Ermenegildo Zegna N.V. (NYSE:ZGN) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Ermenegildo Zegna has a consensus analyst rating of “Moderate Buy” from eight covering analysts, with five buy ratings and three hold ratings. The average 12-month price target is $12.51.
• Recent analyst actions were mixed but generally constructive, including upgrades from Wall Street Zen and TD Cowen, while UBS reaffirmed a buy rating and Morgan Stanley initiated coverage with an equal-weight view.
• The company reported weaker-than-expected quarterly results, with earnings of $0.15 per share versus $0.26 expected and revenue of $577.83 million versus $1.17 billion expected. Insiders also sold shares recently, though the sales were tied to tax withholding on equity awards.

Ermenegildo Zegna N.V. (NYSE:ZGN - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the eight analysts that are presently covering the firm, Marketbeat Ratings reports. Three investment analysts have rated the stock with a hold rating and five have given a buy rating to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $12.5125.

Several analysts have recently commented on the stock. Wall Street Zen upgraded shares of Ermenegildo Zegna from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. TD Cowen raised shares of Ermenegildo Zegna from a "hold" rating to a "buy" rating and raised their target price for the company from $13.00 to $15.00 in a research note on Wednesday. Morgan Stanley began coverage on shares of Ermenegildo Zegna in a research note on Thursday, February 12th. They set an "equal weight" rating and a $11.00 target price for the company. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Ermenegildo Zegna in a research note on Monday, April 20th. Finally, UBS Group reaffirmed a "buy" rating and set a $14.50 target price on shares of Ermenegildo Zegna in a research note on Friday, May 1st.

Insider Activity at Ermenegildo Zegna

In related news, CEO Gianluca Ambrogio Tagliabue sold 19,105 shares of the firm's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $13.12, for a total transaction of $250,657.60. Following the completion of the transaction, the chief executive officer directly owned 167,720 shares of the company's stock, valued at approximately $2,200,486.40. This trade represents a 10.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Gian Franco Santhia sold 5,768 shares of the firm's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $13.12, for a total transaction of $75,676.16. Following the transaction, the chief financial officer directly owned 44,448 shares of the company's stock, valued at $583,157.76. The trade was a 11.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 31,378 shares of company stock valued at $411,679. Corporate insiders own 1.20% of the company's stock.

Hedge Funds Weigh In On Ermenegildo Zegna

A number of institutional investors and hedge funds have recently made changes to their positions in ZGN. Millennium Management LLC grew its stake in shares of Ermenegildo Zegna by 182.8% in the 1st quarter. Millennium Management LLC now owns 1,149,055 shares of the company's stock worth $8,503,000 after buying an additional 742,680 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Ermenegildo Zegna by 22.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 134,503 shares of the company's stock worth $995,000 after buying an additional 24,862 shares in the last quarter. Jane Street Group LLC purchased a new position in shares of Ermenegildo Zegna in the 1st quarter worth $1,161,000. Geode Capital Management LLC purchased a new position in shares of Ermenegildo Zegna in the 2nd quarter worth $6,245,000. Finally, JPMorgan Chase & Co. grew its stake in shares of Ermenegildo Zegna by 59,691.8% in the 2nd quarter. JPMorgan Chase & Co. now owns 29,298 shares of the company's stock worth $250,000 after buying an additional 29,249 shares in the last quarter. 12.91% of the stock is owned by hedge funds and other institutional investors.

Ermenegildo Zegna Price Performance

Shares of ZGN stock opened at $13.31 on Friday. Ermenegildo Zegna has a one year low of $7.61 and a one year high of $13.50. The company's fifty day moving average price is $11.42 and its 200-day moving average price is $10.75. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.91 and a current ratio of 1.59.

Ermenegildo Zegna (NYSE:ZGN - Get Free Report) last announced its quarterly earnings data on Friday, March 20th. The company reported $0.15 EPS for the quarter, missing the consensus estimate of $0.26 by ($0.11). The firm had revenue of $577.83 million for the quarter, compared to analysts' expectations of $1.17 billion. As a group, equities research analysts anticipate that Ermenegildo Zegna will post 0.46 EPS for the current year.

Ermenegildo Zegna Cuts Dividend

The business also recently announced an annual dividend, which will be paid on Wednesday, July 29th. Investors of record on Monday, July 6th will be paid a dividend of $0.12 per share. This represents a yield of 99.0%. The ex-dividend date of this dividend is Monday, July 6th.

Ermenegildo Zegna Company Profile

Ermenegildo Zegna is a global luxury fashion house specializing in men's tailored clothing, casualwear, accessories, footwear and fragrances. With a focus on high-quality fabrics and craftsmanship, the company manages the entire value chain from wool sourcing and textile production to garment design, manufacturing and retail distribution.

Founded in 1910 by Ermenegildo Zegna in Trivero, Italy, the company began as a textile mill dedicated to producing fine wool fabrics. Over the decades it expanded into ready-to-wear clothing and built a reputation for sartorial excellence.

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