Commerce Bank Cuts Stake in Deckers Outdoor Corporation (NYSE:DECK)

Key Points

• Commerce Bank has reduced its holdings in Deckers Outdoor Corporation by 75.2%, now owning 9,887 shares valued at approximately $1.1 million.
• Deckers Outdoor reported earnings of $0.93 per share for the last quarter, exceeding analyst expectations and reflecting a 16.9% year-over-year revenue growth.
• The company has initiated a $2.25 billion share repurchase plan, indicating that its board believes the stock is undervalued.

Commerce Bank reduced its holdings in shares of Deckers Outdoor Corporation (NYSE:DECK - Free Report) by 75.2% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 9,887 shares of the textile maker's stock after selling 30,000 shares during the quarter. Commerce Bank's holdings in Deckers Outdoor were worth $1,105,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Mpwm Advisory Solutions LLC bought a new stake in Deckers Outdoor in the 4th quarter valued at $26,000. Headlands Technologies LLC bought a new stake in shares of Deckers Outdoor during the 4th quarter worth $29,000. Vega Investment Solutions bought a new stake in shares of Deckers Outdoor during the 4th quarter worth $29,000. Mountain Hill Investment Partners Corp. bought a new stake in shares of Deckers Outdoor during the 1st quarter worth $34,000. Finally, Fourth Dimension Wealth LLC bought a new position in Deckers Outdoor in the fourth quarter valued at about $41,000. 97.79% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

DECK has been the subject of several research reports. Citigroup dropped their target price on Deckers Outdoor from $215.00 to $150.00 and set a "buy" rating for the company in a research report on Monday, April 28th. Wells Fargo & Company raised their target price on Deckers Outdoor from $90.00 to $100.00 and gave the stock an "equal weight" rating in a research note on Friday, July 25th. The Goldman Sachs Group cut their price target on Deckers Outdoor from $90.00 to $87.00 and set a "sell" rating on the stock in a report on Tuesday, July 22nd. Needham & Company LLC reaffirmed a "buy" rating and set a $128.00 target price (up previously from $120.00) on shares of Deckers Outdoor in a research report on Wednesday, July 23rd. Finally, UBS Group increased their price target on Deckers Outdoor from $144.00 to $158.00 and gave the company a "buy" rating in a research report on Friday, July 25th. One analyst has rated the stock with a sell rating, fourteen have assigned a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $137.50.

Deckers Outdoor Stock Performance

NYSE DECK traded down $0.30 during trading hours on Friday, hitting $101.59. The company had a trading volume of 2,253,155 shares, compared to its average volume of 4,555,924. Deckers Outdoor Corporation has a 52 week low of $93.72 and a 52 week high of $223.98. The firm has a 50 day simple moving average of $104.81 and a 200 day simple moving average of $122.73. The firm has a market capitalization of $15.07 billion, a price-to-earnings ratio of 15.58, a PEG ratio of 3.89 and a beta of 0.99.

Deckers Outdoor (NYSE:DECK - Get Free Report) last issued its earnings results on Thursday, July 24th. The textile maker reported $0.93 EPS for the quarter, topping the consensus estimate of $0.68 by $0.25. Deckers Outdoor had a return on equity of 40.49% and a net margin of 19.42%. The business had revenue of $964.54 million during the quarter, compared to the consensus estimate of $901.45 million. During the same quarter last year, the company earned $4.52 EPS. The firm's revenue was up 16.9% compared to the same quarter last year. On average, research analysts forecast that Deckers Outdoor Corporation will post 5.89 earnings per share for the current year.

Deckers Outdoor announced that its Board of Directors has initiated a share buyback plan on Thursday, May 22nd that allows the company to buyback $2.25 billion in shares. This buyback authorization allows the textile maker to reacquire up to 11.7% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

Insider Activity

In other Deckers Outdoor news, Director Cindy L. Davis purchased 1,825 shares of the company's stock in a transaction dated Friday, June 6th. The stock was purchased at an average price of $109.76 per share, for a total transaction of $200,312.00. Following the transaction, the director owned 13,340 shares in the company, valued at $1,464,198.40. The trade was a 15.85% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Angela Ogbechie sold 6,244 shares of Deckers Outdoor stock in a transaction dated Monday, June 2nd. The shares were sold at an average price of $103.89, for a total value of $648,689.16. Following the sale, the insider owned 19,980 shares of the company's stock, valued at approximately $2,075,722.20. This trade represents a 23.81% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.40% of the company's stock.

About Deckers Outdoor

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the United States and internationally. The company offers premium footwear, apparel, and accessories under the UGG brand name; footwear, apparel, and accessories for ultra-runners and athletes under the HOKA brand name; and sandals, shoes, and boots under the Teva brand name.