Zacks Investment Research Downgrades Columbia Sportswear (COLM) to Hold

Zacks Investment Research cut shares of Columbia Sportswear (NASDAQ:COLM) from a strong-buy rating to a hold rating in a research report report published on Thursday, Zacks.com reports.

According to Zacks, “Columbia Sportswear has outpaced the industry in a year driven by its robust past record that was retained in the fourth quarter of 2018. In the quarter, both top and the bottom lines grew year over year and beat the consensus mark for the eighth and 24th consecutive time, respectively. Sales were backed by solid growth in all geographic regions, product categories and most brands. Further, direct-to-consumer and wholesale businesses continued being strong. These factors along with improved margins fueled the bottom line. The company is also gaining from solid international presence. Moreover, management provided encouraging view for 2019. However, the company is battling high SG&A expenses that escalated 17% in the reported quarter. Management expects SG&A costs to increase further, that may weigh on its operating margin. Nonetheless, we expect the company’s Project CONNECT program to provide significant cushion in the near future.”

Other equities research analysts have also recently issued research reports about the company. Wedbush increased their target price on Columbia Sportswear from $111.00 to $113.00 and gave the company an outperform rating in a report on Thursday, April 11th. Citigroup assumed coverage on Columbia Sportswear in a report on Tuesday, April 16th. They set a buy rating on the stock. Pivotal Research reissued a buy rating and set a $117.00 price target (up previously from $112.00) on shares of Columbia Sportswear in a research note on Tuesday, April 23rd. Macquarie raised Columbia Sportswear from a neutral rating to an outperform rating and set a $106.00 price target on the stock in a research note on Friday, January 11th. Finally, BidaskClub lowered Columbia Sportswear from a buy rating to a hold rating in a research note on Friday, January 11th. Six analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. The company presently has a consensus rating of Buy and a consensus price target of $108.53.

Shares of NASDAQ:COLM opened at $101.25 on Thursday. The firm has a market cap of $6.92 billion, a price-to-earnings ratio of 25.25, a P/E/G ratio of 2.56 and a beta of 0.68. Columbia Sportswear has a one year low of $79.96 and a one year high of $109.74.

Columbia Sportswear (NASDAQ:COLM) last announced its earnings results on Thursday, April 25th. The textile maker reported $1.07 EPS for the quarter, beating analysts’ consensus estimates of $0.84 by $0.23. The firm had revenue of $654.61 million for the quarter, compared to analysts’ expectations of $646.77 million. Columbia Sportswear had a return on equity of 18.01% and a net margin of 10.43%. Columbia Sportswear’s quarterly revenue was up 7.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.77 EPS. Equities research analysts forecast that Columbia Sportswear will post 4.5 earnings per share for the current year.

In related news, EVP Joseph P. Boyle sold 566 shares of the stock in a transaction on Tuesday, March 19th. The stock was sold at an average price of $106.00, for a total value of $59,996.00. Following the completion of the sale, the executive vice president now directly owns 2,301,492 shares in the company, valued at approximately $243,958,152. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CAO Peter J. Bragdon sold 10,824 shares of the stock in a transaction on Friday, February 8th. The shares were sold at an average price of $102.80, for a total value of $1,112,707.20. Following the completion of the sale, the chief accounting officer now owns 28,955 shares of the company’s stock, valued at $2,976,574. The disclosure for this sale can be found here. Insiders sold a total of 84,535 shares of company stock worth $8,929,236 over the last ninety days. Corporate insiders own 56.68% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in COLM. Martingale Asset Management L P increased its holdings in Columbia Sportswear by 69.6% in the 3rd quarter. Martingale Asset Management L P now owns 86,223 shares of the textile maker’s stock valued at $8,025,000 after purchasing an additional 35,387 shares in the last quarter. BlackRock Inc. grew its stake in shares of Columbia Sportswear by 9.5% during the third quarter. BlackRock Inc. now owns 1,323,116 shares of the textile maker’s stock valued at $123,142,000 after acquiring an additional 114,543 shares in the last quarter. Deutsche Bank AG grew its stake in shares of Columbia Sportswear by 10.6% during the third quarter. Deutsche Bank AG now owns 139,438 shares of the textile maker’s stock valued at $12,974,000 after acquiring an additional 13,419 shares in the last quarter. Advisors Asset Management Inc. grew its stake in shares of Columbia Sportswear by 72.5% during the third quarter. Advisors Asset Management Inc. now owns 5,238 shares of the textile maker’s stock valued at $488,000 after acquiring an additional 2,201 shares in the last quarter. Finally, AQR Capital Management LLC grew its stake in shares of Columbia Sportswear by 383.5% during the third quarter. AQR Capital Management LLC now owns 200,189 shares of the textile maker’s stock valued at $18,631,000 after acquiring an additional 158,787 shares in the last quarter. Hedge funds and other institutional investors own 38.04% of the company’s stock.

About Columbia Sportswear

Columbia Sportswear Company, together with its subsidiaries, designs, sources, markets, and distributes outdoor and active lifestyle apparel, footwear, accessories, and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East and Africa, and Canada. The company provides apparel, accessories, and equipment that are used various outdoor activities, such as skiing, snowboarding, hiking, climbing, mountaineering, camping, hunting, fishing, trail running, water sports, yoga, golf, and adventure travel for men and women under the Columbia, Mountain Hardwear, SOREL, and prAna brands, as well as for youth under the Columbia brand name.

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