Ermenegildo Zegna (NYSE:ZGN) Hits New 12-Month High - Still a Buy?

Key Points

• Ermenegildo Zegna shares reached a new 52-week high of $15.95 before trading near $14.96, supported by rising momentum above its 50-day and 200-day moving averages.
• Analyst sentiment is positive, with five Buy ratings and four Holds producing a “Moderate Buy” consensus. However, the average price target of $13.23 is below the current share price, while TD Cowen’s latest target is $17.00.
• Institutional investors have increased their positions, but insiders sold 31,378 shares worth about $411,679 over the past three months, primarily to cover tax obligations related to vested equity awards.

Shares of Ermenegildo Zegna N.V. (NYSE:ZGN - Get Free Report) hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $15.95 and last traded at $14.9560, with a volume of 17381 shares trading hands. The stock had previously closed at $15.21.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on ZGN. JPMorgan Chase & Co. increased their price objective on shares of Ermenegildo Zegna from $12.50 to $14.00 and gave the stock an "overweight" rating in a research note on Tuesday, June 30th. Wall Street Zen raised Ermenegildo Zegna from a "hold" rating to a "buy" rating in a research report on Tuesday, July 28th. Weiss Ratings reiterated a "hold (c)" rating on shares of Ermenegildo Zegna in a report on Friday, July 17th. UBS Group restated a "buy" rating and issued a $14.50 price target on shares of Ermenegildo Zegna in a research note on Friday, May 1st. Finally, TD Cowen boosted their price target on Ermenegildo Zegna from $15.00 to $17.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. Five research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, Ermenegildo Zegna presently has an average rating of "Moderate Buy" and an average price target of $13.23.

Ermenegildo Zegna Price 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 company's 50 day moving average is $14.08 and its 200-day moving average is $12.13.

Insider Buying and Selling

In other Ermenegildo Zegna news, CEO Gianluca Ambrogio Tagliabue sold 19,105 shares of the stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $13.12, for a total value of $250,657.60. Following the transaction, the chief executive officer directly owned 167,720 shares of the company's stock, valued at $2,200,486.40. This represents a 10.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 company's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $13.12, for a total value of $85,345.60. Following the completion of the transaction, the director directly owned 142,237 shares in the company, valued at $1,866,149.44. The trade was 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. In the last three months, insiders have sold 31,378 shares of company stock valued at $411,679. 1.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Ermenegildo Zegna

Several institutional investors and hedge funds have recently modified their holdings of ZGN. 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. Amundi bought a new position in Ermenegildo Zegna in the first quarter valued at about $10,686,000. Millennium Management LLC grew its holdings in shares of Ermenegildo Zegna by 182.8% during the 1st quarter. Millennium Management LLC now owns 1,149,055 shares of the company's stock valued at $8,503,000 after purchasing an additional 742,680 shares during the last quarter. Geode Capital Management LLC bought a new stake in shares of Ermenegildo Zegna during the second quarter worth $6,245,000. Finally, Walleye Capital LLC grew its position in Ermenegildo Zegna by 1,938.7% during the 1st quarter. Walleye Capital LLC now owns 665,851 shares of the company's stock worth $6,938,000 after acquiring an additional 633,191 shares during the last quarter. 12.91% of the stock is currently owned by institutional investors and hedge funds.

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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