Adidas (OTCMKTS:ADDYY) Shares Gap Down - Here's What Happened

Key Points

• Adidas shares gapped down significantly, opening at $103.23 from a previous close of $113.68 and last trading at $102.65.
• Analysts have recently shown renewed confidence in Adidas, with ratings varying from "hold" to "strong-buy," resulting in a consensus rating of "Buy".
• The company declared a recent dividend increase to $0.7565 per share from a previous $0.24, representing a dividend yield of 0.62%.

Adidas AG (OTCMKTS:ADDYY - Get Free Report)'s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $113.68, but opened at $103.23. Adidas shares last traded at $102.65, with a volume of 28,204 shares trading hands.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the stock. Berenberg Bank upgraded shares of Adidas to a "hold" rating in a report on Tuesday, April 15th. Bank of America upgraded shares of Adidas from a "neutral" rating to a "buy" rating in a research note on Thursday, April 24th. DZ Bank raised shares of Adidas from a "hold" rating to a "strong-buy" rating in a research note on Friday, May 23rd. Piper Sandler began coverage on shares of Adidas in a report on Monday, May 5th. They set an "overweight" rating on the stock. Finally, Hsbc Global Res raised shares of Adidas from a "hold" rating to a "strong-buy" rating in a report on Wednesday, April 9th. Three research analysts have rated the stock with a hold rating, three have assigned a buy rating and three have given a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Buy".

Adidas Stock Up 1.3%

The company has a quick ratio of 0.72, a current ratio of 1.29 and a debt-to-equity ratio of 0.31. The company has a market cap of $34.48 billion, a price-to-earnings ratio of 26.31, a PEG ratio of 0.48 and a beta of 1.19. The business has a 50-day simple moving average of $118.50 and a two-hundred day simple moving average of $121.49.

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

Adidas Increases Dividend

The firm also recently disclosed a dividend, which was paid on Tuesday, May 27th. Investors of record on Tuesday, May 20th were issued a $0.7565 dividend. This is a boost from Adidas's previous dividend of $0.24. The ex-dividend date of this dividend was Monday, May 19th. This represents a yield of 62.0%. Adidas's payout ratio is 20.44%.

Hedge Funds Weigh In On Adidas

A number of large investors have recently added to or reduced their stakes in ADDYY. GAMMA Investing LLC raised its position in Adidas by 17.8% in the first quarter. GAMMA Investing LLC now owns 1,057 shares of the company's stock worth $125,000 after acquiring an additional 160 shares during the period. Yousif Capital Management LLC boosted its holdings in shares of Adidas by 9.4% in the 2nd quarter. Yousif Capital Management LLC now owns 5,221 shares of the company's stock valued at $607,000 after acquiring an additional 450 shares during the last quarter. Rhumbline Advisers lifted its stake in shares of Adidas by 7.9% in the 1st quarter. Rhumbline Advisers now owns 9,655 shares of the company's stock valued at $1,139,000 after purchasing an additional 709 shares during the period. Finally, Mar Vista Investment Partners LLC raised its position in shares of Adidas by 2.6% in the fourth quarter. Mar Vista Investment Partners LLC now owns 29,199 shares of the company's stock valued at $3,556,000 after buying an additional 731 shares during the last quarter.

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.