of 0.53 and a debt-to-equity ratio of 0.10. Genesco has a 52-week low of $24.25 and a 52-week high of $51.85. The firm has a market capitalization of $914.13 million, a P/E ratio of 14.47, a P/E/G ratio of 1.86 and a beta of 1.07.

Genesco (NYSE:GCO) last announced its quarterly earnings data on Friday, September 7th. The company reported $0.04 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.04) by $0.08. Genesco had a negative net margin of 3.77% and a positive return on equity of 7.53%. The firm had revenue of $653.90 million during the quarter, compared to analyst estimates of $641.07 million. During the same quarter in the prior year, the firm posted ($0.10) earnings per share. Genesco’s quarterly revenue was up 6.1% on a year-over-year basis. Equities research analysts predict that Genesco will post 3.24 earnings per share for the current fiscal year.

In other news, Director Kathleen Mason sold 2,000 shares of the stock in a transaction dated Thursday, August 30th. The shares were sold at an average price of $48.91, for a total transaction of $97,820.00. Following the sale, the director now owns 43,626 shares of the company’s stock, valued at $2,133,747.66. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 4.30% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of GCO. JPMorgan Chase & Co. raised its holdings in Genesco by 232.9% in the first quarter. JPMorgan Chase & Co. now owns 16,411 shares of the company’s stock valued at $666,000 after acquiring an additional 11,481 shares in the last quarter. Jane Street Group LLC acquired a new stake in Genesco in the first quarter valued at approximately $239,000. Legal & General Group Plc raised its holdings in Genesco by 25.3% in the first quarter. Legal & General Group Plc now owns 66,611 shares of the company’s stock valued at $2,694,000 after acquiring an additional 13,443 shares in the last quarter. Principal Financial Group Inc. raised its holdings in Genesco by 2.4% in the first quarter. Principal Financial Group Inc. now owns 152,631 shares of the company’s stock valued at $6,197,000 after acquiring an additional 3,578 shares in the last quarter. Finally, Allianz Asset Management GmbH acquired a new stake in Genesco in the first quarter valued at approximately $241,000.

Genesco Company Profile

Genesco Inc retails and wholesales footwear, apparel, and accessories. The company operates in five segments: Journeys Group, Schuh Group, Lids Sports Group, Johnston & Murphy Group, and Licensed Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, Shi by Journeys, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children.

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