Boot Barn (NYSE:BOOT) Shares Gap Up After Earnings Beat

Key Points

• Boot Barn's earnings report exceeded expectations, with an EPS of $1.74 compared to the anticipated $1.55, and revenue reaching $504.07 million, up 19.1% year-over-year.
• The company has initiated a $200 million stock buyback plan, indicating that the board believes the company's shares are undervalued.
• Analyst ratings are largely positive, with a consensus of an "overweight" rating and an average price target of $180.38.

Boot Barn Holdings, Inc. (NYSE:BOOT - Get Free Report) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $171.90, but opened at $182.76. Boot Barn shares last traded at $172.89, with a volume of 253,442 shares.

The company reported $1.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.55 by $0.19. The business had revenue of $504.07 million during the quarter, compared to the consensus estimate of $489.49 million. Boot Barn had a return on equity of 16.98% and a net margin of 9.47%. The business's revenue was up 19.1% on a year-over-year basis. During the same period in the previous year, the firm posted $1.26 earnings per share.

Boot Barn declared that its board has initiated a stock buyback plan on Wednesday, May 14th that authorizes the company to repurchase $200.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 4.8% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board believes its shares are undervalued.

Analyst Upgrades and Downgrades

BOOT has been the topic of several research reports. Piper Sandler upped their price target on Boot Barn from $184.00 to $185.00 and gave the company an "overweight" rating in a report on Monday. Stephens assumed coverage on Boot Barn in a report on Wednesday, April 9th. They set an "overweight" rating and a $100.00 price objective for the company. Jefferies Financial Group lowered Boot Barn from a "buy" rating to a "hold" rating and cut their price objective for the stock from $187.00 to $175.00 in a report on Wednesday, July 23rd. Robert W. Baird increased their price objective on Boot Barn from $140.00 to $180.00 and gave the stock an "outperform" rating in a report on Thursday, May 15th. Finally, JPMorgan Chase & Co. increased their price objective on Boot Barn from $207.00 to $247.00 and gave the stock an "overweight" rating in a report on Monday. One research analyst has rated the stock with a sell rating, two have issued a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $180.38.

Insider Buying and Selling

In other news, insider Michael A. Love sold 4,154 shares of Boot Barn stock in a transaction that occurred on Friday, May 23rd. The shares were sold at an average price of $155.34, for a total value of $645,282.36. Following the completion of the transaction, the insider owned 2,112 shares in the company, valued at approximately $328,078.08. The trade was a 66.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Laurie Marie Grijalva sold 2,438 shares of the business's stock in a transaction that occurred on Thursday, May 22nd. The stock was sold at an average price of $160.67, for a total transaction of $391,713.46. Following the completion of the transaction, the insider owned 14,593 shares of the company's stock, valued at $2,344,657.31. This trade represents a 14.32% decrease in their position. The disclosure for this sale can be found here. 0.66% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of BOOT. Opal Wealth Advisors LLC acquired a new position in shares of Boot Barn in the 1st quarter valued at $29,000. Golden State Wealth Management LLC grew its holdings in shares of Boot Barn by 263.6% in the 1st quarter. Golden State Wealth Management LLC now owns 280 shares of the company's stock valued at $30,000 after buying an additional 203 shares during the period. Versant Capital Management Inc grew its holdings in shares of Boot Barn by 210.8% in the 1st quarter. Versant Capital Management Inc now owns 317 shares of the company's stock valued at $34,000 after buying an additional 215 shares during the period. Maseco LLP acquired a new position in Boot Barn in the 2nd quarter worth $40,000. Finally, BI Asset Management Fondsmaeglerselskab A S acquired a new position in Boot Barn in the 1st quarter worth $44,000.

Boot Barn Trading Up 1.0%

The stock has a market capitalization of $5.31 billion, a price-to-earnings ratio of 29.56, a price-to-earnings-growth ratio of 2.07 and a beta of 1.69. The stock's 50 day moving average is $164.40 and its two-hundred day moving average is $137.61.

Boot Barn Company Profile

Boot Barn Holdings, Inc, a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing.

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