Ermenegildo Zegna (NYSE:ZGN) Hits New 1-Year High - What's Next?

Key Points

• Ermenegildo Zegna shares hit a new 52-week high, trading as high as $13.38 on Wednesday and closing well above the prior day’s $12.52 level.
• Analyst sentiment has improved overall, with TD Cowen upgrading the stock to Buy and lifting its price target to $15, while UBS also reiterated a Buy rating; the consensus view is now Moderate Buy.
• The company reported weaker-than-expected quarterly results, missing EPS and revenue estimates, and insiders recently sold shares, though institutional investors such as Temasek and Barrow Hanley increased their stakes.

Ermenegildo Zegna N.V. (NYSE:ZGN - Get Free Report) shares reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $13.38 and last traded at $13.38, with a volume of 330297 shares changing hands. The stock had previously closed at $12.52.

Analyst Ratings Changes

Several research firms have issued reports on ZGN. Morgan Stanley began coverage on Ermenegildo Zegna in a research note on Thursday, February 12th. They issued an "equal weight" rating and a $11.00 price target on the stock. TD Cowen raised Ermenegildo Zegna from a "hold" rating to a "buy" rating and lifted their price target for the company from $13.00 to $15.00 in a research note on Wednesday. Weiss Ratings reissued a "hold (c)" rating on shares of Ermenegildo Zegna in a research note on Monday, April 20th. Wall Street Zen raised Ermenegildo Zegna from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Finally, UBS Group reissued a "buy" rating and issued a $14.50 price target on shares of Ermenegildo Zegna in a research note on Friday, May 1st. Five investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $12.51.

Ermenegildo Zegna Stock Performance

The company has a quick ratio of 0.91, a current ratio of 1.59 and a debt-to-equity ratio of 0.15. The business has a 50-day moving average of $11.25 and a 200-day moving average of $10.69.

Ermenegildo Zegna (NYSE:ZGN - Get Free Report) last released its earnings results on Friday, March 20th. The company reported $0.15 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.26 by ($0.11). The company had revenue of $577.83 million during the quarter, compared to analyst estimates of $1.17 billion. On average, analysts anticipate that Ermenegildo Zegna N.V. will post 0.46 earnings per share 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 given a $0.12 dividend. The ex-dividend date of this dividend is Monday, July 6th. This represents a dividend yield of 99.0%.

Insider Activity at Ermenegildo Zegna

In related news, CFO Gian Franco Santhia sold 5,768 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 value of $75,676.16. Following the sale, the chief financial officer owned 44,448 shares of the company's stock, valued at approximately $583,157.76. The trade was a 11.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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 the business's stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $13.12, for a total value of $85,345.60. Following the transaction, the director directly owned 142,237 shares in the company, valued at approximately $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 quarter, insiders have sold 31,378 shares of company stock valued at $411,679. 1.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Ermenegildo Zegna

A number of institutional investors have recently made changes to their positions in ZGN. Temasek Holdings Private Ltd boosted its stake 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 during the period. Barrow Hanley Mewhinney & Strauss LLC boosted its stake in shares of Ermenegildo Zegna by 74.6% in the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 4,177,804 shares of the company's stock valued at $42,822,000 after buying an additional 1,785,266 shares during the period. Artisan Partners Limited Partnership boosted its stake in shares of Ermenegildo Zegna by 1.2% in the third quarter. Artisan Partners Limited Partnership now owns 2,123,543 shares of the company's stock valued at $20,067,000 after buying an additional 24,894 shares during the period. Portolan Capital Management LLC boosted its stake in shares of Ermenegildo Zegna by 15.6% in the third quarter. Portolan Capital Management LLC now owns 1,369,176 shares of the company's stock valued at $12,939,000 after buying an additional 185,190 shares during the period. Finally, Millennium Management LLC boosted its stake in shares of Ermenegildo Zegna by 73.7% in the fourth quarter. Millennium Management LLC now owns 1,188,887 shares of the company's stock valued at $12,186,000 after buying an additional 504,546 shares during the period. Institutional investors own 12.91% of the company's stock.

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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