Reformation (NYSE:REF) Releases Quarterly Earnings Results, Hits Estimates

Key Points

• Reformation reported quarterly EPS of $0.02, matching analysts’ consensus estimate.
• Shares fell $1.56 to $16.85 in Thursday midday trading, despite the earnings result.
• Analysts’ average rating is “Moderate Buy,” with an average price target of $19.25; major shareholder Scsp Refo and director Yael Aflalo each sold shares.

Reformation (NYSE:REF - Get Free Report) released its earnings results on Thursday. The company reported $0.02 earnings per share for the quarter, meeting analysts' consensus estimates of $0.02, Zacks reports.

Reformation Price Performance

REF traded down $1.56 during midday trading on Thursday, reaching $16.85. 562,760 shares of the company's stock traded hands, compared to its average volume of 500,817. Reformation has a 52 week low of $11.85 and a 52 week high of $18.44. The company has a quick ratio of 0.96, a current ratio of 1.58 and a debt-to-equity ratio of 0.64. The firm has a fifty day moving average price of $14.24. The company has a market cap of $995.50 million and a PE ratio of -1,685.00.

Insider Buying and Selling

In related news, major shareholder Scsp Refo sold 149,596 shares of the company's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $13.95, for a total transaction of $2,086,864.20. Following the completion of the transaction, the insider owned 28,942,153 shares in the company, valued at $403,743,034.35. This represents a 0.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Yael Aflalo sold 60,298 shares of the business's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $13.95, for a total transaction of $841,157.10. Following the transaction, the director directly owned 11,665,505 shares in the company, valued at approximately $162,733,794.75. The trade was a 0.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Analysts Set New Price Targets

Several equities analysts recently issued reports on REF shares. Guggenheim restated a "buy" rating and set a $20.00 price target on shares of Reformation in a research report on Friday, September 11th. JPMorgan Chase & Co. began coverage on Reformation in a research report on Monday, August 24th. They issued an "overweight" rating and a $21.00 price objective for the company. Wall Street Zen raised Reformation to a "hold" rating in a research note on Saturday, October 3rd. Morgan Stanley began coverage on shares of Reformation in a report on Monday, August 24th. They issued an "equal weight" rating and a $16.00 target price on the stock. Finally, Citigroup assumed coverage on shares of Reformation in a report on Monday, August 24th. They issued a "buy" rating and a $20.00 target price on the stock. Eight research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $19.25.

Reformation Company Profile

Reformation is a fashion company that designs and sells women's clothing, footwear, accessories and related products. Its assortment includes dresses, tops, denim, knitwear, outerwear, shoes, handbags and wedding apparel, with products offered through its direct-to-consumer website and retail stores.

Founded in 2009 by Yael Aflalo, Reformation built its brand around combining contemporary style with sustainability-focused production practices. The company has emphasized the use of lower-impact materials, reuse of vintage garments and deadstock fabrics, and efforts to reduce the environmental impact of its operations and supply chain.

Reformation serves customers in the United States and internationally through its online platform and a network of retail locations.

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