Adidas (OTCMKTS:ADDYY) Shares Gap Up After Analyst Upgrade

Key Points

• Adidas shares saw a significant increase after Jefferies Financial Group upgraded the stock from a hold rating to a buy rating, opening at $99.51 after a previous close at $96.09.
• Multiple analysts have rated Adidas with strong recommendations, including DZ Bank, which upgraded the stock to a "strong-buy" rating, contributing to a consensus rating of "Buy" among analysts.
• Adidas reported better-than-expected earnings, with $1.15 earnings per share, surpassing analysts' estimates of $1.13, and revenues of $6.86 billion, exceeding predictions of $6.30 billion.

Adidas AG (OTCMKTS:ADDYY - Get Free Report) shares gapped up prior to trading on Wednesday after Jefferies Financial Group upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $96.09, but opened at $99.51. Adidas shares last traded at $99.49, with a volume of 44,608 shares trading hands.

Separately, DZ Bank upgraded shares of Adidas from a "hold" rating to a "strong-buy" rating in a research report on Friday, May 23rd. Three investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy".

Institutional Investors Weigh In On Adidas

A number of institutional investors and hedge funds have recently modified their holdings of the company. GAMMA Investing LLC boosted its holdings in Adidas by 17.8% in the first quarter. GAMMA Investing LLC now owns 1,057 shares of the company's stock valued at $125,000 after acquiring an additional 160 shares in the last quarter. Yousif Capital Management LLC raised its position 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 worth $607,000 after purchasing an additional 450 shares during the last quarter. Rhumbline Advisers raised its position in Adidas by 7.9% in the 1st quarter. Rhumbline Advisers now owns 9,655 shares of the company's stock worth $1,139,000 after buying an additional 709 shares during the last quarter. Finally, Mar Vista Investment Partners LLC raised its position in Adidas by 4.0% in the 2nd quarter. Mar Vista Investment Partners LLC now owns 30,337 shares of the company's stock worth $3,550,000 after buying an additional 1,180 shares during the last quarter.

Adidas Trading Up 3.9%

The stock has a 50-day simple moving average of $108.47 and a two-hundred day simple moving average of $116.01. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.72 and a current ratio of 1.29. The firm has a market cap of $35.66 billion, a PE ratio of 27.21, a price-to-earnings-growth ratio of 0.53 and a beta of 1.16.

Adidas (OTCMKTS:ADDYY - Get Free Report) last issued its earnings results on Wednesday, July 30th. The company reported $1.15 earnings per share for the quarter, topping analysts' consensus estimates of $1.13 by $0.02. The business had revenue of $6.86 billion during the quarter, compared to analyst estimates of $6.30 billion. Adidas had a return on equity of 20.68% and a net margin of 4.93%. As a group, sell-side analysts anticipate that Adidas AG will post 2.27 EPS for the current year.

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.

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