Adidas (OTCMKTS:ADDYY) Sees Strong Trading Volume - Still a Buy?

Key Points

• Adidas shares saw unusually strong trading volume on Tuesday, with about 283,929 shares changing hands, more than triple the prior session’s volume. Despite the spike, the stock closed lower at $102.48, down from $104.04.
• Analyst sentiment remains constructive, with recent upgrades and initiations from RBC, JPMorgan, and Deutsche Bank helping to support a consensus rating of “Moderate Buy.” MarketBeat data shows an average target price of $146.02.
• The company recently beat quarterly expectations, reporting EPS of $1.58 versus the $1.53 estimate and revenue of $7.71 billion versus the $7.36 billion forecast. Adidas also reported solid profitability, including a 22.97% return on equity and 5.52% net margin.

Shares of Adidas AG (OTCMKTS:ADDYY - Get Free Report) saw unusually-strong trading volume on Tuesday . Approximately 283,929 shares were traded during trading, an increase of 204% from the previous session's volume of 93,495 shares.The stock last traded at $102.48 and had previously closed at $104.04.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on ADDYY. Royal Bank Of Canada upgraded Adidas from a "sector perform" rating to an "outperform" rating in a research note on Wednesday, June 10th. JPMorgan Chase & Co. initiated coverage on shares of Adidas in a research note on Thursday, July 2nd. They issued an "overweight" rating for the company. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of Adidas in a report on Tuesday, June 30th. Finally, Zacks Research raised shares of Adidas from a "strong sell" rating to a "hold" rating in a research report on Monday, May 4th. Seven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Adidas has an average rating of "Moderate Buy" and an average target price of $146.02.

Adidas Trading Down 1.4%

The company has a debt-to-equity ratio of 0.31, a current ratio of 1.35 and a quick ratio of 0.71. The business has a 50-day simple moving average of $96.01 and a two-hundred day simple moving average of $90.37. The stock has a market cap of $36.64 billion, a price-to-earnings ratio of 22.59, a P/E/G ratio of 1.37 and a beta of 1.24.

Adidas (OTCMKTS:ADDYY - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The company reported $1.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.53 by $0.05. The company had revenue of $7.71 billion during the quarter, compared to analysts' expectations of $7.36 billion. Adidas had a return on equity of 22.97% and a net margin of 5.52%. Equities analysts forecast that Adidas AG will post 5.48 EPS for the current fiscal year.

Hedge Funds Weigh In On Adidas

A hedge fund recently raised its stake in Adidas stock. GAMMA Investing LLC lifted its stake in shares of Adidas AG (OTCMKTS:ADDYY - Free Report) by 53.5% in the second quarter, according to the company in its most recent filing with the SEC. The fund owned 2,101 shares of the company's stock after buying an additional 732 shares during the quarter. GAMMA Investing LLC's holdings in Adidas were worth $216,000 as of its most recent SEC filing.

About Adidas

Adidas AG is a global designer, manufacturer and marketer of athletic footwear, apparel and accessories, headquartered in Herzogenaurach, Germany. Founded by Adolf "Adi" Dassler in 1949, the company has grown into one of the world's leading sportswear brands, offering products for running, soccer, basketball and a wide range of other sports as well as lifestyle and fashion markets.

Adidas's product portfolio includes performance footwear, sports apparel, team uniforms, equipment and accessories sold under the Adidas brand and through various collaborations.

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