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

Key Points

• Ermenegildo Zegna currently has a consensus analyst rating of “Moderate Buy” from nine brokerages, with five buy ratings and four hold ratings. The average 12-month price target is about $13.01.
• Several analysts recently adjusted their views, including Goldman Sachs downgrading the stock to neutral while raising its target to $14.00, and TD Cowen upgrading it to buy with a higher $15.00 target. JPMorgan also increased its price target to $14.00 and kept an overweight rating.
• The stock was down 0.9% to $13.44 in Friday trading, near its 50-day moving average of $13.59. The company also reported insider sales and noted institutional investors such as Temasek and Barrow Hanley increased their holdings.

Shares of Ermenegildo Zegna N.V. (NYSE:ZGN - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the nine brokerages that are currently covering the company, Marketbeat reports. Four investment analysts have rated the stock with a hold rating and five have issued a buy rating on the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $13.0111.

Several equities analysts have recently weighed in on ZGN shares. The Goldman Sachs Group lowered shares of Ermenegildo Zegna from a "buy" rating to a "neutral" rating and increased their price objective for the company from $13.30 to $14.00 in a research report on Wednesday, June 17th. UBS Group reaffirmed a "buy" rating and set a $14.50 target price on shares of Ermenegildo Zegna in a report on Friday, May 1st. Wall Street Zen raised shares of Ermenegildo Zegna from a "hold" rating to a "buy" rating in a report on Sunday. JPMorgan Chase & Co. lifted their price target on Ermenegildo Zegna from $12.50 to $14.00 and gave the stock an "overweight" rating in a report on Tuesday, June 30th. Finally, TD Cowen upgraded Ermenegildo Zegna from a "hold" rating to a "buy" rating and boosted their price target for the company from $13.00 to $15.00 in a research note on Wednesday, May 20th.

Ermenegildo Zegna Stock Down 0.9%

Shares of NYSE ZGN traded down $0.13 during midday trading on Friday, hitting $13.44. 1,239,968 shares of the company's stock were exchanged, compared to its average volume of 1,272,061. 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 has a 12 month low of $7.61 and a 12 month high of $15.44. The company's 50 day moving average price is $13.59 and its 200 day moving average price is $11.65.

Ermenegildo Zegna Cuts Dividend

The company also recently announced an annual dividend, which will be paid on Wednesday, July 29th. Stockholders of record on Monday, July 6th will be issued a dividend of $0.12 per share. The ex-dividend date of this dividend is Monday, July 6th. This represents a dividend yield of 102.0%.

Insider Activity

In related news, CEO Gianluca Ambrogio Tagliabue sold 19,105 shares of the firm's stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $13.12, for a total transaction of $250,657.60. Following 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 Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Alessandro Sartori sold 6,505 shares of Ermenegildo Zegna stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $13.12, for a total transaction of $85,345.60. Following the completion of the sale, the director owned 142,237 shares of the company's stock, valued at $1,866,149.44. This trade represents a 4.37% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 31,378 shares of company stock valued at $411,679. 1.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Temasek Holdings Private Ltd raised its position in shares of Ermenegildo Zegna by 114.5% in the third quarter. Temasek Holdings Private Ltd now owns 27,242,276 shares of the company's stock valued at $257,440,000 after buying an additional 14,542,295 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC grew its position in Ermenegildo Zegna by 74.6% during the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 4,177,804 shares of the company's stock worth $42,822,000 after buying an additional 1,785,266 shares in the last quarter. Portolan Capital Management LLC increased its stake in Ermenegildo Zegna by 15.6% during the 3rd quarter. Portolan Capital Management LLC now owns 1,369,176 shares of the company's stock worth $12,939,000 after acquiring an additional 185,190 shares during the period. Millennium Management LLC increased its stake in Ermenegildo Zegna by 73.7% during the 4th quarter. Millennium Management LLC now owns 1,188,887 shares of the company's stock worth $12,186,000 after acquiring an additional 504,546 shares during the period. Finally, Amundi acquired a new position in Ermenegildo Zegna in the 1st quarter valued at $10,686,000. Institutional investors and hedge funds own 12.91% of the company's stock.

About Ermenegildo Zegna

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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