Crocs (NASDAQ:CROX) Trading Down 4.5% - Time to Sell?

Key Points

• Crocs shares fell 4.5% during mid-day trading, closing at $81.10, with trading volume down 64% from average levels.
• Several analysts, including Piper Sandler and UBS Group, have downgraded Crocs' stock ratings and lowered price targets significantly.
• Despite the recent declines, Crocs reported a quarterly EPS of $4.23, surpassing consensus estimates, with revenue up 3.4% year-over-year.

Crocs, Inc. (NASDAQ:CROX - Get Free Report) shares dropped 4.5% during mid-day trading on Monday . The stock traded as low as $81.45 and last traded at $81.10. Approximately 667,397 shares changed hands during trading, a decline of 64% from the average daily volume of 1,833,542 shares. The stock had previously closed at $84.89.

Wall Street Analysts Forecast Growth

CROX has been the topic of a number of analyst reports. Piper Sandler downgraded shares of Crocs from an "overweight" rating to a "neutral" rating and reduced their price objective for the stock from $95.00 to $75.00 in a research note on Monday, September 22nd. UBS Group cut their price target on shares of Crocs from $110.00 to $85.00 and set a "neutral" rating for the company in a report on Monday, August 11th. Stifel Nicolaus reissued a "hold" rating and issued a $85.00 price objective (down from $127.00) on shares of Crocs in a research note on Friday, August 8th. Barclays reaffirmed an "equal weight" rating and issued a $81.00 target price (down previously from $119.00) on shares of Crocs in a report on Friday, August 8th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Crocs in a research report on Saturday, September 27th. Seven analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $102.00.

Crocs Stock Down 5.0%

The stock's 50-day simple moving average is $85.74 and its 200-day simple moving average is $96.93. The firm has a market capitalization of $4.40 billion, a P/E ratio of 21.62, a P/E/G ratio of 1.95 and a beta of 1.43. The company has a current ratio of 1.54, a quick ratio of 0.97 and a debt-to-equity ratio of 0.97.

Crocs (NASDAQ:CROX - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The textile maker reported $4.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.01 by $0.22. Crocs had a return on equity of 44.15% and a net margin of 5.72%.The firm had revenue of $1.15 billion during the quarter, compared to the consensus estimate of $1.15 billion. During the same quarter in the prior year, the company earned $4.01 EPS. The business's revenue for the quarter was up 3.4% on a year-over-year basis. Crocs has set its Q3 2025 guidance at EPS. As a group, research analysts predict that Crocs, Inc. will post 13.2 earnings per share for the current fiscal year.

Insider Activity at Crocs

In other Crocs news, EVP Susan L. Healy bought 2,000 shares of Crocs stock in a transaction that occurred on Tuesday, August 12th. The stock was acquired at an average cost of $76.56 per share, for a total transaction of $153,120.00. Following the completion of the transaction, the executive vice president directly owned 50,078 shares in the company, valued at $3,833,971.68. This represents a 4.16% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Also, Director John B. Replogle bought 3,261 shares of the business's stock in a transaction on Friday, August 8th. The stock was purchased at an average cost of $76.69 per share, with a total value of $250,086.09. Following the purchase, the director owned 15,417 shares of the company's stock, valued at $1,182,329.73. This represents a 26.83% increase in their ownership of the stock. The disclosure for this purchase can be found here. Corporate insiders own 2.72% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Costello Asset Management INC bought a new position in Crocs in the 1st quarter valued at approximately $32,000. Larson Financial Group LLC lifted its holdings in shares of Crocs by 541.8% during the first quarter. Larson Financial Group LLC now owns 353 shares of the textile maker's stock valued at $37,000 after purchasing an additional 298 shares in the last quarter. IMA Advisory Services Inc. purchased a new stake in shares of Crocs during the first quarter valued at $40,000. Brooklyn Investment Group purchased a new position in Crocs in the 1st quarter worth about $40,000. Finally, Allworth Financial LP boosted its holdings in shares of Crocs by 120.7% during the 2nd quarter. Allworth Financial LP now owns 448 shares of the textile maker's stock valued at $45,000 after acquiring an additional 245 shares during the last quarter. Institutional investors own 93.44% of the company's stock.

About Crocs

Crocs, Inc, together with its subsidiaries, designs, develops, manufactures, markets, distributes, and sells casual lifestyle footwear and accessories for men, women, and children under Crocs and HEYDUDE Brand in the United States and internationally. The company offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, charms, flip flops, sneakers, and slippers.

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