Adidas (OTCMKTS:ADDYY) Sets New 52-Week Low - Here's Why

Key Points

• Adidas shares reached a new 52-week low at $94.83, with a significant decline observed in trading volume.
• Despite the drop in stock price, analysts show a consensus rating of "Buy", with a mix of upgrades leading to three "strong-buy" ratings.
• The company declared a substantial dividend increase, raising it to $0.7565 per share, which reflects a yield of 62.0% and is a significant boost from the previous dividend of $0.24.

Adidas AG (OTCMKTS:ADDYY - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $94.83 and last traded at $94.90, with a volume of 2198 shares trading hands. The stock had previously closed at $96.27.

Analysts Set New Price Targets

Several brokerages have commented on ADDYY. Baird R W upgraded shares of Adidas from a "hold" rating to a "strong-buy" rating in a report on Monday, April 21st. Piper Sandler began coverage on shares of Adidas in a research note on Monday, May 5th. They set an "overweight" rating for the company. Berenberg Bank upgraded Adidas to a "hold" rating in a report on Tuesday, April 15th. Bank of America raised shares of Adidas from a "neutral" rating to a "buy" rating in a research report on Thursday, April 24th. Finally, DZ Bank raised Adidas from a "hold" rating to a "strong-buy" rating in a research report on Friday, May 23rd. Three equities research analysts have rated the stock with a hold rating, three have issued a buy rating and three have assigned a strong buy rating to the company's stock. According to MarketBeat, Adidas currently has a consensus rating of "Buy".

Adidas Trading Up 0.9%

The firm has a market capitalization of $34.89 billion, a price-to-earnings ratio of 26.62, a price-to-earnings-growth ratio of 0.52 and a beta of 1.18. The company has a fifty day moving average price of $115.82 and a 200-day moving average price of $120.54. The company has a current ratio of 1.29, a quick ratio of 0.72 and a debt-to-equity ratio of 0.31.

Adidas (OTCMKTS:ADDYY - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported $1.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.13 by $0.02. Adidas had a return on equity of 20.68% and a net margin of 4.93%. The business had revenue of $6.86 billion for the quarter, compared to analysts' expectations of $6.30 billion. On average, equities research analysts predict that Adidas AG will post 2.27 EPS for the current year.

Adidas Increases Dividend

The firm also recently announced a dividend, which was paid on Tuesday, May 27th. Shareholders of record on Tuesday, May 20th were paid a $0.7565 dividend. The ex-dividend date of this dividend was Monday, May 19th. This is a positive change from Adidas's previous dividend of $0.24. This represents a yield of 62.0%. Adidas's payout ratio is presently 20.71%.

Institutional Trading of Adidas

A number of institutional investors have recently modified their holdings of the company. Yousif Capital Management LLC lifted its holdings in Adidas by 9.4% during the 2nd quarter. Yousif Capital Management LLC now owns 5,221 shares of the company's stock worth $607,000 after purchasing an additional 450 shares during the last quarter. GAMMA Investing LLC grew its holdings in shares of Adidas by 30.1% during the 2nd quarter. GAMMA Investing LLC now owns 1,375 shares of the company's stock valued at $161,000 after purchasing an additional 318 shares during the last quarter. Rhumbline Advisers grew its position in Adidas by 7.9% during the 1st quarter. Rhumbline Advisers now owns 9,655 shares of the company's stock worth $1,139,000 after acquiring an additional 709 shares during the last quarter. Finally, Mar Vista Investment Partners LLC lifted its holdings in shares of Adidas by 2.6% during the fourth quarter. Mar Vista Investment Partners LLC now owns 29,199 shares of the company's stock worth $3,556,000 after purchasing an additional 731 shares during the period.

About Adidas

adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products in Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific, and Latin America. It offers footwear, apparel, and accessories and gear, such as bags and balls under the adidas brand; golf footwear and apparel under the adidas Golf brand; and outdoor footwear under the Five Ten brand.