Ermenegildo Zegna (NYSE:ZGN) Shares Up 6.6% - Should You Buy?

Key Points

• Ermenegildo Zegna shares rose 6.6% on Thursday, trading as high as $14.32 on volume above average, suggesting renewed investor interest in the luxury fashion stock.
• Wall Street sentiment is mixed but generally positive: several firms have recently lifted targets or ratings, and the stock now carries a “Moderate Buy” consensus with an average target price of $13.01.
• Recent corporate activity included insider share sales by the director and CFO, while institutional investors have been modestly adding to positions; the company also declared an annual dividend of $0.12 per share.

Ermenegildo Zegna N.V. (NYSE:ZGN - Get Free Report) traded up 6.6% on Thursday . The stock traded as high as $14.32 and last traded at $14.33. Approximately 1,153,955 shares were traded during mid-day trading, an increase of 24% from the average session volume of 927,290 shares. The stock had previously closed at $13.44.

Wall Street Analyst Weigh In

Several analysts have weighed in on ZGN shares. UBS Group reissued a "buy" rating and issued a $14.50 target price on shares of Ermenegildo Zegna in a report on Friday, May 1st. JPMorgan Chase & Co. boosted their price objective on shares of Ermenegildo Zegna from $12.50 to $14.00 and gave the stock an "overweight" rating in a research report on Tuesday, June 30th. The Goldman Sachs Group cut 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 note on Wednesday, June 17th. Weiss Ratings restated a "hold (c)" rating on shares of Ermenegildo Zegna in a research report on Monday, April 20th. Finally, TD Cowen raised shares of Ermenegildo Zegna from a "hold" rating to a "buy" rating and upped their price target for the company from $13.00 to $15.00 in a report on Wednesday, May 20th. Five investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $13.01.

Ermenegildo Zegna Stock Up 7.3%

The firm has a 50-day simple moving average of $13.63 and a two-hundred day simple moving average of $11.71. The company has a current ratio of 1.59, a quick ratio of 0.91 and a debt-to-equity ratio of 0.15.

Ermenegildo Zegna Cuts Dividend

The business also recently disclosed an annual dividend, which will be paid on Wednesday, July 29th. Investors of record on Monday, July 6th will be given a dividend of $0.12 per share. This represents a yield of 102.0%. The ex-dividend date is Monday, July 6th.

Insider Buying and Selling at Ermenegildo Zegna

In other Ermenegildo Zegna news, Director Alessandro Sartori sold 6,505 shares of the company's stock in a transaction dated Friday, May 8th. The shares were 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 represents a 4.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, 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 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 $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. This trade represents 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. In the last ninety days, insiders have sold 31,378 shares of company stock worth $411,679. Corporate insiders own 1.20% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of ZGN. EverSource Wealth Advisors LLC boosted its position in shares of Ermenegildo Zegna by 48.3% in the first quarter. EverSource Wealth Advisors LLC now owns 2,788 shares of the company's stock worth $29,000 after acquiring an additional 908 shares during the last quarter. Vident Advisory LLC increased its position in Ermenegildo Zegna by 6.5% during the fourth quarter. Vident Advisory LLC now owns 18,001 shares of the company's stock worth $185,000 after purchasing an additional 1,097 shares during the last quarter. Orion Porfolio Solutions LLC raised its stake in Ermenegildo Zegna by 12.9% during the third quarter. Orion Porfolio Solutions LLC now owns 11,583 shares of the company's stock worth $109,000 after purchasing an additional 1,323 shares during the period. Deutsche Bank AG boosted its holdings in shares of Ermenegildo Zegna by 3.3% in the 4th quarter. Deutsche Bank AG now owns 57,477 shares of the company's stock valued at $589,000 after purchasing an additional 1,822 shares during the last quarter. Finally, Tower Research Capital LLC TRC boosted its holdings in shares of Ermenegildo Zegna by 73.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 7,146 shares of the company's stock valued at $61,000 after purchasing an additional 3,033 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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