Zacks Investment Research lowered shares of Ralph Lauren (NYSE:RL) from a hold rating to a sell rating in a research note released on Monday, January 8th.
According to Zacks, “Ralph Lauren underperformed the industry in the past month. The company’s North America business continues to suffer due to distribution and brand exits; planned reduction in shipments and promotions to enhance the quality of sales; and lower customer demand. Second-quarter fiscal 2018 marked the company’s 11th consecutive earnings beat and sales topped estimates after two consecutive misses. However, revenues at the North America segment slumped 16% in the second quarter owing to lower retail and wholesale sales. Estimates have been going down ahead of the third-quarter earnings. Additionally, high dependence on outside suppliers poses threats. Nonetheless, the company adjusted its fiscal 2018 guidance to account for the recent positive movements in foreign currency rates, which will aid revenue and operating margins in fiscal 2018. The company remains on track to deliver its goals under its Way Forward Plan, which bodes well.”
RL has been the topic of several other research reports. Cowen reiterated a hold rating and set a $89.00 price target on shares of Ralph Lauren in a research note on Sunday, September 17th. ValuEngine raised Ralph Lauren from a hold rating to a buy rating in a report on Friday, December 1st. Bank of America cut Ralph Lauren from a neutral rating to an underperform rating and decreased their price objective for the company from $100.14 to $80.00 in a report on Wednesday, December 13th. Royal Bank of Canada reissued a hold rating and issued a $88.00 price objective on shares of Ralph Lauren in a report on Thursday, October 5th. Finally, Buckingham Research boosted their price objective on Ralph Lauren from $82.00 to $90.00 and gave the company a neutral rating in a report on Wednesday, September 13th. Six research analysts have rated the stock with a sell rating, ten have assigned a hold rating, seven have issued a buy rating and one has given a strong buy rating to the stock. Ralph Lauren currently has an average rating of Hold and a consensus target price of $88.66.
Ralph Lauren (NYSE:RL) last issued its earnings results on Thursday, November 2nd. The textile maker reported $1.99 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.90 by $0.09. Ralph Lauren had a return on equity of 14.06% and a net margin of 1.29%. The business had revenue of $1.66 billion during the quarter, compared to analyst estimates of $1.64 billion. During the same period in the previous year, the company posted $1.90 EPS. Ralph Lauren’s revenue was down 8.6% on a year-over-year basis. equities research analysts anticipate that Ralph Lauren will post 5.56 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Friday, January 12th. Shareholders of record on Friday, December 29th were paid a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 1.92%. The ex-dividend date of this dividend was Thursday, December 28th. Ralph Lauren’s dividend payout ratio (DPR) is 208.33%.
In other Ralph Lauren news, insider Valerie Hermann sold 2,400 shares of the company’s stock in a transaction on Friday, November 3rd. The stock was sold at an average price of $91.22, for a total transaction of $218,928.00. Following the transaction, the insider now directly owns 35,028 shares in the company, valued at $3,195,254.16. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 32.93% of the stock is owned by corporate insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in RL. Northwestern Mutual Wealth Management Co. raised its stake in Ralph Lauren by 7.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,368 shares of the textile maker’s stock valued at $101,000 after buying an additional 96 shares in the last quarter. Pacer Advisors Inc. grew its holdings in shares of Ralph Lauren by 12.0% during the second quarter. Pacer Advisors Inc. now owns 2,226 shares of the textile maker’s stock worth $164,000 after purchasing an additional 238 shares during the last quarter. Meiji Yasuda Asset Management Co Ltd. purchased a new position in shares of Ralph Lauren during the third quarter worth about $205,000. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp purchased a new position in shares of Ralph Lauren during the third quarter worth about $209,000. Finally, Parametrica Management Ltd purchased a new position in shares of Ralph Lauren during the third quarter worth about $263,000. Institutional investors and hedge funds own 66.89% of the company’s stock.
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Ralph Lauren Company Profile
Ralph Lauren Corporation is engaged in the design, marketing and distribution of lifestyle products, including apparel, accessories, home furnishings and other licensed product categories. The Company operates through three segments: Wholesale, Retail and Licensing. Wholesale business consists of sales made to department stores and specialty stores around the world.
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