Adidas (OTCMKTS:ADDYY) Shares Gap Up After Strong Earnings

Key Points

• Adidas shares gapped up after reporting quarterly EPS of $1.58 versus analysts' $1.55 estimate, opening at $88 from a $81 close and rising about 7.9%.
• Analyst coverage is mixed but MarketBeat shows a consensus rating of "Moderate Buy" with a consensus price target of $146.02 (1 Strong Buy, 6 Buy, 2 Hold, 2 Sell).
• Madison Asset Management boosted its stake in Adidas by 11.5% to 20,442 shares, worth roughly $2.17M, signaling some institutional buying interest.

Adidas AG (OTCMKTS:ADDYY - Get Free Report)'s share price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $81.00, but opened at $88.00. Adidas shares last traded at $87.40, with a volume of 8,659 shares trading hands.

The company reported $1.58 earnings per share for the quarter, topping analysts' consensus estimates of $1.55 by $0.03. Adidas had a net margin of 5.36% and a return on equity of 22.31%.

Analysts Set New Price Targets

ADDYY has been the topic of a number of analyst reports. Santander assumed coverage on Adidas in a research note on Thursday, January 15th. They issued an "outperform" rating on the stock. Zacks Research downgraded Adidas from a "hold" rating to a "strong sell" rating in a report on Friday, March 6th. Sanford C. Bernstein reissued an "outperform" rating and issued a $146.02 target price on shares of Adidas in a research note on Tuesday, January 6th. Citigroup restated a "buy" rating on shares of Adidas in a report on Tuesday, February 3rd. Finally, Bank of America reaffirmed an "underperform" rating on shares of Adidas in a research note on Tuesday, January 6th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Adidas currently has a consensus rating of "Moderate Buy" and a consensus price target of $146.02.

Hedge Funds Weigh In On Adidas

A hedge fund recently raised its stake in Adidas stock. Madison Asset Management LLC boosted its stake in shares of Adidas AG (OTCMKTS:ADDYY - Free Report) by 11.5% during the 3rd quarter, according to its most recent 13F filing with the SEC. The firm owned 20,442 shares of the company's stock after buying an additional 2,110 shares during the period. Madison Asset Management LLC's holdings in Adidas were worth $2,166,000 as of its most recent filing with the SEC.

Adidas Stock Up 7.9%

The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.68 and a current ratio of 1.32. The firm's fifty day simple moving average is $82.80 and its 200 day simple moving average is $91.03. The stock has a market capitalization of $31.22 billion, a price-to-earnings ratio of 20.75, a P/E/G ratio of 1.18 and a beta of 1.22.

Adidas Company Profile

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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