Zacks Investment Research upgraded shares of Michaels Companies (NASDAQ:MIK) from a hold rating to a buy rating in a report released on Wednesday morning, Zacks.com reports. The firm currently has $11.00 price objective on the specialty retailer’s stock.
According to Zacks, “Although Michaels have underperformed the industry in the past three months, it is likely to gain momentum on the back of its strategic efforts. The company’s focus on integrating e-commerce and in-store operations to boost omni-channel experience is likely to aid growth. Also, the company is benefiting from its enhanced ability to search, expanded assortments and in-store product availability, leading to higher traffic and conversion rates. Backed by efficient expense management and share repurchase program, earnings grew year over year in fourth-quarter fiscal 2018. Moreover, the company has a robust surprise trend, reporting earnings beat in four consecutive quarters. However, soft margins trend continued in the fourth quarter, due to higher costs. While gross margin declined in the last four quarters, operating margin contracted for five straight quarters. Further, management issued soft earnings view for first-quarter and fiscal 2019.”
MIK has been the subject of several other reports. BidaskClub downgraded Michaels Companies from a buy rating to a hold rating in a report on Tuesday, February 5th. Morgan Stanley downgraded Michaels Companies from an overweight rating to an equal weight rating and lowered their price target for the company from $17.00 to $10.00 in a report on Monday, May 20th. JPMorgan Chase & Co. downgraded Michaels Companies from an overweight rating to a neutral rating and lowered their price target for the company from $18.00 to $15.00 in a report on Friday, March 1st. Credit Suisse Group reiterated a positive rating and issued a $20.00 price target (down from $26.00) on shares of Michaels Companies in a report on Thursday, January 31st. Finally, Loop Capital upgraded Michaels Companies from a hold rating to a buy rating and increased their price target for the company from $14.00 to $17.00 in a report on Wednesday, February 6th. Three analysts have rated the stock with a sell rating, seven have assigned a hold rating and three have assigned a buy rating to the stock. The company presently has a consensus rating of Hold and a consensus price target of $15.00.
Michaels Companies (NASDAQ:MIK) last released its quarterly earnings data on Tuesday, March 19th. The specialty retailer reported $1.44 EPS for the quarter, topping analysts’ consensus estimates of $1.42 by $0.02. The business had revenue of $1.79 billion during the quarter, compared to the consensus estimate of $1.78 billion. Michaels Companies had a negative return on equity of 24.50% and a net margin of 6.06%. The business’s revenue for the quarter was down 5.4% on a year-over-year basis. During the same period in the prior year, the firm posted $1.19 EPS. Research analysts predict that Michaels Companies will post 2.47 earnings per share for the current year.
Several institutional investors have recently made changes to their positions in the company. Cerebellum GP LLC acquired a new stake in shares of Michaels Companies during the first quarter valued at about $154,000. Nordea Investment Management AB grew its stake in shares of Michaels Companies by 5.9% during the first quarter. Nordea Investment Management AB now owns 693,515 shares of the specialty retailer’s stock valued at $7,919,000 after acquiring an additional 38,578 shares in the last quarter. Weiss Asset Management LP acquired a new stake in shares of Michaels Companies during the first quarter valued at about $136,000. Lombard Odier Asset Management USA Corp acquired a new stake in shares of Michaels Companies during the first quarter valued at about $190,000. Finally, FMR LLC grew its stake in shares of Michaels Companies by 29.9% during the first quarter. FMR LLC now owns 2,699,700 shares of the specialty retailer’s stock valued at $30,831,000 after acquiring an additional 620,679 shares in the last quarter.
Michaels Companies Company Profile
The Michaels Companies, Inc owns and operates arts and crafts specialty retail stores for Makers and do-it-yourself home decorators in North America. It operates Michaels stores that offer approximately 45,000 stock-keeping units (SKUs) in crafts, home decor and seasonal, framing, and paper crafting; and Aaron Brothers stores, which offer approximately 5,600 SKUs, including photo frames, a line of ready-made frames, art prints, framed art, art supplies, and custom framing services.
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